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4 stocks for a RICHER retirement

Although companies such as Woolworths Limited (ASX: WOW) and Commonwealth Bank of Australia (ASX: CBA) offer excellent dividend yields and are considered some of the safest investments in the S&P/ASX200 Index (ASX: XJO) (INDEX: ^AXJO), their high share prices mean they’re not standout ‘Buys’.

Whilst a retiree’s portfolio should consist of fewer risky stock picks and a greater proportion of core stocks, it’s important to remember no stock is a buy at any price. So whilst the thought of buying the two aforementioned companies could seem like a good idea, investors would be advised to consider other cheaper, well known stocks. Here are four well-priced retirement stock ideas for the next 10 years and beyond.

1. Slater & Gordon Limited (ASX: SGH) is Australia’s leading Personal Injury (PI) law firm with a three pronged growth strategy. With a well-executed expansion in the UK, growth into Personal Legal Services (PLS) and ongoing dominance in the local PI market, Slater & Gordon’s current share price could prove undemanding in the medium-to-long term.

2. Telstra Corporation Ltd (ASX: TLS) is an obvious example of a core stock which holds a significant position in many Australian investors’ long-term portfolios. With a generous 5.4% dividend yield, industry tailwinds and an overseas expansion, Telstra could be a worthy addition to your portfolio.

3. Coca-Cola Amatil Ltd (ASX: CCL) is another long-term buy to hold company. Although analysts are forecasting a fall in earnings per share in the coming year, it is expected to pay a 4.8% dividend with partial franking, before returning to earnings growth in FY15.

4. Webster Limited (ASXL WBA) is involved in walnut and onion production for international customers. It can be considered a riskier stock selection, however since 2010 (when it undertook a strategic review) Webster shares are up over 100% and, in the past two weeks alone, they’re up a whopping 38%. With Australia set to become the ‘Food Bowl’ of Asia, Webster appears to be a sensible investment for those seeking agricultural exposure.

A 7% dividend and RAPID Growth

Slater & Gordon, Telstra, Coca-Cola Amatil and Webster all appear to be offering long-term value at current prices. Slater & Gordon is my pick of the bunch (and the only one I own) but it offers a dividend yield of only 1.3% fully franked. I generally prefer companies with 5% plus dividend yields and above average growth.

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Motley Fool Contributor Owen Raszkiewicz owns shares in Slater & Gordon.

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