5 income stocks Credit Suisse thinks may have SUPER returns

Increasing numbers of super and SMSF investments could drive demand in income stocks.

| More on:

We are always encouraging our Foolish readers to buy for the future and build their wealth on stable income producing stocks. Blue-chips are regular favourites amongst the companies we follow.

With superannuation and self-managed super funds, future returns are the name of the game since you have to wait many years until your retirement to get access to the money. Long-term investing isn’t just a nice idea, it is a fact of life for super.

As more people buy stocks within their super or SMSFs, the drive for yield and income will increase, making stocks that can satisfy that demand more sought after. With regular share trading, nimble investors can buy stocks now that other investors will want for their future wealth.

As reported in the Fairfax Media, Credit Suisse analysts identified five stocks that could be attractive over the mid to long term for this investing idea.

—  Perpetual Limited (ASX: PPT)

The fund manager has a 3.3% dividend yield. Its share price has grown strongly as domestic and international financial markets have risen to new multi-year highs.

—  Flight Centre Travel Group Ltd (ASX: FLT)

The travel and flight reservations company is revitalising its domestic market franchise and expanding into major travel markets in the US and UK. The stock has a 3.2% yield.

—  Fairfax Media Limited (ASX: FXJ)

Owner of newspapers like The Australian Financial Review and The Sydney Morning Herald, as well as operator of the real estate website domain.com.au, the print and digital media company is making changes to its structure to turn around a drop in business. If successful, earnings and dividend income could improve.

—  Myer Holdings Ltd  (ASX: MYR)

For one of the leading department store companies, retailing has been tough recently. In addition, its attempt to merge with David Jones Ltd (ASX: DJS) was disrupted by a surprise foreign takeover offer for its rival. The stock may be down, but its dividend yield is an astonishing 8%.

—  Caltex Australia Limited (ASX: CTX)

The oil refiner is selling off and converting assets as it adjusts to Asian refinery competition. It still has a big footprint in Australia and a well-known petrol brand. It has a 2.4% dividend yield, but with business restructuring changes, profits are forecast to improve.

You have the option of buying these stocks for your own future, or prepare them for potential sale to other yield-hungry super owners for nearer-term returns.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

More on ⏸️ Investing