As exciting as retirement can be, it can also be an incredibly scary time. In addition to needing a steady and growing income stream, you also need to be able to sleep comfortably at night knowing that your investments are safe.
These three stocks could be just what the doctor ordered, with each offering a generous dividend, a solid foundation and, perhaps most importantly, solid growth prospects.
One stock that offers all three of those elements is investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts, as it is often referred to, boasts a very similar business approach to Warren Buffett’s own Berkshire Hathaway Inc. with substantial investments spanning across the telecommunications, resources and building sectors, amongst others. With that sort of diversification under such a solid management team, investors can rest easy knowing their capital is being put to good use, all the while enjoying Soul Patts’ fully franked 3.2% (and growing) dividend yield.
Another company which enjoys absolute market dominance, earnings growth potential and a legendary dividend is none other than Telstra Corporation Ltd (ASX: TLS). While customers continue to make the switch to Telstra from rival carriers like Vodafone or Optus, Telstra is also set to benefit from society’s continued reliance on broadband services. Further, the company has also expressed its intention to be generating at least one third of its revenue from Asian markets by 2020, which could provide investors who buy shares now with enormous upside. Besides, who could complain about the bumper 5.4% fully franked dividend also up for grabs!
Upon retirement, you might even consider using some of this next company’s facilities or services. Gaming business Crown Resorts Limited (ASX: CWN) has plenty to offer consumers looking for a bit of entertainment, as well as investors with its growth prospects and 2.4% dividend yield. Although the yield isn’t as solid as Telstra or Soul Patts, there is certainly potential for it to grow significantly. The company itself is set to receive more dividends from its interest in Melco Crown Entertainment which could, in turn, see Crown improve its own dividend policy.
This ASX stock could make you RICH…
Each of the three companies mentioned above are well established and would all be excellent stocks to hold through retirement. However, there is another company early in its growth story which could also reap incredible capital gains in the long-term…