The good news is, if you're worried about the valuations of Commonwealth Bank (ASX: CBA) and Telstra (ASX: TLS) shares, there's other big name dividend stocks which are trading very cheap.
For example, Coca-Cola Amatil (ASX: CCL) is a company all Australians know and trust for its high quality service and rights to some of the world's biggest brands such as Coca-Cola, Sprite, Mother, Jim Beam and much more. Recently the company's SPC Ardmona and Indonesian businesses were hit by a number of macroeconomic factors such as adverse foreign exchange rates, increased competition and higher labour costs. However its fallen share price has given long-term focused investors an excellent buying opportunity. Its forecast dividend yield is 4.7% with 75% franking.
Another iconic Australian company which has recently suffered a short-term setback is Pacific Brands (ASX: PBG). Many readers are likely to be unfamiliar with that name but would certainly recognise its popular brands, such as Bonds, Mossimo, Berlei, EVERLAST, KingGee, Sheridan, Superdry, Hard Yakka and much more. Currently it shares trade on a price-earnings ratio of 7.6 and are forecast to pay a 7.5% fully franked dividend!
At the opposite end of the spectrum is Transurban Group (ASX: TCL), whose shares trade on a P/E of 40! However, it deserves to be more expensive for a number of reasons. Firstly, it recently agreed to acquire Queensland Motorways for $6.673 billion plus stamp duty and transaction costs of $0.447 billion. It also confirmed a 35 cent distribution per share for FY14 and a 39 cent payout in FY15. Both payouts are ahead of analyst expectations and give it a forecast dividend yield of 4.9% fully franked.
With companies like these trading so cheap, don't fool be fooled into thinking the big banks, two supermarkets and Telstra are the only "safe" dividend stocks available in the S&P/ASX200 (ASX: XJO) (^AXJO). Each of these companies represent a good buy at current prices and are likely to grow their dividends per share strongly in the coming decade.
