MENU

3 ASX dividend shares I’d buy for my kids

For the record I don’t have any kids, but if I did I’d buy Macquarie Group Ltd (ASX: MQG) shares, Cochlear Limited (ASX: COH) shares and Vocus Group Ltd (ASX: VOC) shares for my kids at today’s prices.

Macquarie

Macquarie Group is Australia’s largest investment bank. In the finance community, Macquarie is seen as the pre-eminent headquarters of Australian finance. Naturally, the CEO of the ‘Macquarie millionaire factory’ earned more than $18 million in 2016 — by comparison, the Commonwealth Bank of Australia (ASX: CBA) CEO earned ‘only’ $12.3 million!

The reason Macquarie is held in such high esteem is because it’s an impressive business. Its operations stretch from Australian stock research to US infrastructure management and airplane financing. Make no mistake, the bank’s share price will rise and fall dramatically in-line with financial markets but if you are in it for the long run I think Macquarie will be a rewarding investment. It is forecast to pay a partially franked 4.7% dividend in the year ahead.

Cochlear

Hundreds of thousands of people around the globe can hear today because Cochlear implanted them with a hearing aid device years ago. Cochlear is the market leader of implantable hearing aid devices and accessories. Like Macquarie, the Cochlear share price has had some steep ups and downs since the GFC in 2009.

However, with most of its revenue coming from overseas markets and a strong brand, Cochlear appears primed for more modest long-term growth, in my opinion. Its shares don’t come cheap but offer a 2% franked dividend.

Vocus Group

Vocus is the name behind Dodo, Eftel, Primus, Amcom, NextGen and more. The $2.6 billion telecommunications company has an extensive fibre optic network, connecting Australia to Asia and beyond.

Vocus’ retail brands operate in a competitive market, against the likes of TPG Telecom Ltd (ASX: TPM) and Telstra Corporation Ltd (ASX: TLS). Further, the company’s share price recently fell hard following a management shake-up and as a result of valuation concerns.

However, at today’s prices, I think Vocus shares have modest growth potential and generous dividends on offer. It is forecast to pay a 3.3% fully franked dividend.

Foolish Takeaway

People often buy shares for dividends or growth. Meaning one or the other. However, it’s best to invest in shares that offer dividends + growth, since dividends might not always be paid.  For the best results, build a portfolio of stable, reliable dividend-paying ASX shares, and hold for the long run.

How to draw a steady paycheque from DIVIDENDS even after you retire...

We get it - trying to replace a consistent paycheque after years of relying on it is a scary prospect for millions of Australian investors. Will your savings last long enough? Will you be able to maintain the lifestyle you've become accustomed to? How do you draw enough income without tapping your portfolio directly?

These are just a few of the thousands of questions that investors like you have.

But only one answer is necessary: Motley Fool Australia's brand-new "ultimate income solution" - Motley Fool Everlasting Income.

To see how Everlasting Income could quickly and easily set you up to pay yourself monthly paycheques like $1,667... $2,500... even $3,333... or more - before this first-ever purely income-based service from Motley Fool Australia opens in a matter of days - just click here.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.