Buying stocks which boast strong dividend yields is a great way to maximise your chances of beating the market. Just think about how well Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd have performed over the past 10 years!
It can be hard to identify the next big thing but I think the four stocks below will beat the S&P/ASX 200 (ASX: XJO) (^AXJO) and pay dividends on top, as their growth strategies begin to gain traction.
Don’t miss your opportunity to buy them now, while they’re still offering heaps of growth potential and plenty of room for increased dividend payments.
1. The first company is RCR Tomlinson Limited (ASX: RCR). RCR has recently been thrown out with the bath water as investors sold down anything mining services related. Despite the bleak forecasts for the sector, it earns only 38% of its revenue from resources. With a solid 3.3% dividend and rapidly growing earnings, don’t miss your opportunity to buy it while it’s cheap.
2. RCG Corporation (ASX: RCG) is another small-cap which has been treated unfairly by the market simply because it’s involved in the retail sector. The company is very well run, has exclusive brands (such as Saucony and Merrell) and its stores, The Athlete’s Foot, are continuing to grow and drive earnings higher. With a forecast 6.1% fully franked dividend, there’s plenty to like about RCG.
3. Ardent Leisure Group (ASX: AAD) is a mid-cap stock involved in entertainment and leisure throughout Australia and the US. It includes names such as Goodlife Healthclubs, AMF and Kingpin Bowling, Dreamworld and Main Event. Forecast to pay a 4.8% dividend in 2014, it is a top growth and dividend stock you need to consider.
4. Cash Converters International Ltd (ASX: CCV) is still one of my favourite investments at current prices. With an increasing store count throughout Australia, the UK, New Zealand and recently, South America, it’s a great buy for under $1.20 per share. It is forecast to pay a 3.8% fully franked dividend yield in the next year.
An EVEN BETTER buy
I believe each of the stocks above will handsomely reward long-term shareholders with both dividends and capital gains.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool Contributor Owen Raszkiewicz owns shares in RCG Corporation and Cash Converters International.
- ALL ORDINARIES finishes higher Monday: 10 shares you missed – October 30, 2017 4:44pm
- Are these the secrets behind Australia’s best ASX investors? – October 30, 2017 3:43pm
- My Aussie Share Market Investing Do’s of 2017/2018 – October 30, 2017 1:13pm