With the ASX as a whole looking quite expensive and in some cases completely overpriced, investors as a whole are struggling to find dividend-paying growth companies.
The search is further complicated by low interest rates fuelling a demand for dividend yields, which has seen the Price to Earnings (P/E) multiples of traditional dividend shares skyrocket.
However, I've identified three companies today that are trading on reasonable multiples, have growth potential and offer great fully-franked dividend yields.
While we might not all have a casual $10,000 sitting in the bank, these three companies are a solid purchasing opportunity for however much cash you might have available.
FlexiGroup Limited (ASX: FXL) leases office equipment to various businesses in Australia and New Zealand. In addition to their FlexiRent program they also offer a variety of financing and leasing offers that can be tailored to suit the customer.
While FlexiGroup share prices have recovered since being sold off last year, the company trades on a P/E of around 12.5 and is expected to grow earnings by around 10% this year.
Earnings growth in future years also looks likely as the company's growth strategy and recently-attained dominance in the New Zealand market continue to bear fruit.
FlexiGroup pays a 4.7% fully franked dividend, and generally increases its dividend in line with earnings. I would invest a hypothetical $2,500 into this stock.
Second cab off the rank, Woolworths Limited (ASX: WOW), requires no introduction.
Despite a well-publicised struggle to increase grocery sales, Woolworths has a whole pile of advantages in our struggling economy, and the fact that it is substantially cheaper than competitor Wesfarmers Ltd (ASX: WES) turns it into the proverbial gift horse.
(Owen Raskiewicz sums up the myriad benefits of owning Woolworths shares here)
Trading on a P/E of 15 and offering a 4.7% fully franked dividend yield, I would invest a hypothetical $4,000 into this stock.
Last but not least is Ainsworth Game Technology Limited (ASX: AGI), which suffered something of a stumble in the first half of 2015 as Australian revenue dropped faster than international revenue growth could compensate for.
Total revenue fell by 8% and net profit slipped 3% thanks to a number of factors affecting the Australian market.
Despite that, Ainsworth reported an incredible 45% revenue growth in its international markets, and as foreign revenue grows a see-saw Australian market becomes less relevant.
Ainsworth has also avoided the huge run-up of prices in shares like Westfield Corp Ltd (ASX: WFD) that occurred when the Aussie dollar dropped, and currently changes hands for $2.63 a share or a P/E of ~14.
With a 3.9%, fully-franked dividend, I would invest between $1,000 and $1,500 in this stock.
'But wait!' you say – 'Your totals don't add up to $10,000!'
That's right, and it's for one of two reasons…
a) Because it's important to keep a cash balance to take advantage of any more opportunities,
And/or
b) Because I would use that cash balance to invest in another fantastic growth opportunity…The Motley Fool's Top Stock for 2015
The shares in this article are pretty well diversified – FlexiGroup gives retail and finance exposure, Woolies comes with strong defensive retail/grocery exposure, Ainsworth is riskier but brings international currency and gambling exposure, and there's one obvious hole… No Tech Stocks.
The Motley Fool's Top Stock will fill the hole nicely, seeing's how it's an established market leader with total dominance in its sector… and exciting plans to expand into overseas markets.
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