3 blue chip stocks to buy now and hold for decades

Buying shares and holding onto them for the long term has time and time again proven itself to be the best way of driving your wealth higher

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Buying shares and holding onto them for the long-term has time and time again proven itself to be the best way of driving your wealth higher.

Look no further than companies like Woolworths Limited (ASX: WOW), which has climbed more than 1,200% since 1993, or Commonwealth Bank of Australia (ASX: CBA) which has returned almost 1,100% since 1991. Those figures aren't even including the generous dividends distributed during those times.

Although they might not deliver those sorts of returns over the coming years, here are three top-of-the-range blue chip stocks you should consider adding to your portfolio today, which could still drive your wealth much, much higher over the coming decades.

1. Based on its current price, the strength of the brand and its bumper dividend yield, it's hard to look past beverage manufacturing giant Coca-Cola Amatil Ltd (ASX: CCL). The stock has plunged 38% over the last 12 months with its profit diving due to the strong Australian dollar as well as a price war with primary rival Schweppes. However, the brand has the support of investing great Warren Buffett and while the problems facing the business appear short-term in nature, now would be an excellent time to buy the shares and never let go.

2. Aside from its reasonable price, there are plenty of other reasons to like Insurance Australia Group Limited (ASX: IAG). While it offers an irresistible 6.1% fully franked dividend yield, it has also delivered shareholders with average annual returns over 14% over the last five years, which far exceeds the returns of the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO). Further, the planned acquisition of Wesfarmers Ltd's (ASX: WES) insurance underwriting business should help grow earnings in the long run.

3. Global packaging business Amcor Limited (ASX: AMC) is another safe bet for your portfolio for the long term. The company demerged from its Australian packaging distribution group Orora Ltd (ASX: ORA) in December and is now focused on increasing its operations in emerging economies, providing it with excellent growth potential (it increased sales in China by 18% in the six months ending 31 December 2013). Amcor will benefit significantly when the Aussie dollar eventually falls while it also offers a bumper 3.7% dividend yield.

Just as good a stock, but even cheaper…

Coca-Cola Amatil, IAG and Amcor are all well established corporations and a buy today could reap you fantastic returns over the coming decades. However, there is another high quality stock that is very early in its growth days which might just double your money over the coming years…

Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd.

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