Shares are riskier investments than term deposits and savings accounts. However, thanks to decades of outperformance, the added returns from shares have proven to be worth the risk.
However, although 55% of investors believe the only way to invest successfully in the sharemarket is over the long-term, too many new investors have the wrong expectations for what the sharemarket can deliver. Buying great — proven — businesses and focusing on the long-term is, in my opinion, the best way to be successful.
Indeed, while the prices of blue-chip shares can be volatile day-to-day, and at times will remain depressed for extended periods of time, so long as you remember that stocks are just part ownership in a much larger business, you'll do ok.
Here are four great dividend-paying Australian businesses listed on the ASX you could consider owning today.
- Telstra Corporation Ltd (ASX: TLS) – Telstra is the leading telecommunications carrier in local markets. Telstra has a dominant position in mobiles, fixed internet, network applications and machine-to-machine communication. An expansion into Asia and Australians' increasing use of smart devices bode well for greater returns from Telstra shares over the long-term.
- Flight Centre Travel Group Ltd (ASX: FLT) – Shares of Flight Centre slumped earlier this year as investors grew concerned about the company's growth in local markets. Although shares in the company have bounced back in spectacular fashion, it appears very cheap — even at today's prices.
- Coca-Cola Amatil Ltd (ASX: CCL) – CCL as Australia's and five neighbouring countries' bottler and distributor of Coca-Cola products, has had a tough run of late. Down from over $15 in 2013 and currently trading at $9.27, investors have grown increasingly worried about the rise of the health-conscious consumer. Nevertheless, at current levels there may be value in the company's shares.
- Woolworths Limited (ASX: WOW) – Woolworths is another prominent Australian retailing business to have come under threat in recent years. Despite shares falling heavily in the past 24 months. However, the company is seeking to reinvigorate its grocery offering and resurrect the prospects of its flailing Masters Home Improvement business. I'm not willing to bet against it at today's discounted prices.
