At the current Vocus Group Ltd (ASX: VOC) share price, Mantra Group Ltd (ASX: MTR) share price and RCG Corporation Ltd (ASX: RCG) share price, big dividends are on offer.
Don't get me wrong, these three companies have a few 'hairs on them'. Meaning, they are not completely risk-free investments. Nor should they be considered 'low risk' by even the share market's standards.
However, following some big sell-offs, each company's shares appear decent value and offer big dividends.
Vocus Group
Vocus is the name behind brands like Dodo, iPrimus, Eftel and much more. The company has an extensive backbone of fibre networks, following the acquisition of Amcom and NextGen. The company is still digesting some of its recent acquisitions, which could provide an uplift to profit once the synergies of the deals are realised.
At today's prices, Vocus shares are expected to yield a 3.4% dividend fully franked.
Mantra Group
Mantra Group is Australia's second largest hotel and resorts operator and includes the Peppers brand under its banner. The company's shares have been heavily sold off despite its valuation looking tempting and more growth expected over coming years. I take analyst price targets with a pinch of salt. However, of the 12 analysts surveyed by The Wall Street Journal, eight have a buy — with only one sell.
Mantra is forecast to pay dividends equivalent to a yield of 5.2% fully franked in the year ahead.
RCG Corporation
RCG is the owner of footwear stores, including The Athlete's Foot, Hype DC, Platypus and more; and the exclusive distributor of well-known brands like Saucony, Merrell, Timberland and more. Of the three companies on this list, RCG is probably the company I'm most unsure about, given its growth strategy moving forward. However, at today's prices, RCG shares yield a dividend of 5.7% fully franked.
Foolish Takeaway
Investing in the sharemarket is higher-risk than buying assets like term deposits and savings accounts. However, over the long run, the returns on offer from the sharemarket have proven to be far better — it has even outpaced the returns from property and bonds.
In my opinion, Vocus, Mantra and RCG could provide a decent dividend income and growth potential over time. If I were seeking income from the sharemarket, however, I would diversify the portfolio with shares in perhaps 20 quality companies.
