4 shares under $5 with massive potential

Credit : Will

Although it has been a pretty tough week for the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) and S&P/ASX SMALL ORDINARIES (Index: ^AXSO) (ASX:XSO), I don’t think investors should feel too disheartened.

In fact, now could be a great time to top-up on your favourite shares or consider adding a couple of new shares to your portfolio.

With that in mind, here are four shares that investors might want to consider with a little more research:

Amaysim Australia Ltd (ASX: AYS)

Shares of the online-only telco have been pretty volatile since listing in July 2015, but the company has delivered a number of respectable profit results during that time. The company continues to win new mobile customers through its low-cost offering and has recently announced plans to become a player in the game-changing NBN market. At $2.19, the shares trade on a price-to-earnings ratio of less than 20 and offer a trailing dividend yield of 3.8%.

Mayne Pharma Group Ltd (ASX: MYX)

The generic drug company has really expanded its portfolio of molecules over the past year thanks to a number of opportunistic acquisitions. These new products are expected to make a significant contribution to earnings over the next few years along with a number of additional products that are scheduled to be launched pending successful regulatory approval. Interestingly, the shares have drifted lower over the past month or so and could soon be entering value territory.

Lifehealthcare Group Ltd (ASX: LHC)

This small-cap healthcare company is a leading supplier of surgical devices in Australia and New Zealand. Although the shares have taken a pretty big tumble over the past 12 months as a result of the weaker Australian dollar and product launch delays, the longer term outlook for the medical supply market remains attractive. Importantly, the shares trade on a pretty big discount to the broader healthcare sector and offer an attractive dividend yield of more than 6%.

Mantra Group Ltd (ASX: MTR)

Despite delivering a fairly solid FY16 result, parts of the market remain unconvinced about Mantra’s ability to deliver on its recent Hawaiian acquisition and its competitive position against the likes of Airbnb. Nevertheless, Mantra has a number of exciting growth projects that should help bolster earnings growth moving forward and allow it to take advantage of the influx of tourists entering Australia’s capital cities. On top of this, investors can expect a pretty attractive dividend yield of 4.2% over the next 12 months.

Forget companies cutting dividends like BHP and Rio Tinto when you can get GROWING dividends.

This "dirt cheap" company. is growing like gangbusters, and trading on a fat dividend yield, FULLY FRANKED. With interest rates set to stay at these low levels for years to come, for income-hungry investors, including SMSFs, this ASX company could be the "Holy Grail" of dividend plays for 2016. Click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required.

Motley Fool contributor Christopher Georges owns shares of Amaysim Australia Ltd, LifeHealthcare Group Limited, and MANTRA GRP FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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