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Your instant 5 share defensive portfolio

If you want to invest in companies with sound business models, big dividends and sustainable earnings growth. Here are five I think you should know…

1. Slater & Gordon Limited (ASX: SGH) is Australia’s biggest personal injury law firm and has recently begun an expansion in the UK, where it expects to draw 45% of group revenues in FY15. Given it’s a law firm with a dominant market position and room for growth, Slater & Gordon has all the hallmarks of a great defensive company yet has excellent growth prospects moving forward.

2. Shares in Coca-Cola Amatil Ltd (ASX: CCL) have been hit hard in the past few years. However value investors and those looking for a defensive business which will grow modestly over time, will likely see a compelling investment case for CCA. At today’s prices, it is forecast to yield 4.8% with partial franking.

3. InvoCare Limited (ASX: IVC) is Australia’s leading funeral service provider. Over the past 10 years the company has achieved an average annual shareholder return of 18.1%. However the next 10 years look just as exciting. The company has a number of long-term tailwinds at its back and growing international exposure.

4. Recall Holdings Ltd (ASX: REC) is an information management company with operations throughout the world. After being spun out of Brambles Limited (ASX: BXB) last year, Recall’s share price has grown well and enjoyed modest success. In the coming year, analysts are expecting a dividend of 18.7 cents per share, equivalent to a yield of 3.3%.

5. Credit Corp Group Ltd (ASX: CCP) is Australia’s largest receivables management company. The company has recently begun its expansion in the US and although it will likely take some time to yield meaningful profits, the venture could be very rewarding for long-term investors. Shares currently trade quite cheap and offer a 4.2% fully franked dividend yield.

Our #1 dividend stock idea – Yours FREE!

I already own Slater & Gordon and have exposure to Coca-Cola Amatil (see my disclosure below) but I believe all five companies deserve a spot on defensive investors' watchlists. However, our top investment advisor Scott Phillips has just released his #1 stock pick for 2015 and I think the stock is a GREAT buy at today's prices! Best of all: You can get his full report on this ultra-promising ASX stock for FREE.

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Motley Fool Contributor Owen Raszkiewicz happily owns shares of Slater & Gordon and is Long June 2016 $5.41 warrants in Coca-Cola Amatil.   

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