Here are 3 shares in the buy zone on the S&P/ASX Small Ordinaries

Although not as well-known as its bigger and more illustrious brother, I think the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) is home to a great number of a high quality shares.

Three which I think could be great buy and hold investments today are listed below. Here’s why I like them:

Ardent Leisure Group (ASX: AAD)

Whilst Ardent Leisure is best known for its struggling Dreamworld theme park business, the biggest contributor to earnings is its little known Main Event business over in the United States. At present its Main Event family entertainment centres account for 63% of the company’s EBITDA. I expect this to increase even further over the next few years as its aggressive expansion continues. All in all, I believe this will put the company in a position to grow earnings and its dividend at a solid rate over the next decade.


The BWX share price may have rallied an impressive 35% year-to-date, but I believe the company behind the Sukin skincare range could still prove to be an outstanding buy and hold investment. After huge success in Australia, the company has taken the Sukin brand overseas to the UK, Canada, and China. I have been impressed with the company’s early progress and believe these are just three of a good number of markets which the company will be able to target.

Mantra Group Ltd (ASX: MTR)

With its diverse portfolio of accommodation brands covering a whole range of price points, I believe Mantra Group is likely to be a big winner from the tourism boom. As demand for its rooms increases, I expect the company to enjoy higher occupancy levels which should allow it to command higher average room rates. Overall, I believe this will result in strong earnings and dividend growth. At present Mantra’s shares provide a trailing fully franked 3.6% dividend.

Finally, if you like Mantra for its dividend like I do, then you might also like this high-yielding dividend share. Its market-beating dividend not only smashes the market-average, but even some of the banks.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of BWX Limited. 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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