3 of the best blue-chip dividend stocks money can buy

Recent volatility on the ASX has led to many stocks falling in price, thereby improving the yields on a number of sought after blue-chips and creating numerous appealing opportunities for income-seeking investors.

The recent oil price shock along with a number of weak economic data points has led to a pretty significant change in sentiment amongst market participants, which in turn has led to some pretty significant share price falls.

Starting with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) and narrowing down for the largest 100 industrial stocks here are three stocks that at current prices could hold appeal for investors keen for some fully-franked dividend stocks.

  • Australia’s largest retailer Woolworths Limited (ASX: WOW) has had a torrid few months. Since early September the stock has lost 15% of its value and is currently trading just 3% above its 52-week low. While the share price has been falling, the outlook for dividends has remained steady which reflects the defensive qualities of this business. With consensus expecting a pay-out of 145 cents per share (cps) in FY 2015, this equates to a forecast yield of 4.7%.
  • Meanwhile, Australia’s leading travel agent, Flight Centre Travel Group Ltd’s (ASX: FLT) share price is trading less than 2% above its year low based on its closing price on Friday afternoon of $39 per share – the stock has lost over 16% in the past three months. Based on analyst consensus data for FY 2015, a dividend of 163 cps is forecast, this implies a forward yield of 4.2%.
  • Lastly, Australia’s leading listed provider of education services Navitas Limited (ASX: NVT) is once again trading below $5 a share; down over a third in the past six months. Despite losing the confidence of some investors, consensus numbers still show solid growth with a dividend in FY 2015 of 26.3 cps being forecast, implying a yield of 5.3%.

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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned.


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