What steps are important to reach your financial goals and well-funded retirement?
Like the old saying, “the journey of a thousand miles starts with one step”, building up your wealth by investing takes a lot of little steps. Here are three to start you out and 2 of the best blue-chip stocks for 2015 to get you started.
First, you want to put together a group of stocks that pay big and reliable dividends consistently. The quality of the stock and company is very important because a shaky one could cut or interrupt dividend payments.
Secondly, check the track record of a company’s past dividends. Are they rising each year? If you see big ups and downs or even no dividend payment in some years, then future payments and returns could be just as unstable. You are basing your future income on these stocks, so you don’t want your rate of return to fall.
Finally, reinvest your returns. If you take the returns and pay for a vacation, car or something even bigger, that’s your call. But any investment income reinvested gives you more shares that pay you more dividends. You can use the power of compounding to accelerate your wealth creation.
Stick with your used car a little longer and your future retiree self will thank you.
Woodside Petroleum Limited (ASX: WPL) is one of the best blue-chips for dividends. The energy producer has a long-term business profile for reliable dividend payments. World energy demand is always growing and the company is based near some of the biggest developing nations like China and India for future market expansion. The stock pays a huge 6.6% fully franked yield, higher than all the big four banks currently.
Another great blue-chip stock is Macquarie Group Ltd (ASX: MQG). The investment bank has seen its earnings climb thanks to the rising international financial markets like the US. More customers are entrusting the bank with their investment funds to grow them, which helps generate more dollar returns and management fees. You can benefit from their success as a shareholder as well. The stock has a big 4.8% yield partially franked. The world economy is steadily improving, which is great for Macquarie’s overseas investments.
These 3 stocks could be the next big movers in 2020
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.*
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*Returns as of 6/8/2020
Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned.
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