If you bought shares in Australia's big bank stocks 5, 10 or even 20 years ago and still hold them, pat yourself on the back.
You deserve it.
Because today you'd be sitting on huge capital gains and could be receiving a massive, regular dividend payment. Fully franked, of course.
However investors who missed the boat, need not worry.
There are plenty of stocks on the ASX which may, to some extent, be able to emulate the big banks' success over the next 10 or 20 years.
And you don't have to dig down into the darkest depths of the ASX to find companies which have ample growth potential and are likely to pay bigger dividends, over time.
For example, M2 Group Ltd (ASX: MTU) is a company which could be one of tomorrow's best blue-chip dividend stocks. M2 is the owner of telecommunications brands such as Dodo, Primus, Commander and Eftel. Over the long term I think the business will continue to grow strongly into other retail utility services such as electricity and gas, which should send its earnings and dividends per share higher.
Dual-listed ResMed Inc. (CHESS) (ASX: RMD) is another company with great long-term upside. ResMed develops, manufactures and markets innovative medical products for individuals with respiratory conditions, such as sleep apnoea. Despite already operating in 70 countries, ResMed still has huge potential in a growing market. Analysts are in agreement and expect earnings per share to grow in each of the coming four years.
Lastly, Computershare Limited (ASX: CPU) is already a core stock in many investors' portfolios. However, I think it's worthy of some consideration for those investors planning to retire in the next 5 to 10 years. Computershare is the name behind share market registry services in many international markets. Indeed, its global presence will be one of the driving forces behind its earnings growth in coming years. Although the shares mightn't appear a bargain at first glance, with a trailing dividend yield of just 2.5%, long-term investors should be focused on finding tomorrow's winners, not today's.
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I think each of these companies could make great long-term investments at today's prices. Indeed I bought Computershare shares just last week! However, there's one more ASX stock which I think could be an even better bet for those looking to secure a growing stream of reliable dividends in their retirement, fully franked of course!
The stock I'm talking about was identified by the Motley Fool's top advisor, Scott Phillips. It is a cheap but growing small-cap ASX stock which has a 6.3% grossed-up dividend yield. I think it is a STANDOUT long-term buy at today's prices.
