MENU

5 stocks to retire on… rich!

Some people think the stock market is a big gamble.

Who knows, they could be right…

However what they probably don’t know is the Australian stock market has returned, on average, 12% per annum since January 1900. 12% is a great return, no matter what anyone says.

At those rates, in just 10 short years and with profits reinvested, $100,000 turns into $310,000.

Now, that sounds very simple. And it is. But it’s not easy.

In fact, many people fail to beat the market for all manner of different reasons.

Then again, some people do in fact beat it. Convincingly too.

5 stocks to retire on

Even if you don’t enjoy investing or are unwilling to put a majority of your money in the stock market, it’s important to have some exposure.

Here are five companies I’d gladly buy for my retirement portfolio, if I planned on hanging up my boots in 10 years’ time…

1. Coca-Cola Amatil Ltd (ASX: CCL) shares have performed poorly in 2014, down 28% so far. No doubt the company’s management team has an uphill battle if they want to return the company to sustainable profit growth. However, in a few years’ time, the current price could look like a real bargain if they deliver.

2. Slater & Gordon Limited (ASX: SGH) is Australia’s leading personal injury law firm. The company recently begun an expansion in the UK, a market which is five times larger than ours and unconsolidated. At current prices, it presents a great long-term buy and hold.

3. Senex Energy Ltd (ASX: SXY) is an onshore oil and gas producer in Australia’s Cooper Basin. The company does not pay a dividend and its share price has fallen 23% in the past three months. In my opinion this has created a sound buying opportunity for long-term investors, who will benefit from the company’s rising production profile.

4. Collection House Limited (ASX: CLH) is a $270 million receivables management company with operations throughout Australia, New Zealand and the Philippines. It might be small but earnings are stable and it pays a modest but growing 4.1% dividend, fully franked.

5. Hills Ltd (ASX: HIL) is a surprisingly impressive dividend stock idea for long-term investors to consider. Hills has recently completed a transformation from a loss-making steel business to technology provider for the security and healthcare sectors. Analysts are forecasting a 5.6% fully franked dividend in the next year.

Our #1 ASX stock for 2015 – Yours FREE! 

I already own shares in a number of these companies (see my disclosure below) but I'd gladly hold them all in my portfolio. However the Motley Fool's top analyst Scott Phillips has just released his #1 stock pick for 2015 and I think it's a GREAT buy at today's prices! Best of all: You can get his full report on this ultra-promising ASX stock for FREE. Simply click here for your FREE copy... BEFORE the investing crowd gets wind of this!

Motley Fool Contributor Owen Raszkiewicz is long June 2016 $5.41 warrants in Coca-Cola Amatil and owns shares in Slater & Gordon and Senex Energy.

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.