The joy of the dividend fest we had during August's results season has soon been pushed aside. The banks are entering correction territory and the miners can't shake the iron ore and gold blues.
We have to remember the stock market is just an auction. When you're a buyer, a gloomy market is the best. Prices go down and dividend yields go up.
If you're preparing for your retirement, you want to get good stocks as cheap as possible. You can buy a few more shares with your money and your returns are that little bit higher.
Here are four stocks offering up healthy dividend yields at decent prices.
Woodside Petroleum Limited (ASX: WPL): The company is the largest energy producer listed on the ASX. It has several offshore LNG projects which have enough oil and gas to keep revenue coming for many years. It has a lot of cash available for acquisitions, so it could grow even more. With a yield of 5.6% fully franked and a 14 price-earnings (PE) ratio, you can have steady dividend income for a reasonable price.
IOOF Holdings Limited (ASX: IFL): I have mentioned this stock before, but it still strikes me as a good long-term financial services play. It deals in investment trusts and superannuation administration, which are two areas seeing more retirement investor money flowing in. Analysts forecast about 11% earnings growth annually in the next two years. That's solid growth. Right now, it pays a hefty 5.5% yield fully franked.
Platinum Asset Management Limited (ASX: PTM): This fund manager specialises in international equities, which is very timely now as the U.S. market is going up and ASX is trading sideways. The stock's dividend payout ratio is very high, so if it achieves a good return overseas, shareholders can see a growing dividend. The stock yields 5.5%. Its 18 PE is pretty regular for the company, so it's not too expensive.
RCG Corporation Limited (ASX: RCG): You may not know it by that name, but you'll probably recognise The Athlete's Foot shoe stores it operates. It also distributes many shoe brands like Merrell, Saucony, Cushe, Chaco, CAT and Sperry Top-Sider. In FY 2014, it had its highest revenue and it kept its trend of raising underlying net profit every year since 2007. People still want to buy quality shoes and are willing to pay more for them. It has a whopping 7.6% yield, but only comes in with a 12 PE. The stock may be a better buy than the shoes!
Building that great retirement portfolio means combining the best quality stocks to get your money to work for you. There are others I could add to the list, especially two stocks that even billionaire investor Warren Buffett could even love.
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