Investing through a market cycle isn't easy but psychologically its helps when the companies you own, have proven they have can stand the test of time.
When prices are falling around you, irrational investment decisions can be made. That's why it pays to have a solid foundation, built by established blue-chip companies in your investment portfolio.
Three companies which have stood the test of time, dominate their respective industries and are currently offering attractive ultra-long-term buying opportunities are Coca-Cola Amatil Ltd (ASX: CCL), BHP Billiton Limited (ASX: BHP) and Computershare Limited (ASX: CPU).
Coincidently all three companies will benefit from a lower Australian dollar.
In recent years Coca-Cola Amatil has been unable to keep pace with the S&P/ASX 200 (INDEXASX: XJO) as its profits fell hard. The distributor of Coca-Cola products to Australia and five other nations, has been adversely affected by intense levels of competition, a resilient Australian dollar and rapidly increasing wage rates in Indonesia – a key growth area for CCA. However, its lower share price could present as a solid long-term buying opportunity. Analysts are forecasting a 4.6% partially franked dividend.
Shares in BHP Billiton, the world's largest mining company, have also fallen throughout 2014 as the price of iron ore, one of its major revenue drivers, plummeted. However, unlike some of its rivals, BHP remains well diversified and this is reflected in analysts' forecasts for earnings and dividends per share over the coming years. It is expected to pay a 3.8% fully franked dividend in FY15.
Lastly, Computershare is the name behind many shareholder services. Operating in more than 20 countries and boasting more than 16,000 clients, Computershare's services attract some of the biggest and best local and international companies. Although a very defensive business, Computershare is forecast to grow earnings strongly in coming years. It currently trades on a forecast dividend yield of 2.6% with partial franking.
Our #1 dividend stock idea – Yours FREE!
