Do you like Prickly Pears? You’ll LOVE these 3 ASX dividend share ideas

If you are seeking ASX dividend share ideas, try Mantra Group Ltd (ASX: MTR) shares, Vocus Group Ltd (ASX: VOC) shares and Thorn Group Ltd (ASX: TGA) shares on for size.

Vocus, Mantra & Thorn Group Vs. ASX 200

Source: Google Finance

As can be seen in the chart above, each of these shares has significantly underperformed the broader market, or S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), over the past year.

Vocus shares, for example, have underperformed the market by around 74% before dividends. Ouch!

But, as Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful.”

What he meant was, savvy long-term investors are more likely to find a bargain investment when others are selling out of fear — which is what I think is happening right now.

However, a word of warning: I consider these three ASX shares to be high risk, so be prepared for volatility.  


Vocus is the owner of telecommunications brands like Dodo, iPrimus and much more. In recent times, the Vocus share price has been discounted heavily by investors who fear the company’s valuation is too high and the telco industry is set for lower returns.

I also think the industry can expect lower returns going forward. However, five years from now, I suspect Vocus will be a more profitable company than it is today.


Mantra is the popular hotel and resorts owner — in fact, it is Australia’s second largest provider. It owns the Mantra, BreakFree and Peppers brands.

Mantra does not manage all of its properties. Instead, it makes a lot of its money via its central booking and management systems. Some investors fear Mantra is ripe for disruption by the likes of Airbnb, the global room-sharing service.

However, I think the current Mantra share price offers good upside for the risks involved.

Thorn Group

Thorn Group is a small-cap company, worth $220 million, operating in a tough industry. The short-term loans and finance provider — best known for Radio Rentals — is currently being crushed by concerns over poor lending practices and omnipresent government regulation.

While the company is expected to cut its final dividend I think Thorn Group shares should be on every savvy value investor’s watchlist because they appear cheap at today’s levels. 

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen 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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