3 blue-chip stocks you need to consider

If you’re in the market for high dividend yields and reputable brand names, than you need to know these companies.

| 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

It should come as no surprise, the S&P/ASX 200 Index’s (ASX: XJO) (^AXJO) terrific run in 2013 has left some stocks overvalued. But the big banks aren’t the only ones trading above all-time highs.

In fact unless you’re willing to invest in the resources sector or look for smaller companies listed on the market, there’s not many well-priced companies left to choose. It means we have to work harder to discover where the value lies.

To make it a little easier for you, here are three top companies which are today trading at modest prices.

1. Resmed Inc. (CHESS) (ASX: RMD) is a biotechnology company involved in the manufacturing and distribution of innovative medical products for individuals with respiratory disorders such as sleep apnoea. Listed on both the Australian Stock Exchange (ASX) and New York Stock Exchange (NYSE), ResMed is a truly global company, servicing 100 countries worldwide. It believes around 20% of the adult population suffers from sleep-disordered breathing, but awareness of the issue remains low. ResMed trades on a forward price to earnings of 19 and a dividend yield of 1.9%.

2. Coca-Cola Amatil Ltd (ASX: CCL) has had a rough start to 2014, already falling nearly 22% on the back of poor results and bleak outlooks for near-term earnings. Despite losing share price, CCA is still the same company dealing in the same high quality products. If you believe the company will still be around in 10 years, now could be the time to capitalise on the setback. At current prices it has a forecast 5.4% dividend yield.

3. Telstra Corporation Ltd (ASX: TLS) is one of Australia’s best dividend stocks. Boasting a market capitalisation of around $65 billion, it is nearly 14 times bigger than its next biggest rival, TPG Telecom Ltd (ASX: TPM). With a 5.5% dividend yield and ongoing growth both domestically and overseas, it could find its way into any portfolio.

Foolish takeaway

The above three companies are priced for long-term success and boast reputable brand names. In addition each have established markets with plenty of room to grow.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. 

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

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 »