MENU

3 Dividend Shares For Long-Term Growth

Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and Australia and New Zealand Banking Group (ASX: ANZ) all pay nice fully franked dividends. However, if you want to grow your portfolio and earn a decent yield along the way, I would look at the following three dividend-growth companies.

Event Hospitality & Entertainment Ltd (ASX: EVT)

Event is a conglomerate with multiple operating units including cinema exhibition (Event Cinemas), and ownership of hotels and resorts such as Rydges, QT, and the Thredbo Alpine Resort. It also owns the Sydney State Theatre and a portfolio of property investments. It’s a well run conglomerate, with significant insider ownership, a rock solid balance sheet, and a track record of long-term shareholder value creation.

I believe this company can deliver market-beating growth over the next decade and the shares currently provide a fully franked 3.8% dividend.

Greencross Limited (ASX: GXL)

With over 230 retail outlets and 160 veterinary clinics, Greencross is the leader in pet care and retail in Australia and New Zealand. The pet care market in Australia is estimated to be worth around $9 billion in yearly revenue. Greencross is the largest player, but with only an 8% share in a fragmented market I see significant growth for the company.

At 16 times trailing earnings, you get to buy a business with above-market growth potential at a less-than-average market multiple. And the icing on the cake is a fully-franked 3% yield.

TPG Telecom Ltd (ASX: TPM)

Australia’s second-largest fixed broadband provider has been in the news lately. Recently, the company announced that it has won a new spectrum to build its own mobile network in Australia, bringing competition to the doors of Telstra Corporation Ltd (ASX:TLS), Optus, and Vodafone.

TPG is also building a mobile network in Singapore. I believe TPG is well placed to leverage its country-wide network to increase market share and operating earnings, and the addition of mobile will give the company more options in terms of winning customers potentially by offering bundles. Chairman and CEO David Teoh has a long history of shareholder value creation and with significant ownership of the company, his interests are aligned with the shareholders. TPG currently provides a fully franked 2.8% dividend.

Bonus Pick!!  One More Massive Dividend Stock to Buy Today!

FREE REPORT! Click here to discover the Motley Fool's #1 ASX dividend recommendation - currently paying a 6.7% gross yield!

Even better, this 'under the radar' consumer play is growing like gangbusters. Shares have rocketed 100% in the last 5 years, DOUBLING shareholders' investment. So what's not to like?

Simply click here to grab your free copy of this up-to-the-minute research report right now.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Event Hospitality & Entertainment and Telstra Limited. The Motley Fool Australia owns shares of Greencross Limited and TPG Telecom Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.