Let's face it, most investors invest to provide a comfortable retirement, and if possible, an early retirement. Who doesn't want to retire at 55 with enough cash to sustain a very comfortable lifestyle, with overseas holidays, travel, a new car every so often, and to satisfy most of your wants?
Forget retiring at 70 and trying to eke out a living solely on a government pension, I'm sure most of us would dearly like to avoid that.
If that's you, then you want stocks that you can put in portfolio, with strong growth, decent dividends and that unlikely to go broke anytime soon.
Here are four stocks that could be regarded as 'essential' for your core portfolio…
Insurance Australia Group Limited (ASX: IAG) currently pays the highest dividend yield out of the top 20 stocks listed on the ASX, at 6.4%, and it's fully franked. The company should grow earnings strongly, at least in the short term, thanks to a number of large acquisitions, its strong position in Australia's and New Zealand's insurance industry.
Telstra Corporation Ltd (ASX: TLS) currently pays a dividend yield of 5.4%, fully franked, and that could rise thanks to several asset sales. Telstra is still generating whopping cash flows and analysts and fund managers are tipping the company to buy back up to $2 billion worth of shares as early as next month.
CSL Limited (ASX: CSL) is arguably Australia's best company. By that I mean, it has the potential to reward shareholders for many years, with demand for its blood plasma and other products likely to grow as the world's population grows. Sensible management and a large portion of revenues ploughed back into research and development means this company growth has a long runway ahead of it.
Coca-Cola Amatil Ltd (ASX: CCL) is down in the dumps currently, and may not be able to sustain its 5.9% partly franked dividend. But with the share price down 25% over the past year, now is the perfect time to add some fizz to your portfolio. With a portfolio of strong brands, entry into the beer, wine and spirits market and a new CEO, CCA is likely to see its share price rise substantially over the next 5, 10 and 20 years.
