Buy these 3 shares if you’re retiring in 20 years

A comfortable retirement is one thing that many of us look forward to after a lifetime of work. Here are 3 companies that could go a long way to creating ease and security in your twilight years:


An unusual suggestion, given that this cloud accounting software company is unprofitable and doesn’t pay a dividend, I nevertheless think Xero is shaping up as an interesting dividend possibility over the very long term. With high profit margins, a growing market share, and high potential for reinvesting its profits into itself (in a way that will generate even more profits), Xero could be an attractive dividend-paying blue chip in 20 years.

Washington H. Soul Pattinson and Co. Ltd (ASX:SOL)

This investment company has been around for over 100 years already, so another 20 is unlikely to be a stretch. Family-run, with a long-term owners mindset, ‘Soul Patts’ owns a conglomerate of ASX-listed shares including TPG Telecom Ltd (ASX:TPM)  and other diverse businesses – and has never not paid a dividend. This is exactly the type of business that should look very interesting to prospective retirees.

Challenger Ltd (ASX: CGF)

Challenger Ltd is a provider of financial products like annuities, and operates a fund management business. As such it is sensitive to changes in investment markets – for example, some commentators have written that the bond market will surely take a tumble once US rates start climbing.

However, for those with the ability to look ahead over the next 20 years, Challenger is in a strong position to benefit from the growing amount of money flowing into Australia’s retirement industry. You will probably even use one of its fee-free annuities yourself eventually. Challenger could become meaningfully larger over the next 20 years.

Here are 3 more dividend-paying blue chips that I think any would-be comfortable retiree should have on their watchlist:

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Sean O'Neill owns shares of Xero. The Motley Fool Australia owns shares of Challenger Limited, Washington H. Soul Pattinson and Company Limited, and Xero. 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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