Every investor needs a firm foundation to build their retirement upon. Some will be fortunate enough to make a lot of money in their careers and save it. Most others will prepare for their golden years with superannuation. Yet still the best option is building your own future wealth on stable, dependable stocks that can pay you reliable dividends. The best among them also increase dividend payments regularly to help you stay ahead of inflation.
These four blue-chip stocks could be a part of every investor's portfolio.
Telstra Corporation Ltd (ASX: TLS) has paid a steady dividend for years as Australia's largest telecom company. The next stage in its evolution is to become a regional leader across Asia in business enterprise solutions and cloud application services. This step will help maintain revenue growth and keep its dividend stable in the long term. The stock yields 4.7% fully franked.
Wesfarmers Limited (ASX: WES) offers a 4.4% yield fully franked. As one of the biggest retailers in Australia with store brands like Coles supermarkets, Bunnings Warehouse and Target, you can imagine this company being in business for decades to come. The retailer has raised its annual dividend every year since 2009. Analysts forecast dividends to grow on average 6% annually over the next several years.
Suncorp Group Ltd (ASX: SUN) has a record of paying special dividends in the last four years. On top of that, it has increased both the interim and final dividends for three years straight since 2012. It raised a great amount of capital over the past five years and is in the middle of a cost-cutting program which could make further capital returns and special dividends possible. The insurer and banker's stock pays a huge 6.00% yield fully franked. Term depositors would enjoy that kind of return in this low-interest rate environment.
Australia and New Zealand Banking Group (ASX: ANZ), the third largest of the big four banks by market capitalisation, has raised its dividend almost 75% since 2009. One of ANZ's strategies for growth is to expand more throughout Asia and in China as these economies are modernising and are in need of developed international financial services. The stock yields 5.0% fully franked and analysts expect dividends to grow in the mid-single digits.
