With the RBA looking all set to keep interest rates at just 2.5% over the short to medium term, many investors are looking for shares that pay decent dividends. Indeed, it would be of little surprise to see demand for such stocks rise moving forward, with the knock-on effect of increasing share prices being the result. With this in mind, here are three companies that offer attractive yields at smart prices.
Skilled Group Ltd
Investors in Skilled Group Ltd. (ASX: SKE) have endured a challenging 2014, with the labour hire firm seeing its share price fall by 18% since the turn of the year. A key reason for this has been a fall in profits, as the company has suffered from a wider decline in resources sector investment. However, the future could be a lot brighter for Skilled Group, as it is forecast to increase earnings by 8.3% per annum over the next two years.
This should enable it to increase dividends per share at a rate of 5.7% per annum over the same time period, which is very positive news for income-seeking investors. With shares trading at a P/E of 11.8 and yielding a fully franked 6.3%, Skilled Group could prove to be a skilful income play.
JB Hi-Fi Limited
As with Skilled Group, JB Hi-Fi Limited (ASX: JBH) has experienced a challenging year thus far, with shares in the electronics and appliance retailer falling by 21% year-to-date. This is despite full-year 2014 profit being 10% higher, with weak consumer sentiment causing investor sentiment to remain at a low point.
However, looking ahead JB Hi-Fi is expected to continue with its strong profit growth. Earnings are forecast to increase by 6.3% per annum over the next two years, which should allow it to bump-up dividends per share by 6.1% per annum over the same period. With shares in the company trading on a P/E of just 13.2 and yielding a fully franked 5.1%, they could prove to be a smart buy.
Cromwell Group
Cromwell Group (ASX: CMW) has delivered share price gains in 2014 that are roughly in-line with the ASX, with the Aussie property company being up just under 7% since the turn of the year.
Of the three companies, it offers investors the best yield of 7.3% (although it is unfranked), but the lowest dividend per share growth rate of just 0.5% per annum over the next two years. Still, it's priced to sell, with Cromwell Group having a P/E of just 13.4 and a price to book ratio of 1.4. Furthermore, with earnings set to rise at an annual rate of 7.9% over the next two years, it could prove to be a strong income play moving forward.
