With interest rates sitting at a record low 2.25 per cent, returns from term deposits and bonds are no longer enough to sustain a person's standard of living – especially once inflation and taxes are also taken into account. As such, Australians are feeling more pressure to invest their money in the sharemarket where they stand a greater chance of superior investment returns.
However, many Australians are uncomfortable with the higher level of risk associated with investing in equities. After all, profits are not guaranteed, which is why stocks are expected to deliver superior returns in the first place. One of the best ways to overcome this risk is by investing in high-quality blue-chip stocks offering solid dividend yields.
These companies are built to last through even the toughest economic conditions, while their solid balance sheets and cash flows should ensure decent yields are maintained. With that in mind, here are four top ASX blue-chip stocks I'd be happy to buy for my family today.
Four blue-chip stocks for your retirement portfolio
- Coca-Cola Amatil Ltd (ASX: CCL) had a tough run over the last couple of years but management appears to have turned the ship around, expecting a brighter future. At $10.33 per share, the beverage manufacturer looks to be an excellent bet for the long-term – particularly with its 4.1% dividend yield (partially franked).
- Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has frequently been referred to as Australia's 'Berkshire Hathaway', the U.S. investment conglomerate headed by Warren Buffett. Soul Patts, as it is often known, is run by a world-class management team and has a long-term investment approach and offers a generous (and growing) dividend yield.
- Westfield Corp Ltd (ASX: WFD) owns and operates Westfield-branded shopping centres in the U.S. and the U.K., giving it excellent exposure to their recovering economies. In addition to its international growth prospects, it also pays out a healthy dividend which should improve as the Australian dollar weakens.
- Woolworths Limited (ASX: WOW) recently cut its full-year earnings guidance as it looks to invest in its supermarket division to drive long-term growth. The stock was smashed as a result and while the near-term could remain volatile, Foolish investors are being presented with the perfect opportunity to buy.
