Westfield Group, Telstra Corporation Ltd & Amcor Limited: 3 stocks to buy today

The tech stock sell-off acts as a timely reminder of the importance of holding blue-chips.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The US equity markets have taken a battering over the last month or so. Investors have grown cautious of the lavish valuations of the nation’s tech or biotech corporations like Facebook Inc (NASDAQ: FB) or Priceline Group Inc (NASDAQ: PCLN) which saw the NASDAQ and Dow Jones both plummet. Although the Australian stock market coped rather well through the sell-off, the period of global volatility has acted as a timely reminder of the importance of holding a number of blue-chip corporations within your portfolio.

Blue-chip corporations help to form a solid foundation for your portfolio and can act as a safeguard against the market’s vicious mood swings. As investors grow cautious of other growth or speculative stocks, they often scramble towards the larger corporations given that they are considered to be more ‘defensive’ in nature.

As is the case with any quality company, the best time to buy these blue-chips is when the market isn’t so optimistic regarding their prospects. That is why Westfield Group (ASX: WDC) would be an excellent buy right now. The company’s shares have retreated from their high of $12.55 to today’s price of just $10.65 based on concerns for the future of the bricks-and-mortar retail industry. However, the group is divesting from non-core assets to instead strengthen its more iconic shopping centres which will help drive its earnings for years to come. Prospects for its Westfield London and World Trade Centre (New York) centres are particularly intriguing. Its 4.9% dividend yield is the icing on the cake.

Telecommunications giant Telstra Corporation Ltd (ASX: TLS) is another stock which you should strongly consider. In addition to its bumper 5.6% dividend yield, the telco’s superior customer service levels continues to attract customers from rivals such as Optus, owned by Singapore Telecommunications Ltd (ASX: SGT) or Vodafone, part-owned by Hutchinson Telecommunications (Aus) Ltd (ASX: HTA). The company has admitted that mobile growth will inevitably slow as competition improves but it will continue to benefit from society’s increasing reliance on broadband services.

Also deserving of a position in your portfolio is global packaging company Amcor Limited (ASX: AMC). While it has delivered strong returns over the last five or so years, it will benefit as the global economic outlook continues to improve and when the Australian dollar inevitably falls against the US greenback.

Foolish takeaway

Each of the companies mentioned above are well-positioned to provide your portfolio with solid returns over the long-run.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »