Best Blue Chip

[mista200]

For the time being i am only interested in the longer term outlook 5 years +. At the moment i am just looking to buy into 2 blue chips stocks. My options are..NAB, BPC, QAN or maybe AFI . which of these stocks do you think would be the better optionS?

 

[Smurf1976]

I think you should be asking yourself the questions "what could go wrong with this business" and "what could improve for this business".

If you're only investing in two stocks at this stage then I really do think that you ought to thoroughly understand just what you are investing in, what the upside is and what could go wrong.

Without knowing how much you have to invest, personally I would be looking at buying more than two stocks. Have you thought about buying all four?

I would also be thinking to balance the risks unless you have a firm view on where the overall economy is going. For example, buy one that benefits from strong growth and another that is more defensive. Or one that has natural resources as a major cost and another one that produces them.

Just my thoughts, NOT advice.

 

[noelcran]

i think bhp to be the best in 5 years

 

[salz]

Is BHP Billiton and Optus good?

 

[bvbfan]

BHP you need to consider where the resource cycle is and the fact its at record highs (not sure if that includes pre Biliton days, but adjust split wise would make current price around $40 to the old BHP)

Optus is now SingTel
Can't really comment on them but know that Telstra is expensive especially for Overseas calls
If we'd stayed with them we'd be paying 3-4x our old rates, now we've gone to VOIP (voice over internet) its slashed the bills by half again, so against TLS its like 6-8x cheaper

When will people wake up?

 

[Warren Buffet II]

I believe NAB can beat all of them, if they can fix the problems and get rid of the bad news. It is still the best divds yield in the banks and if you consider them keeping the same share price around $30 and divds around 85c for the next 5 years that only will give you around 7.5% before tax per year easily.

Now:

1) An advantage with high yield shares is that you can compund the divds, compund interest could multiply your returns.

2) Price could go up. NAB is very tied to CBA sharemarketwise and I see CBA going up very strong. NAB will follow, no to the same level but close to keep is market capitalisation above or around CBA.

3) Divds could go up or down, and this is the key with this share, if they can keep the divds at the same level, this will give support for the share price at any time.

Just some thoughts no advice. I personally have made about 20% return in NAB last year through its worse times.

WBII

 

[bvbfan]

2) Price could go up. NAB is very tied to CBA sharemarketwise and I see CBA going up very strong. NAB will follow, no to the same level but close to keep is market capitalisation above or around CBA.

I remember when CBA used to be $2-3 below NAB price, now today CBA made a new record high, I think with dividend coming up in a few days we may see $40 and an opportunity to buy after it goes ex-div
Just my opinion there though

Personally I think Westpac or ANZ might be worth a look
CBA, NAB have done pretty well in last 12months

 

[Warren Buffet II]

I remember when CBA used to be $2-3 below NAB price, now today CBA made a new record high, I think with dividend coming up in a few days we may see $40 and an opportunity to buy after it goes ex-div
Just my opinion there though

Personally I think Westpac or ANZ might be worth a look
CBA, NAB have done pretty well in last 12months

I think it will break the $40 mark soon. Plus I just read they increase the divd to 112c XD 19/8.

As you mentioned, Westpac is also an interesting share, I haven't evaluated it yet, but many people in the news are talking about it.

WBII