Many of the greatest investors in recent history have shown that the best way to build your wealth is by utilising long-term, buy and hold investing. Warren Buffett is often regarded as the world's most successful and believes, "the best holding period is forever."
He's made a name for himself through buying established blue-chip companies at good prices. With that in mind, below are five blue chips which, at the right price, will reward long-term shareholders with generous dividends and steady growth.
1. As our largest toll road operator, Transurban Group (ASX: TCL) has a wide moat around its business. With continual increases in toll prices, road widening and improvement works, there is much to like about its business. It pays a 4.3% dividend.
2. Another infrastructure provider with long-term potential is APA Group (ASX: APA). It has an extensive nationwide pipeline network which connects gas producers to Australian cities and storage facilities. It has a 5.1% dividend yield.
3. Leisure and entertainment business, Ardent Leisure (ASX: AAD) is the name behind brands such as Good Life health clubs, Dream World and Main Event (in the US) just to name a few. It pays a 4.7% dividend yield.
4. Of the big banks, I believe Australia and New Zealand Banking Group (ASX: ANZ) will outperform its peers as its Asian strategy gains traction in the coming decade. It is forecast to pay a 5% dividend in the next year.
5. Telstra Corporation Ltd (ASX: TLS) is a favourite of many Aussie investors for both income and safety. With a huge market share of mobiles and fixed internet coupled with an expansion into Asia, it'll remain one of the best income stocks in the S&P/ASX 200 (ASX: XJO) (INDEX: ^AXJO) for many years.
The best BUY of all
These 5 stocks are bolstered by wide "moats" which give them a competitive advantage over new and existing competitors. This enables them to operate on enviable margins. At current prices I feel Ardent Leisure is good value but I am remaining cautiously optimistic about all their share prices.
