3 blue chip dividend stocks to hold in your retirement

Great income and growth prospects are important!

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Infrastructure and transport assets have typically been good performers for investors with a long-term investment view. The following three stocks look like great long-term investments and provide good income too!

Transurban Group (ASX: TCL) hit the headlines earlier this year when it announced the $2.8 billion purchase of the Queensland Motorways toll road network. The network will be added to the company’s existing and more mature Victorian and New South Wales networks. The Queensland purchase could well be a game-changer for Transurban over the long term as the Queensland market is growing faster than that of other states and the network is still only operating at 50% capacity. Transurban is currently offering a 5%, partially franked dividend, which is expected to grow fairly strongly over the next four to five years.

Westfield Retail Trust (ASX: WRT) has been in the media spotlight lately due to the controversial vote to combine all Westfield Australia and New Zealand assets into one company. Almost regardless of the outcome of the vote and way that the split proceeds, Westfield Retail Trust will remain a great long-term income and infrastructure stock due to its high-quality shopping centre assets. Westfield’s flagship centres include Bondi, Sydney CBD, Doncaster, Chermside, Carindale and Marion. Any drop in the share price could be a good opportunity to jump in and benefit from the company’s 6.2% dividend yield.

Toll Holdings Limited (ASX: TOL) has announced a restructure of the company’s Australian operations which is expected to save between $10 and $12 million per year. The savings are expected to help boost net profit by up to 10% in FY15 to over $300 million. Unlike Transurban and Westfield, Toll operates in a much more competitive industry. Toll is Australia’s largest provider of logistics services, but with multiple players in the industry competing for less work in a weak economic environment, it could well become a race to the bottom. Analysts though expect demand to pick up in coming years which should benefit Toll and any improvement in its offshore operations will provide a welcome boost to profits too. Toll currently delivers a mostly franked 5.1% dividend yield.

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Motley Fool contributor Andrew Mudie does not own shares in any companies mentioned. You can find Andrew on Twitter @andrewmudie

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