3 blue-chip stocks for the New Financial Year

The end of a financial year is an excellent time for investors to reassess their portfolio’s performance, and redistribute their capital into new stocks they believe could deliver market-beating returns over the coming year.

With a number of Australia’s most widely held stocks, like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), having thrashed the returns of the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) over the last 12 months, it may be time to look towards other core stocks.

Here are three you should consider for the 2014-15 financial year.

  1. Amcor Limited (ASX: AMC): The global packaging giant has, for a long-time, been a consistent performer for shareholders, and there’s no reason to suggest that won’t be the same over the coming 12 months. While the company generates almost all of its sales revenue from outside Australia, it will surely benefit when the Aussie dollar falls. It also offers a generous dividend yield for income investors.
  2. Telstra Corporation Ltd (ASX: TLS): Although the stock has also been a strong performer in recent years, the telecommunications giant should not be written off just yet. In fact, there are plenty of reasons that would suggest this stock could outperform the broader market for many more years to come. It yields a juicy 5.5% fully franked dividend yield and boasts strong growth prospects, particularly in the Asian markets.
  3. BHP Billiton Limited (ASX: BHP): The mining giant may have dropped in recent times, but it is cutting costs and improving productivity at a rapid rate. Although the plunging iron ore and coal prices could weigh on the stock in the short term, its long term is looking very promising. While the stock currently yields 3.5% (fully franked), shareholder returns are tipped to increase (in the form of a special dividend or share buyback) when the miner’s net debt drops below US$25 billion.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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