At the right price, National Australia Bank Ltd. (ASX: NAB), Telstra Corporation Ltd (ASX: TLS) and Flight Centre Travel Group Ltd (ASX: FLT) could be three rock-solid retirement portfolio stocks.
After all, the ideal stocks for a retirement portfolio include companies which are large and profitable, and pay steady dividends.
NAB
The National Australia Bank share price has rallied 12% in the past three months and paid a half-yearly dividend equivalent to 3.5% fully franked. Despite the strength in its share price however, there are reasons to remain positive on the bank throughout 2017. For example, although analysts expect the bank to trim its dividend (compared to 2016), the bank is forecast to pay a fully franked dividend in excess of 6% over the full year. Moreover, the bank has cleaned the decks operationally by divesting its U.K assets and some of its insurance business.
Telstra
Many questions surrounding the effect of the rollout of the National Broadband Network (NBN) on Australia's largest telecommunications provider cloud its outlook. While some Internet providers and consumers are set to benefit from the super-fast network, Telstra's broadband will be put on a level playing field with competitors. The good news is Telstra's mobile network is the most comprehensive and it is only getting better. Together with payments from the NBN Co, the company is likely to continue generating strong cash flows and paying a generous dividend to shareholders.
Flight Centre
Flight Centre shares have fallen 15% over the past year as investors grow concerned over the threat of technology. But there is a chance investors are underestimating Flight Centre's ability to withstand the concerns of online bookings, given its extensive retail store network. Bullish investors say that Flight Centre's growth in the U.K. and U.S, together with a push into corporate travel, bode well for long-term returns. Its shares also offer a 4.6% fully franked dividend.
Foolish Takeaway
NAB, Telstra and Flight Centre are established businesses in their respective industries. But there are imperfections in their investment cases, which could provide an opportunity for savvy long-term investors to purchase shares. I think Flight Centre shares appear the best value today but they are potentially the most volatile.
