One quality dividend share which I believe travels under the radar of a lot of investors is Xenith IP Group Ltd (ASX: XIP).
The company provides a broad range of intellectual property (IP) services, including identification, registration, management, commercialisation, and enforcement of IP rights locally and internationally.
Whilst it isn't necessarily a business that gets investors excited, its strong growth prospects and market-beating dividend certainly are.
Through its numerous brands which include Shelston IP, Watermark IP, and the soon to be acquired Griffith Hack, the company has carved out a market-leading position in Australian PCT applications, innovation patent applications, provisional patent applications, and registered designs.
This and recent acquisitions have put the company in a great position to capture the strong growth being witnessed in the Southeast Asia market. With 75% of its sales already derived from its international clients, this looks set to increase in the next few years.
Which is great news for the company considering the Australian dollar is tipped to drop significantly lower in the next 12 months.
With management intent on paying out 70% to 90% of earnings as dividends, I believe Xenith IP could be a great investment for income investors. Especially with the generous yield on offer at the moment. In FY 2017 Xenith IP is forecast to provide a 4.9% dividend.
One thing I like about Xenith IP is the long-standing relationships it has with clients. Of its top 50 clients, 36 of them have been with the company for at least a decade.
I believe this gives the company a firm foundation on which it can build the business. So with its shares changing hands at just 15x estimated FY 2017's earnings, I would choose it ahead of its industry rival IPH Ltd (ASX: IPH) today.
