4 big-name income stocks to hold for your retirement

Investing in quality stocks with good yields can achieve some serious money over the long term.

Is it possible to really make a lot of money by share investing over a long period of time?

If you started early around your mid-20s and invested every month similar to socking away money in a bank, you could have a sizeable amount of money by age 65. It all comes down to the rate of return you get and how many instalments you actually make.

Getting a rate like 6.5% annually will keep the compounding growth strong. However, good luck getting 6.5% bank deposit interest these days. Alternatively, the 30-year average gain for the S&P ASX All Ordinaries Index (ASX: ^XAO) is about 7.2% (from 666 in 1984 to 5,432 now), so a long-term investor could have done it through regular share investing and have a big stack of dollar bills now.

On top of that would also come dividend income. You could possibly have an extra 2% – 5% from dividend yield added to your share price gains. That’s why Foolish readers seek out good dividend stocks. Your dividend income could be as much as 40% of your total investing returns over the long term.

Here are some good income stocks paying very generous yields.

Westpac Banking Corporation (ASX: WBC) pays a fully franked 5.2% yield and has a good record for raising dividends.

— Woodside Petroleum Limited (ASX: WPL), the $34 billion oil and gas producer offers a 5.8% yield fully franked.

— Coca-Cola Amatil Ltd (ASX: CCL), the Coca-Cola bottler and distributor in Australia and four nearby countries pays a 5.6% yield partially franked.

— Woolworths Limited (ASX: WOW) has a 3.8% yield fully franked and a long history of raising dividends.

Seriously investing on a regular basis can achieve some serious money. You don’t have to shoot the lights out to be financially successful. You just need to invest in quality stocks paying a good dividend yield. 

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.*

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*Returns as of August 16th 2021

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

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