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3 great dividend shares you’ve never heard of

Research has shown that dividends are a key component of investor returns over the long term. They’re even better in Australia, thanks to the tax-effectiveness of the franking credits that many dividend shares offer.

Here are 3 dividend shares you’ve probably never heard of, that could be worth a look today:

Lifehealthcare Group Ltd (ASX: LHC) – yields 6.5% unfranked

Lifehealthcare Group is a medical device distributor that resells a variety of ‘capital’ (think: operating tables and robotic equipment) and disposable (e.g., instrument kits) equipment to surgeons. It can grow via acquisition, expanding into new product categories, and by partnering with new surgeons who order more products from the company over time. An ageing population is a powerful tailwind.

Its dividend payouts are looking a little stretched, but Lifehealthcare could still be worth a closer look.

Thorn Group Ltd (ASX: TGA) – yields 8% fully franked

The embattled Thorn Group recently introduced pricing caps on its rental agreements (which will reduce its profitability), is setting aside some earnings to pay a regulatory penalty, and faces a $50 million class action. Its dividend will be cut somewhat this year as a result, although it should remain attractive relative to the rest of the ASX.

Thorn is a bit of a ‘colourful’ suggestion, but is cheaply priced, and might be worth further investigation by the value-minded investor.

Event Hospitality and Entertainment Ltd (ASX: EVT) – yields 4% fully franked

Event Hospitality is not a name that screams brand recognition, but most readers will be familiar with the Event group of cinemas that this company operates. Event also operates Thredbo resort, and has a variety of other investment interests.

Shares took a dive recently when earnings came in below expectations, due to a weaker film line-up compared to the prior year. Even so, Event operates an attractive group of businesses and could be an opportunity right now.

There is also a fourth dividend share, which is trading at an attractive price and looks like great value in my opinion:

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Event Hospitality & Entertainment. Motley Fool contributor Sean O'Neill owns shares of LifeHealthcare Group Limited and Thorn Group Limited. 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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