3 Dividend Stocks I’d Buy with $50,000
By Owen Raskiewicz
If I had $50,000 to invest in dividend stocks today, I would look to add a number of reliable companies to my long-term portfolio, with the aim of doubling its size in just 10 years. Here are three I’d buy right now.
- Entertainment: Village Roadshow Ltd (ASX: VRL). Village does everything from blockbuster movies like The Great Gatsby and cinema exhibitions to the running of iconic tourist attractions such as Warner Bros. Movie World, Sea World, Wet’n’Wild, Paradise County and Outback Spectacular. It trades on a trailing dividend yield of 3.3% fully franked but analysts are expecting its payout to jump in coming years.
- Food and Beverage: Coca-Cola Amatil Ltd (ASX: CCL) is the exclusive bottler and distributor of products from The Coca-Cola Company to Australia and five neighbouring countries including Indonesia. A price war between Coles and Woolworths and rival Schweppes coupled with ongoing woes for its SPC Ardmona business has resulted in CCA missing earnings guidance. This has taken the fizz out of its shares. However, this has also provided long-term focused investors an excellent opportunity to buy its stock on the cheap. It trades on a forecast dividend yield of 4.9%.
- Telecommunications: M2 Group Ltd (ASX: MTU). M2 is the owner of brands such as Dodo, Primus, Eftel and Commander. After a spate of acquisitions, the company is now focused on deriving synergies and paying down debt whilst also growing organically. M2 is one of the most obvious opportunities investors have to invest in a quality company for what it’s going to be, not what it has done. For example, in the near future M2 will become a diversified utility provider, offering everything from an electricity and gas connection to mobile plans, internet and home phones. It is forecast to pay a 4.1% dividend, fully franked.
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Each of these dividend stocks are at the top of my buy list and present as viable income alternatives to overpriced big bank stocks. If I were to pick one today, it’d be M2 Group.
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The Motley Fool's disclosure policy is accountable. Of the companies mentioned in his article, Bruce Jackson has an interest in Telstra. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. The Motley Fool does not guarantee the performance of, or returns on any investment. All figures are accurate as of 24 June 2014. Authorised by Bruce Jackson.
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