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Despite the market being 'fully valued' there are still some great shares available for long-term investors.

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The S&P/ASX 200 (ASX: XJO) (^AXJO) has had a bullish run this past 12 months, notching up a 20% return not including dividends. Fuelled by dividend hungry investors, both locally and internationally, many of the index's biggest companies are trading at, or near, all-time highs.

This has prompted many investors to believe the market is fully valued. However, just as they were 12 months ago, savvy investors are still finding value and growth potential in many listed stocks.

For example many investors have been busy buying into blue chip dividend stocks, including the banks and two supermarket giants, pushing their prices higher than what would be considered a good price to pay. One stock that still holds potential for long term growth is Telstra (ASX: TLS).

Telstra exemplifies a 'core' stock (i.e., the type of stock that should make up the base of a diversified portfolio) with its brand recognition, market capitalisation and balance sheets. Similarly, Coca-Cola Amatil (ASX: CCL), despite its huge presence both locally and overseas, appears to have been sold off by short-term investors focused on making a quick buck.

Another long-term stock that has been forgotten by investors focused on the here and now is Cochlear (ASX: COH). Despite the increased presence of a Chinese competitor and doubts over its new product, Nucleus 6, Cochlear has been producing first-class hearing devices for decades and will continue to do so. This is the perfect investment for Foolish (capital 'F') investors because it gives us a chance to buy cheap and let profits run for years to come.

Another stock I have been adding to my portfolio is Challenger (ASX: CGF). When I first considered an investment case for the company, back in July, it was cheap. Since then it has climbed nearly 50% but still operates on low multiples and pays a good dividend. If you want to take advantage of the increasing number of retirees (thanks to the baby boomer population entering retirement), Challenger looks well positioned to do so.

Finally, no diversified portfolio would be complete without a few 'riskier' stocks, highly leveraged to growth. Two stocks I've decided to back are Medusa Mining (ASX: MML) – a gold miner from the Philippines – and Allied Healthcare (ASX: AHZ), a diversified healthcare stock that will face significant revenue increases once its CardioCel technology hits markets worldwide.

Foolish takeaway

Although many blue chip stocks are overpriced, many investors can still grab a hold of some quality long-term dividend payers at a discounted price.

Motley Fool contributor Owen Raszkiewicz owns shares in Cochlear, Challenger, Medusa Mining and Allied Healthcare.

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