Coca-Cola Amatil Ltd (ASX: CCL), Telstra Corporation Ltd (ASX: TLS) and National Australia Bank Ltd. (ASX: NAB) are three iconic Australian companies with a global footprint.
In recent years however some of them have proven to be poor investments and shareholders who bought in at the wrong time would be devastated.
Over the past 10 years shares in these three blue-chip stocks have gained 31%, 7.5% and 20%, respectively, versus a 56% return from the S&P/ASX 200 Index (ASX: XJO) (INDEX: AXJO).
However when dividends are included each company has significantly outperformed the market. So the question on every investors' mind is: "Can it continue?"
Here's what I think you can expect from these stocks in coming years.
Telstra
Our biggest telco's shares have performed exceptionally well in the current low interest rate environment as investors went in search of reliable dividend stocks. In the coming years, management are eyeing Asia as a significant growth prospect. They'll likely team up with existing telecommunications companies by leveraging off their local success. However this type of expansion is not easy so shareholders should keep an eye out for half-yearly reports to gauge its progress.
At $5.41 per share, Telstra doesn't come cheap and although I've been bullish on them in the recent past, it's important to remember that no stock is a buy at any price. I've said it before but I wouldn't pay above $5.50 per share. However even at current prices, there's better opportunities out there, as you'll see below.
Coca-Cola Amatil
CCA has recently met with some strong macroeconomic headwinds which have hindered its Indonesian expansion. The group has also been competing fiercely with Schweppes in beverages and facing cheaper foreign imported products in the tinned fruit business SPC Ardmona. Finally, it has also been on the receiving end of Coles and Woolworths' price war.
I believe the issues in Indonesia will pass soon enough and CCA will adjust to business as usual. The supermarket and Schweppes price wars will go on for a while longer so investors shouldn't hope for a rapid turnaround. However at under $9.50 per share I think CCA is a good long-term buy to hold.
National Australia Bank
NAB continues to underperform its major bank peers and has shed 2.4% off its share price since the beginning of 2014. The problem stems, largely, from its troubled UK exposure which includes the Clydesdale and Yorkshire banks and a portfolio of bad commercial property loans.
Until this is sorted I believe the allure of NAB's 8.4% grossed up dividend yield should be avoided.
Buy this DIVIDEND stock before NAB or Telstra
With the exception of Coca-Cola Amatil, I've been reluctant to add these three stocks to my portfolio at current prices. So I've been forced to look for better ASX dividend stocks. And I think we've found one!
