Although they might not offer the same level of excitement as growth or speculative stocks, blue -chip companies play a vital role in every portfolio. Aside from helping to form a solid foundation and defensive structure, they can also provide decent capital gains and a steady income stream over the long term.
Traditionally, investors have been attracted to companies like Commonwealth Bank of Australia (ASX: CBA) and Woolworths Limited (ASX: WOW) as their go-to blue-chip stocks, but with these two now appearing to be overpriced, investors need to look for more appealing prospects.
Here are three solid blue-chip stocks that investors should strongly consider today…
Westfield Corp (ASX: WFD) only debuted on the ASX recently as a result of the Westfield Group and Westfield Retail Trust restructure. While it has already gained 10% since listing, it is still well worth considering as it offers investors excellent exposure to the recovering US and UK economies. It will also benefit as the Aussie dollar drops, which the Reserve Bank has warned is due to happen.
Telstra Corporation Ltd (ASX: TLS) is another stock investors have often trended towards, in part thanks to its juicy fully franked dividend yield. However, even at $5.33 the stock still has plenty to offer investors. For starters, it continues to attract customers away from rival mobile carriers while the telco also boasts strong international growth prospects. Currently, it yields 5.4%, fully franked.
Although BHP Billiton Limited (ASX: BHP) has rallied strongly in recent weeks, it has still underperformed many analysts' expectations for the year so far. While the stock could remain volatile in the near-term, due to fluctuating iron ore and coal prices, the long term is looking much brighter as it continues to reduce costs and improve productivity. Based on 2015 forecasts, it offers a fully franked 3.6% dividend yield.
An even BETTER dividend stock just for you…
While Westfield Corp, Telstra and BHP Billiton would all make for excellent additions to your portfolio today, they are by no means flying under the radar of investors. Our top analyst recently identified one (very) reasonably priced ASX stock which not only offers a massive 7% grossed-up dividend yield, but could also deliver strong capital gains for years to come…
