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3 big dividend stocks for a blue-chip retirement

Dividends stocks are in vogue.

With the RBA’s cash rate at only 2.5% (and possibly going lower) it appears now is the time for savvy, long-term investors to be positioning their portfolios for a sustained low interest rate environment…

Not one which is characterised by poor returns from ‘safe’ investments such as bonds and term deposits.

For investors approaching retirement, the need for well-priced blue-chip dividend stocks is more real than ever. Unfortunately, many of the most popular S&P/ASX200 Index (ASX: XJO) (INDEXASX: XJO) stocks are trading at, or over, fair value.

However, below I’ve identified three blue-chip stocks I’d be very happy holding from today’s prices, for the ultra-long term, for both potential capital gains and dividend income.

1. Computershare Limited (ASX: CPU) is the provider of share registry and behind-the-scenes financial administration services for companies throughout the world. Although its forecast 2.5% dividend appears meagre in comparison to other blue-chips, it is very well priced and tipped to grow both earnings and dividends in the long-term.

2. Challenger Ltd (ASX: CGF) is a leading provider of annuities for Australian retirees and also boasts a growing funds management business. Although it is forecast (in FY15) to pay a 3.5% unfranked dividend, I believe the long-term outlook for Challenger is excellent.

3. Coca-Cola Amatil Ltd (ASX: CCL) is one of the first names people think of when the words “blue chip” are bought up. In the past year, its share price has fallen hard but I believe the company will be able to move past the current headwinds, which have hindered earnings growth and, over time, emerge a stronger company. It is forecast to pay a 5% partially franked dividend in FY15.

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In the near future, I’ll be looking to add both Coca-Cola Amatil and Computershare to my long-term portfolio because, lately, the performance of my small-cap stocks have far exceeded my wildest expectations (in a good way) and contribute well over 60% to my total holdings.

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