Woodside Petroleum Limited, Coca-Cola Amatil Ltd, Australia and New Zealand Banking Group: Should you buy?

Sometimes we are our own worst enemies when it comes to investing.

The US fund management company Fidelity Investments conducted a study of its clients’ returns over the long term. One of the most surprising results was the accounts which performed the best were…

…the ones that the clients forgot they had with Fidelity.

Through forgetfulness, the accounts weren’t actively traded, nor did the client bail out when the market tanked during the GFC for example. Previous investing decisions weren’t second-guessed and undone with “hot” stock ideas.

We espouse a “buy and hold” investing style of quality companies, but this de-facto style might be called “buy and forget trading”. I wouldn’t suggest this as a strategy. Still, it does go back to simple ideas of having time in the market to let investments truly grow.

Here are three stocks which you may readily know that could help your retirement with dividend income. Also, find out about one other lesser-known company that could give both dividends and growth.

—   Woodside Petroleum Limited (ASX: WPL) is beginning to make news about new oil and gas regions in Africa it is buying into for its development pipeline. The $35 billion energy company is back on the acquisition trail and is also looking at sites in Indonesia where it could use its new floating LNG plant technology. Investors can take advantage of its big 5.4% fully franked yield. Woodside has a good track record for increasing dividends over the past ten years.

—   Coca-Cola Amatil Ltd (ASX: CCL): The bottler and distributor of Coca-Cola in Australia and five neighbouring countries is down near multi-year lows, which has made its yield 5.3% fully franked. The company plans to combat lower profits with a business restructuring. It may take some time to see the full benefits, yet that may present itself as a buying opportunity for investors with foresight.

—   Australia and New Zealand Banking Group (ASX: ANZ) is possibly priced high like the other big four banks, but if you are looking for long-term growth, it is probably the best candidate. Expansion into Asian financial services is a high priority for ANZ, which is probably the most advanced of the big four banks in developing business in Asia. Its stock offers a 5.1% fully franked yield.

As these blue-chip stocks could make a firm foundation for portfolio income, having a number of growth stocks rounds out the mix. There is one more stock, as I mentioned earlier, that is not widely followed and may be relatively new to even Foolish readers.

With impressive results recently, it looks to be on a clearer pathway of future earnings growth than these three stocks. Combined with a reliable growth record, this small-cap stock was dubbed The Motley Fool‘s Top Stock of 2014-2015.

The Motley Fool‘s top analyst team has written a free report to share with all interested investors.

If this is you, simply click on the link below and enter your email address – it takes less than 30 seconds – and we’ll send it to you, completely FREE!

The full scoop on our #1 ASX pick - yours FREE

It's not too late! The Motley Fool has issued a firm "BUY" rating on this small but ultra promising ASX company... and you can get the name and code FREE right now. Click here for your free copy of "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.