Your instant 5-share dividend income portfolio

The Telstra Corporation Ltd (ASX: TLS) dividend isn’t the only game in town, why not build a dividend portfolio with Macquarie Group Ltd (ASX: MQG), Vocus Group Ltd (ASX: VOC), RCG Corporation Ltd (ASX: RCG) and Mantra Group Ltd (ASX: MTR) shares.


The $56 billion telecommunications giant does not need an introduction. However, over the past year, shares in the market leader have fallen 10% and now trade around $4.70. Fears are mounting that the NBN Co will take a big chunk of Telstra’s profit as it levels the playing field for other broadband providers. Fortunately, a lower share price equals a higher dividend yield and at these levels, Telstra is expected to yield annual dividends of 6.6% fully franked.


Macquarie Group is Australia’s largest investment bank doing everything from aeroplane finance to stock research. I would buy Macquarie Group shares before its retail bank peers like Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ) because it offers truly global exposure. In the year ahead, it is tipped to pay a dividend of 4.7% with partial franking.

Vocus Group

Vocus is the name behind telco brands like Dodo, Primus, Commander and more. Vocus shares have been thrown out with the bathwater, much like TPG Telecom Ltd (ASX: TPM), as the market’s outlook for the sector took a turn for the worse. Following a management shake up, however, the Vocus board appears a lot more cohesive. And at these levels it is forecast to pay a 3.3% fully franked dividend.

RCG Corporation

RCG Corporation is the owner of The Athlete’s Foot, Hype DC, Platypus, ShuBar and Podium Sports. It also distributes footwear brands like Saucony, Skechers, Timberland and more. Thanks to a lot of acquisitions, RCG has grown rapidly. With fewer targets in front of it, however, the market has sold down RCG shares by 27% in just three months. At today’s prices, they are forecast to yield a dividend of 5.5% fully franked.

Mantra Group

Yet another company to have suffered a selloff is Mantra Group, the hotel and resorts owner. The market appears to be concerned that the company will be unable to fend off competition from the leading room-sharing service provider, Airbnb. However, at today’s prices, it is forecast to pay a fully franked dividend of 4.4%.

Foolish Takeaway

There is more to investing than buying the shares with the biggest dividends. If I were to buy any of these shares today, I’d pick Vocus, Macquarie and Mantra first. However, as always, it’s important to remember that sharemarket investing is best done over five years or more. In that time I can see these companies rewarding patient shareholders with cash dividends.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask.

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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