4 blue-chip stocks to buy and hold for a decade

With news and media repeating on a 24-hr cycle, the same messages and views begin to shorten our attention span. We can become too concerned about issues that may have little direct impact upon our lives and financial plans.

This is a time when you should step back, turn off the noise and focus on where you want to be in ten or twenty years.

Here are four blue-chip stocks that can stand the test of time and be your dividend income foundation over the next decade. They have good growth prospects as well as track records for solid dividend payments.

1.  Woodside Petroleum Limited (ASX: WPL)

The energy producer has slipped under $40 for the first time since April this year. It could go a bit further before it finds a firm bottom. At a time when it isn’t starting any major project and is still assessing how to proceed with its Browse LNG project in WA, the weak share price is raising the dividend yield to 5.8% fully franked. It has billions in extra funds to set out on a number of developments so it won’t stay idle for long. Pick this one up in the quiet times.

2.  Telstra Corporation Ltd (ASX: TLS)

The telecommunications company will be putting its surplus billions to use abroad as it invests to transform itself into an enterprise business solutions provider and telecom leader in the cloud computing space within the Asian region. Its stock pays a 5.6% yield fully franked.

3. Suncorp Group Ltd (ASX: SUN)

The insurer and bank company has rewarded shareholders with capital returns and special dividends for the last three years in a row. As it streamlines its business structure, it expects to realise even more savings. Suncorp has stated that it intends to return excess capital to shareholders when possible. Investors can get a huge 6.0% fully franked yield from the stock now and then look forward to dividend payment increases over the coming years.

4.  Australia & New Zealand Banking Group (ASX: ANZ)

This ANZ bank pays a 5.4% yield fully franked. Of the big four banks, it is expanding the most into South East Asia where developing economies offer many financial service opportunities over the next decade. Newly opened economies like Myanmar and Cambodia will be needing international funding and financial expertise to grow business and industries, similar to Vietnam 20 years ago, so ANZ can play a major role in the region.

There are also smaller companies that can pay equally high, if not higher, yields. In addition, since they are not large-cap stocks, they have room to grow at a faster rate. To give one example, our top analyst, Scott Phillips, has just named his #1 dividend-paying stock for 2014-2015. With solid growth prospects and a fat, fully franked dividend, this ASX stock could be a huge winner for your portfolio.

If you’re interested in knowing its name, just click on the link below, enter your email address and we’ll send you a FREE report on his top dividend stock idea for 2014 – 2015.

The Motley Fool’s #1 dividend-paying stock for 2014-2015


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.