With the prices of both oil and iron ore falling hard throughout 2014, the S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO) is experiencing its fair share of volatility. Whilst it can be daunting at first, this creates the perfect hunting ground for long-term focused investors.
Whilst it may be difficult to find quality companies offering both big dividend yields and growth potential at the top end of town, if investors look down the market there are some great companies on offer.
Here are four growing dividend stocks you can consider adding to your watchlist or portfolio:
- RCG Corporation Ltd (ASX: RCG) is the owner of The Athlete's Foot and distributor of exclusive brands such as Merrell, Saucony and CAT in Australia and New Zealand. At the group's recent AGM, it painted a positive outlook for the remainder of the year and beyond. It trades on a trailing dividend yield of 6.7% fully franked.
- Collins Foods Ltd (ASX: CKF) is the owner and operator of selected KFC and Snag Stand restaurants throughout Australia and the owner and operator of the Sizzler casual dining chain in Australia and Asia. The company recently reported a huge jump in half-year revenue but a significant write-off in its Sizzler chain. Whilst the coming year's profit will be impacted by the write-off, it is undertaking a rebranding strategy to turnaround the business whilst also growing its KFC store count. It offers a 4.6% fully franked dividend.
- M2 Group Ltd (ASX: MTU) is the owner of internet service providers Dodo, Primus, Eftel and Commander. After years of acquisitive growth, the company now has an ambition to become a complete household utilities provider. At its current market price, it yields a forecast fully franked dividend of 3.7%.
- Super Retail Group Limited (ASX: SUL) owns and operates Rebel, Ray's Outdoors, BCF Boating Camping Fishing, and more. In the fallout of the mining boom its leisure businesses have come under pressure and its share price has been hit hard. However with a long-term view, investors can now pick up the stock at a reasonable price and its 5.3% fully franked dividend could provide a healthy income stream while you wait.
Foolish takeaway
All of these companies are offering-up generous dividends to complement their modest long-term growth potential. Whilst the share prices of both Collins Foods and Super Retail Group may be volatile in the near-term, they have brands and services which Australians know and trust.
