I'm about to tell you three stocks I'd buy if I had $10,000 to spend on blue-chips right now…
However, before I tell you what you want to know, it's important I tell you what you need to know…
First, there's no guarantee that any of my picks will perform well.
Second, just because I'd buy these, doesn't mean you should.
Third, I'm a long-term investor. That means I'm interested in holding stocks forever.
Fourth, there is no number four.
3 blue-chip dividend stocks I'd buy with $10,000
- Coca-Cola Amatil Ltd (ASX: CCL)
Coca-Cola Amatil, or CCA, had a tough trot over the past few years as competition within its local beverage business heated up, the Australian dollar hurt its tinned fruit business SPC Ardmona, and the Indonesian market continued to underperform expectations. However, I'm of the opinion that the worst share price damage has been done. In addition to being a sound value play, its yield of 3.8% is appealing in this low-interest rate environment.
- APA Group (ASX: APA)
Pipeline giant APA Group reported its results earlier this week and whilst I was pleased with its performance, I ultimately concluded, "investors must be comfortable holding its shares for the ultra-long term because they appear close to fully priced." However as Warren Buffett famously put it, "It's better hold to a wonderful business at a fair price, then a fair business at a wonderful price." With its QCLNG pipeline expected to come online this half and an economic moat so wide you can't see the other side, if I were buying blue-chip dividend stocks now, I'd have to include APA.
- Woolworths Limited (ASX: WOW)
Woolworths ended down 9.5% today on the back of its half year results this morning. Summarising the results this morning I said, "It'll be interesting to see how the market reacts today" and, "any weakness in Woolworths' share price could be a sound buying opportunity for investors who want to add a stable income stock to their portfolios."
Whilst the Motley Fool's strict trading policy prohibits me from buying shares for a few days, at this reduced price I stand by what I said above. It looks a good buy for both income and modest capital gains potential over the next 5 to 10 years.
These three picks aren't perfect but if I was looking for income from dividends and the relative safety from blue chip stocks with robust competitive advantages, this is where I'd invest my $10,000 right now.
