The National Australia Bank Ltd. (ASX: NAB) share price and the Mantra Group Ltd (ASX: MTR) share price have gone in opposite directions over the past year. Here's a graph comparing the Mantra share price to the NAB share price, and the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO):
As can be seen, these two 'must-have' ASX dividend shares have been at complete odds over the past year.
Mantra Group
Mantra Group shares are tipped to offer a dividend of more than 10.5 cents per share in the next year. Thanks to the 31% share price fall over the past 12 months, that puts Mantra Group shares on a forecast fully franked dividend yield of 3.8%. That's pretty impressive.
Mantra is Australia's second largest hotel and resort operator. Mantra most recently reported a 16% increase in half-year revenue and 26% rise in profit. The company operates across four key areas, including Resorts, CBD, Central Revenue and Distribution, which includes fees from bookings and fees from the management of properties; and Corporate, which includes marketing.
Mantra operates as a franchise type model, with around 46% of sales coming from Mantra's Central Revenue and Distribution business. Its Resorts and CBD operations are also typically operated with outsourced management leases.
The key threat to Mantra, as most see it, is the rise of Airbnb. However, there is a chance that the threat is overdone.
NAB
NAB shares offer a dividend yield of more than 6% fully franked — over 8.6% grossed up. NAB is Australia's premier business bank but also has a big chunk of the Australian mortgage pie.
The $85 billion bank has recently undergone a series of key changes to its business structure, including the divestment of its UK bank, Clydesdale and Yorkshire Bank; its US agribusiness bank, Great Western Bancorp; and most of its insurance business.
NAB is focusing on its core assets in retail and business banking in Australia and New Zealand. These are its most profitable businesses.
Foolish Takeaway
At today's prices, I think both of these companies deserves a spot on a watchlist. Both companies have their risks, of course. But with those dividends on offer, they at least warrant a closer look.
