Have you ever been torn between wanting strong returns offered by growth companies as well as the safety offered by blue-chip corporations? There's absolutely no reason why you can't have both!
A mistake that many investors make is thinking that blue-chip companies are boring investments that will only ever deliver slow returns while other more exciting stocks are running by screaming "missed opportunity". They think that, although they are necessary to stabilise a portfolio when things get shaky in the market, owning them restricts their ability to buy into "the next big thing".
Sure, a number of Australia's largest corporations like Commonwealth Bank of Australia (ASX: CBA) or Wesfarmers Ltd (ASX: WES) will struggle to grow at exuberant rates given their sheer size, but there are a number of other companies considered to be blue-chips that are often overlooked (and the good news is, they still have plenty of growth to offer)!
One company that shouldn't be overlooked is shopping mall behemoth Westfield Group (ASX: WDC). Its shares have lagged significantly behind the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) in recent years as investors have remained uncertain about the future of the bricks-and-mortar retail industry. However, the company is taking all the right steps to ensure its long-term sustainability and will continue to benefit as consumer and business confidence improves. Its shares are trading at $10.30 and offer a 5% dividend yield.
Amcor Limited (ASX: AMC) is another dominant corporation for you to consider. The global packaging company has delivered fantastic returns in recent years and as the Aussie dollar falls and global economic outlook improves, so will its profitability. Shares are currently priced at $10.43 while you could also enjoy its 3.9% dividend yield.
While the best time to buy shares is when the market throws them away, now is the time to make your portfolio bubble with Coca-Cola Amatil Ltd (ASX: CCL). Although the company's performance in 2013 was poor, the causes appear to only be short-term in nature. With enormous growth prospects in Indonesia, CCA is a company to hold onto for the next decade (or more).
Foolish takeaway
Blue-chips are a vital element to any portfolio, but that doesn't mean you should buy into the biggest and best companies if their shares can't be bought at a reasonable price. Each of the companies mentioned above have proven themselves to be market leaders in their respective industries and possess good growth prospects while also trading at an attractive premium.
