If you're wanting to take advantage of the market's recent sell-off and are looking for some solid dividends, I've found five that are looking very tempting right now (hint: none of the big four banks made this list)…
- RCG Corporation Limited (ASX: RCG), the owner of the popular Athlete's Foot shoe chain, offers a tantalising 7.5% dividend, fully franked. Grossed up, that's a yield of 10.7%! While it operates in the retail industry, its superior customer service levels enable it to maintain high margins which should help drive the company's earnings higher over the coming years.
- M2 Group Ltd (ASX: MTU) is a rapidly expanding telecommunications company with businesses such as Dodo, Commander and Primus in its arsenal. While the company has grown acquisitively thus far, it will now turn its attention towards organic growth. It offers an impressive grossed-up yield of 4.9%.
- Coca-Cola Amatil Ltd (ASX: CCL) is enduring strong short-term headwinds but the strength of its balance sheet has allowed it to maintain a solid dividend (albeit slightly lower than last year's distribution). As it stands, it is expected to pay 45.5 cents per shares in FY15, giving it a forecast 5.2% dividend, franked to 75%.
- Scentre Group Ltd (ASX: SCG) shares have declined by more than 6% in September, giving investors the opportunity to stock up on the shopping centre operator. With reasonable growth prospects, the company's 6% dividend yield is the icing on the cake.
- JB Hi-Fi Limited (ASX: JBH) is another prospect to consider. One of Australia's leading retailers, the stock has fallen heavily over the last 12 months despite having increased its net profits by more than 10% in FY14. I expect earnings to receive a boost as the company continues to roll out its new HOME format stores and investors can enjoy its grossed up 7.8% dividend yield in the process.
