Forget about speculation and short-term technical trading.
Finding great businesses trading at reasonable prices is the best way to grow your wealth, over the long term.
Whilst it may not be easy to find a company which ticks all the boxes in our investment criteria. Every now and again the market offers us a compelling opportunity which is too good to ignore.
Here are five dividend stocks which have great brands in their stable and tick many of the boxes which I look for in an investment.
1. Coca-Cola Amatil Ltd (ASX: CCL) is an iconic Australian blue-chip company. Whilst the group has suffered a number of setbacks and forecast lower earnings guidance on a number of occasions, its share price could be at a bottom. Trading below $9.00 per share, value investors are no doubt licking their lips at the opportunity to buy in cheap. Analysts are forecasting a dividend of around 4.6% in the coming 12 months.
2. Washington H. Soul Pattinson & Co. Ltd (ASX: SOL) is a diversified holding company which has been in existence for over 100 years. I keep waiting to buy shares in the company, hoping they'll get cheaper and even though one of its key holdings, New Hope Corporation Limited (ASX: NHC), has been a drag on performance recently, WHSP continues to truck ahead. It offers a 3.4% fully franked dividend.
3. Cash Converters International Ltd (ASX: CCV) is a small-cap second-hand goods dealer and provider of payday loans. The group is currently expanding its global footprint through joint venture partnerships as well as nurturing its Carboodle business and growing its payday loans business. Whilst it has recently been dealt a blow from changes in the lending environment, I think the long term is looking exceptionally bright for Cashies. It's offering a 2.9% fully franked dividend.
4. RCG Corporation Limited (ASX: RCG) is the name behind The Athlete's Foot range of stores and exclusive distributor of footwear such as Merrell, Saucony and more. Despite a tough retail environment, RCG has continued to grow profits and pay out a handsome dividend, currently equivalent to 7.7% fully franked.
5. Collins Foods Ltd (ASX: CKF) is an owner and operator of KFC, Sizzler and Snag Stand stores. Although the group's Sizzler chain has been weighing on group earnings, it's rebranding the operations and investing in growing its KFC store network throughout Australia. Shares change hands on a dividend yield of 5.1% fully franked.
Our #1 dividend stock idea – Yours FREE!
