Security and a steady income flow are two of the most important factors for investors approaching retirement. Although no stock is 100% risk-free, here are four rock-solid blue chip stocks that would suit investors in retirement and offer them both growing earnings and dividends.
- Telstra Corporation Ltd (ASX: TLS) is the stock investors should call upon for reliable dividends and solid growth prospects. It offers a juicy 5.5% fully franked dividend yield (all dividends mentioned in this article are based on 2015 forecasts) and while it already dominates the local market, it has plenty of expansion opportunities overseas too.
- BHP Billiton Limited (ASX: BHP) is the sturdiest stock you will find from the mining sector thanks to its high level of diversification between operations. It offers a fully franked 3.6% dividend yield and is well placed to benefit from soaring demand for coal and potash in the ultra-long term.
- Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) boasts a very similar business approach to Warren Buffett's investment conglomerate Berkshire Hathaway. While it is well diversified between sectors, it has a strong reputation for investing in excellent companies early in their lives. The company can easily fund its dividend payments out of the dividends it receives from its various investments. It yields 3.4%, fully franked.
- Coca-Cola Amatil Ltd (ASX: CCL) has had a rough 12 months but the long term is still looking strong. A strategic review is being undertaken to remove costs and improve productivity and it seems the worst of the conditions may now be in the past – particularly with shares now trading at just $9.45. The distribution per share is expected to drop to 51c in 2015, which still gives it a yield of 5.4%.
