With the ASX starting to lose some ground in the past week, investors are fearing the worst. This leads to the natural tendency of selling shares off and it’s the single biggest investing mistake. If you’ve bought a quality company and your confident with its business model, then you should be happy to hold on to it forever. It’s important to note that these dips occur in every functioning market and provide investors a great opportunity to grab some bargains.
Blue-chips offer the perfect mix of growth and dividends and are crucial components of all investors’ portfolios. So here are four stocks that I’d definitely consider buying if I had $10,000.
1. Retailing giant Woolworths Limited (ASX: WOW) is the owner of brands such as BIGW and the supermarket stores. Its large-scale operations allow it to reap excellent cost advantages and easily drive out competitors. Also, ownership of budget stores like BIGW gives it a countercyclical edge. This means that revenues don’t suffer as much in times of economic uncertainty.
Offering a tasty 4% fully franked dividend yield and an excellent growth track record, I remain bullish on Woolworths’ future outlook.
2. Australia’s largest investment bank Macquarie Group Ltd (ASX: MQG) is an excellent dividend play, given its 4.8% fully franked dividend yield. With booming equity markets and the global economic recovery, Macquarie has an opportunity to capitalise on improving business confidence levels.
Its recent acquisition of ING Investment Management Korea also increases its exposure to the lucrative Asian financial industry, giving it that extra kick for the future.
3. Coca-Cola Amatil Ltd (ASX: CCL) may have the market capitalisation of a blue-chip company, buts its volatile earnings in the past few years suggest something else. The battered beverage manufacturer seems to have lost its touch, falling about 25% in the past year. Despite heavy losses, it’s important to appreciate Coca-Cola’s excellent brand reputation.
With management going full throttle in restructuring endeavours, it won’t be long until cost savings start to materialise. Trading on a cheap price-to-earnings ratio of 15 and offering a 5.9% dividend yield, Coca-Cola offers an excellent long-term buy-and-hold opportunity.
4. Sydney Airport Limited (ASX: SYD) has an excellent track record of providing capital growth. Operating in Australia’s largest city and number one tourist destination, Sydney Airport will have no shortage of user demand. Furthermore, strong growth in the Australian tourism industry will see further long-term tailwinds over the next few decades.
With a guaranteed capacity to cater for all of NSW’s international air traffic until 2033, Sydney Airport is a stock I’d consider buying for the long term.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor Aryan Norozi does not own shares in any of the companies mentioned in this article.