5 core stocks to build a $1 million portfolio

Looking for quality stocks to stuff in your portfolio?

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published May 27, 2014 11:03 am AEST

$1 million seems to be the minimum most people will need for a comfortable retirement in future.

The best way to get there is by investing in some core quality stocks, adding some high-potential growth companies with possibly a small number of speculative stocks.

Here's five core stocks you need to have in your portfolio.

Coca-Cola Amatil Ltd's (ASX:CCL) has had a horrible run lately, struggling with competitive pressures, as well as dominant supermarket retailers. Add in SPC Ardmona's woes, negative currency movements and Coca-Cola Amatil has its head into the wind. The good news is that most of these issues are likely to be temporary, and at current prices, possibly the cheapest you are ever going to get this company's shares.

Telstra Corporation Ltd (ASX: TLS) recently signalled that mobile subscriber growth would slow. While it is one of the main drivers of growth for the telco, Telstra has plenty of other levers it can pull to generate rising cash flows. Add in the solid fully franked dividend and what more could you want?

CSL Limited (ASX: CSL) never looks cheap, and that's a testament to the quality of the company and its management. The blood plasma products producer has significant global market share and rising demand for its products around the world.

Insurance Australia Group (ASX: IAG) is one of Australia's best known insurers with brands including NRMA, CGU, SGIO and Swann insurance. The recent acquisition of Wesfarmers insurance underwriting business will likely boost earnings, and it currently pays a fully franked dividend yield of 6.4%.

Last but not least, is Woolworths Limited (ASX: WOW). Arguably Australia and New Zealand's premier supermarket retailer, Woolies is expanding into home hardware – while its liquor, hotel, petrol station and discount variety stores continue to grow.

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