Investing in dividend stocks is one of the greatest ways to bolster your portfolio and turbocharge your returns in the long-run. But a decent yield isn't the only factor that needs to be considered when making an investment decision.
Investors also need to identify companies that are capable of maintaining – and growing – that dividend whilst also being capable of delivering strong capital gains.
With interest rates now tipped to fall as low as 2.00% in 2015, here are five excellent dividend stocks investors should consider adding to their portfolio today.
Coca-Cola Amatil Ltd (ASX: CCL) has had a rough couple of years, but 2015 could be much better for shareholders. A strategic review has highlighted ways to improve productivity and drastically reduce costs while a firmer focus on marketing should help strengthen the brand's image. At $9.35, the stock is tipped to yield 4.3%, franked to 75%.
RCG Corporation Limited (ASX: RCG), the company behind The Athlete's Foot chain, could be a real 'shoo-in' for investors over the next 12 months and in the years to follow. With decent growth prospects, the stock is also offering a compelling fully franked 6.5% dividend. Grossed up, that's a yield of 9.3%!
Woolworths Limited (ASX: WOW) might not possess the same growth prospects as the other stocks on this list, but its incredible track record and secure outlook make it well worth holding onto for the ultra-long term. The stock is trading at a 22% discount to its 52-week high and offers a 4.8% dividend, fully franked.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has often been referred to as Australia's answer to Berkshire Hathaway, the multinational conglomerate holding company run by legendary investor Warren Buffett. Soul Patts, as it is often referred to as, maintains excellent diversity and is not only a safe bet moving forward, but also a reasonable yielding one. At $13.70, it yields around 3.4% which should grow steadily over the coming years and decades.
Collection House Limited (ASX: CLH) is a debt collection business with a terrific track record and fantastic long-term potential. While it is in the process of relocating into a much larger office (to accommodate future growth), it's tipped to yield 4.2% in the 2015 financial year, fully franked.
There's one more dividend stock which our top investment advisor believes is an even greater bet for investors in 2015.
