As an individual, I have a number of benefits over institutional and foreign investors. For example, I don't have to explain my investments to clients nor do I need to worry about currency transfers or meeting yearly benchmarks.
In addition I can claim franking credits on most dividends and, if I do my bidding inside a self-managed superannuation fund, I'll pay minimal tax on capital gains.
Make a MILLION in the Aussie stockmarket
It's no wonder the Australian stockmarket created 43,000 new millionaires in 2013.
The Australian stockmarket is cooking up so many millionaires that even Gordon Ramsay cannot complain about this kitchen.
With a juicy fully franked steak, pinch of economic growth, tablespoon of increased house prices, sprinkling of capital gains and a tax agent who doesn't double dip, it's fair to say Australia is the lucky country.
$10,000 to these five stocks
At the moment, I'm fully invested in Australian shares, but I believe I can afford to be given my risk profile and age.
But if I was given $10,000 to invest in stocks today there's still a number of ASX retailers I'd gladly top-up on or add to my long-term portfolio.
1. Cash Converters International Ltd (ASX: CCV) is more than Australia's best second-hand goods dealer. Cashies has a growing payday loans business, all-in-one car finance business and boasts an increasing international footprint. It also pays a great 3.6% fully franked dividend.
2. Breville Group Ltd (ASX: BRG) is also pursuing an international expansion in both the UK and US markets. Despite its potential for long-term earnings growth the stock trades at a reasonable valuation and pays a 3.1% fully franked dividend.
3. Coca-Cola Amatil Ltd (ASX: CCL) probably isn't what most of us would call a retailer but I consider it to be because of its popularity with everyday Australians, and presence on supermarket shelves right around the world. It is forecast to pay a 4.8% partially franked dividend.
4. Reject Shop Ltd (ASX: TRS) not only sells at a discount, it trades at one too. Despite analysts forecasting a drop in earnings in FY14, it is forecast to pay a 3% dividend fully franked.
5. RCG Corporation Limited (ASXL RCG) is the owner of The Athlete's Foot and exclusive distributor of brands such as Merrell, Saucony and much more. It is forecast to pay a 6.6% fully franked dividend in the next year.
Our number 1 dividend stock – FREE!
All of these companies are worthy of a spot in savvy long-term investors' portfolios. My favourite pick of the bunch is Cash Converters, but for those more risk-averse investors Coca-Cola Amatil stands out as a compelling long-term buy at its current price.
