Shares of National Australia Bank Ltd. (ASX: NAB), RCG Corporation Ltd (ASX: RCG) and Vocus Group Ltd (ASX: VOC) look good for dividends.
NAB
National Australia Bank shares have rallied strongly in recent months, up 12% since October. Although Australia's third-largest bank has a troubled past, both locally and abroad, there is an argument to be made for holding its shares in coming years. For example, NAB has paid down billions of dollars of bad loans from the GFC era, divested Clydesdale Bank and a large part of its insurance business. Ultimately, that means it can focus on its most profitable operations, such as Australian and New Zealand retail and business banking. Its shares trade on a dividend yield of 6.2% fully franked.
RCG Corporation
RCG is the owner of The Athlete's Foot and distributor of popular apparel brands such as Merrell, CAT, Saucony and more, throughout Australia and New Zealand. The $790 million company has grown by acquisition and organically in recent years. However, it continues to offer a hefty dividend yield of 4.2% fully franked.
Vocus Group
The Vocus Group includes some of Australia's leading retail and business telecommunications brands such as M2 Wholesale, Dodo, Primus and more. Due to changes at the board level and uncertainty in its growth prospects, the company's share price has struggled in recent months. However, the rollout of the National Broadband Network (NBN) appears to be a net positive for Vocus. And when it is coupled with the cost synergies from recent acquisitions and the Vocus fibre network backbone, I think it is a dividend stock worthy of closer attention. Shares trade on a trailing dividend yield of 3.9% fully franked.
Foolish Takeaway
At today's prices, I think Vocus is the best value for money of the above three stocks, while RCG Corporation is the highest risk. However, at the right price I think investors could do far worse than hold all three companies in a long-term share portfolio.
