Here’s why Telstra, Macquarie and Coca-Cola Amatil look a profitable temptation

These stocks appear to be great value for long-term investors.

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If you’re in the market for high-yielding dividend stocks, look no further than Telstra Corporation Ltd (ASX: TLS), Macquarie Group Ltd (ASX: MQG) and Coca-Cola Amatil Ltd (ASX: CCL). Each stock has a different story to tell and each holds significant value for long-term investors.

Telstra

To investors, Telstra is renowned for a superior dividend and, to customers, for quality service and superior product offerings. However, it could equally be as well known for its growth prospects.

Telstra is divesting its sluggish legacy businesses such as Sensis, CSL and fixed line copper networks and becoming a more agile telecommunications company. Its Network Application Services (NAS) and International divisions are growing rapidly, whilst its mobile and fixed data services continue to dominate the Australian market and provide a platform for overseas growth. It trades on a trailing dividend yield of 5.3%.

Macquarie Group

It’s any wonder how Macquarie Group’s shares can trade so cheap while so many of the big banks (with arguably less growth potential) have soared in value and become overpriced. As global markets improve, Macquarie Group’s earnings can be expected to jump.

Using Morningstar’s analysts’ consensus estimates, in FY14 Macquarie’s earnings and dividends per share are expected to total $4.15 and $2.97, respectively. This puts it on a forward price to earnings ratio of 14 and forecast dividend yield of 5%.

Coca-Cola Amatil

As a result of increasing labour costs, intense overseas competition and a high Australian dollar, CCA’s earnings have fallen in recent years. Some investors have fled while others are beginning to recognise the current situation as an opportunity to pick up shares in this great company at modest prices.

At $9.48, CCA shares can be considered a buy for both value and income-seeking investors. With an estimated 4.7% dividend, investors can enjoy the steady stream of distributions while they wait for the company to move past the short-term headwinds.

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

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