Shares of National Australia Bank Ltd. (ASX: NAB), TPG Telecom Ltd (ASX: TPM) and REA Group Ltd (ASX: REA) pay handy fully franked dividends.
At the right price, I'd be happy with these three fully franked dividend shares in my long-term portfolio.
National Australia Bank
As highlighted by fellow Motley Fool writer, Ian Crane, NAB is currently offering a handy fully franked dividend yield of 6%. That's an impressive yield without the added benefit of those tax-effective franking credits. But if you include the tax benefit, the yield approaches 9%.
NAB shares have rallied strongly over the past 12 months and currently trade around fair value, in my opinion. That means, it's not a standout buy. However, if you have a view to the long-term (three years or more), it could be a good place to park some extra investment dollars right now.
TPG Telecom
Well managed? Tick. Dividend yield? Check. Modest growth? Indeed.
TPG Telecom is the growing telecommunications business, with brands such as iiNet and AAPT under its banner.
TPG Telecom is pushing into the mobiles market and expanding abroad. While I think growth may be a bit slower in coming years, at today's prices it offers a tidy 2.4% fully franked dividend yield. What's more, it shares appear good value today.
REA Group
REA Group is the name behind realestate.com.au. It makes money by charging agents to list their properties for sale. I think REA Group shares are a little expensive but they have a bright future ahead. REA Group's main competition is Domain, owned by Fairfax Media Limited (ASX: FXJ). Fairfax is believed to be planning to demerge the Domain business into a separate company.
Regardless of what happens to Domain, I think REA Group has a number of levers it can pull to become even more successful. It is slowly turning the property market into more of a share market, and it recently joined forces with NAB to offer loans. I'd look to buy its shares well below $50.
Foolish Takeaway
At the right price, I'd be happy to hold each of these companies for the long-term. At today's prices, I think TPG Telecom shares represent the best value followed by NAB.
Right now, TPG Telecom does not offer a huge dividend but it makes up for it with growth potential. They are the best kind of investments, in my opinion.
