The current low interest rate environment continues to drive demand for top quality dividend stocks.
This has pushed the share prices of many of Australia’s top 200 companies included in the S&P/ASX 200 (ASX: XJO) (Index: ^AXJO) to all-time highs.
However, look a little further down into the S&P/ASX 300 (ASX: XKO) (Index: ^AXKO) and there are a number of promising opportunities for new investors entering the market.
Here are three future blue chip stocks you can add to your watchlist and, if you think the price is right, to your portfolio…
- Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is a diversified holding company which has been listed on the stock exchange for more than 100 years. It currently holds strategic equity positions in companies such as TPG Telecom, New Hope Coal, Ruralco and Brickworks. Whilst it’s a moderately slow grower, Soul Patts is a great defensive business which has a proven ability to go the distance for investors. It’s currently offering a 3.3% fully franked dividend.
- Automotive Holdings Group Ltd (ASX: AHE) is Australia’s leading motoring and logistics group. The $1.3 billion company continues to post strong growth in the face of tough consumer confidence as affordability for new and used vehicles increases. Despite its shares climbing just 10% in the past year, its reliable dividend is tipped to continue rising in the year ahead with analysts forecasting a payout equivalent to a yield of 5.3% fully franked.
- Credit Corp Group Limited (ASX: CCP) is our country’s leading receivables management company, or debt collector. Shares of the $510 million company took a beating during the Global Financial Crisis but have clawed their back from less than 50 cents in 2009 to around $11.00 today. With a thick ledger book, loan portfolio and long-term overseas growth strategy, Credit Corp is forecast to increase dividends healthily in the coming years. It currently yields 3.8% fully franked.
Where to invest $1,000 right now
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.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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