Earlier today, I identified three ASX dividend stocks that I think are a sell.
In this article, I've included three dividend stocks I would be happy to hold at today's prices.
Indeed, I currently own two of them in my portfolio.
Before we get to the names of those stocks, first ask yourself what makes a good dividend stock.
If you're investing long-term I think these six characteristics are essential:
- A competitive advantage
- Good margins
- Defensive or sticky revenues
- A market-leading position
- Capable managers
- A robust balance sheet
I think these next three companies tick most – or all – of that checklist.
- Telstra Corporation Ltd (ASX: TLS) is my favourite dividend stock on the ASX. However, as I recently opined, it's probably not in the buy zone for new investors. While I'll agree that investors could do far worse than add it to their portfolio, I'm being greedy and waiting for a price closer to $5.00 before hitting the buy button. At current prices, Telstra yields a fully franked dividend of 4.8%.
- Flight Centre Travel Group Ltd (ASX: FLT) is arguably a good buy today, for the long term. Questions could be raised over the durability of its competitive advantage. However, if you've ever tried to book a semi-complex holiday or business trip entirely online, you'll recognise the value of having the large store network filled with helpful agents at your disposal. While a fall in consumer confidence could hurt Flight Centre over the short to medium term, it looks a buy for long-term investors given its local market dominance, and overseas exposure. With a huge cash balance, it offers a 4.6% fully franked dividend yield.
- Coca-Cola Amatil Ltd (ASX: CCL) has proven to be a contentious focal point in the Australian investing community of late. The distributor of Coca-Cola and Beam branded products is facing its fair share of headwinds. However, under the reign of fresh CEO Alison Watkins, the beverage bottler won't have to shoot the lights out to justify its current market price. Coca-Cola Amatil shares are forecast to pay a 4.5% majority-franked dividend in the next 12 months.
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Depending on your assessment of the risks, each of these popular ASX stocks could be a standout buy today. While I already own two of them there's another ASX stock I think is an even better buy…
