A comfortable retirement is one thing that many of us look forward to after a lifetime of work. Here are 3 companies that could go a long way to creating ease and security in your twilight years:
XERO FPO NZX (ASX:XRO)
An unusual suggestion, given that this cloud accounting software company is unprofitable and doesn't pay a dividend, I nevertheless think Xero is shaping up as an interesting dividend possibility over the very long term. With high profit margins, a growing market share, and high potential for reinvesting its profits into itself (in a way that will generate even more profits), Xero could be an attractive dividend-paying blue chip in 20 years.
Washington H. Soul Pattinson and Co. Ltd (ASX:SOL)
This investment company has been around for over 100 years already, so another 20 is unlikely to be a stretch. Family-run, with a long-term owners mindset, 'Soul Patts' owns a conglomerate of ASX-listed shares including TPG Telecom Ltd (ASX:TPM) and other diverse businesses – and has never not paid a dividend. This is exactly the type of business that should look very interesting to prospective retirees.
Challenger Ltd (ASX: CGF)
Challenger Ltd is a provider of financial products like annuities, and operates a fund management business. As such it is sensitive to changes in investment markets – for example, some commentators have written that the bond market will surely take a tumble once US rates start climbing.
However, for those with the ability to look ahead over the next 20 years, Challenger is in a strong position to benefit from the growing amount of money flowing into Australia's retirement industry. You will probably even use one of its fee-free annuities yourself eventually. Challenger could become meaningfully larger over the next 20 years.
