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3 dividend shares for your Christmas portfolio

Credit: open-arms

As we approach Christmas, what’s on your shopping list?

Maybe you want a new pair of Peter Alexander pyjamas; a shiny new Apple iPhone or Samsung Galaxy; or – if you’re lucky – a return ticket to your favourite holiday destination.

Chances are, if any of those items are on your shopping list this Christmas, some of the money you pay for the gift will eventually find its way back to the pockets of a fellow Australian, who is a part-owner of a business.

Therefore, my question to you is: If you feel a little guilty spending all that money on Christmas presents, why not buy shares in the companies offering these products and services?

Stock up with these three dividend shares

It can feel daunting to get started in the share market, so here are three of my favourite stocks to consider adding to your Christmas stocking this festive season:

  1. Premier Investments Limited (ASX: PMV)

Premier Investments is run by one of Australia’s savviest retailers. It counts Smiggle, Portmans, Just Jeans, Peter Alexander, Jay Jays, Jacqui E and Dotti among its stable of quality brands. Premier investments has a strong balance sheet, growing international franchises, and pays an excellent dividend.

Source: Capital IQ

Source: S&P Capital IQ

  1. Telstra Corporation Ltd (ASX: TLS)

Telstra is Australia’s leading mobile network operator, broadband provider and more. Therefore, it stands to benefit from the growth in internet-enabled devices and improvements in communications technology more broadly. With an Asian expansion underway, ongoing mobile subscriber growth, and payments from the government’s NBN Co, the outlook for Telstra over the medium-term appears bright.

Source: S&P Capital IQ

Source: S&P Capital IQ

  1. Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is Australia’s leading retail and corporate travel agent. In recent times, the company has come under scrutiny from analysts who believe international giants, such as Booking.com, and innovative tech businesses like Webjet Limited (ASX: WEB) could disrupt its business. However, in spite of this digital threat, Flight Centre has continually proved its worth. Combined with a very strong balance sheet and growing international network, Flight Centre’s current share price looks very compelling.

Source: S&P Capital IQ

Source: S&P Capital IQ

Buy, Hold or Sell?

At today’s prices, I think investors could do far worse than add one – or all – of these businesses to a stock portfolio. It’s important to remember, however, that the share market is a long-term investment vehicle, and not a get-rich-quick ticket – regardless of what ‘chartists’ and ‘technical analyst’ will have you believe.

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Motley Fool writer/analyst Owen Raszkiewicz has a financial interest in Flight Centre and Premier Investments. 

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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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