MENU

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.

And, right now, there’s one small-cap ASX stock which offers a 7% grossed-up dividend yield and a sound growth strategy! Motley Fool investment advisor Scott Phillips recently hand-picked this ASX dividend stock with outstanding potential. BEST OF ALL: It's yours FREE! Just click here to download your free copy of "The Motley Fool's Top Dividend Stock for 2014-2015" today.

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

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!