MENU

3 dirt cheap ASX shares

Although I think the shares of Domino’s Pizza Enterprises Ltd (ASX: DMP) and Ramsay Health Care Limited (ASX: RHC) have fallen to a level that makes them great value, for some investors their valuations are still a little rich.

So if Domino’s and Ramsay are not for you at this time, maybe the three shares listed below will be. I think that these shares could be classed as being dirt cheap at their current share prices. They are as follows:

RCG Corporation Ltd (ASX: RCG)

At the current price this footwear retailer’s shares are changing hands at just 11x earnings and provide investors with a generous trailing fully franked 7.5% dividend. While trading conditions remain weak and the retail industry may soon be disrupted by Amazon, I think RCG provides a solid risk/reward that makes it worth considering. Especially with management confident that it will deliver another year of profit growth in FY 2018.

Super Retail Group Ltd (ASX: SUL)

Super Retail is the company behind brands such as Supercheap Auto and Rebel Sport. Like RCG, it will have to contend with subdued trading conditions and Amazon’s entry into the market in FY 2018. But with its shares trading at 12x trailing earnings and management advising of strong like-for-like sales growth so far in FY 2018, I think it is well worth considering as an investment. A further bonus is its dividend, which offers a trailing 5.6% yield at present.

Telstra Corporation Ltd (ASX: TLS)

This telco giant’s shares recently fell to a five-year low amid concerns over NBN margins, future growth plans, and its ability to maintain its proposed 22 cents per share dividend. This has left its shares changing hands at below 10x trailing earnings. While it certainly is not a low risk investment anymore, I believe that all the bad news has been factored into its share price now. This could therefore be an opportune time to snap up its fully franked 6.3% FY 2018 dividend.

Not keen on Telstra despite its cheap price? Then check out these top quality dividend shares.

Rich listers know the power of dividend shares!

In FY 2018 share market investors are staring down the barrel of ballooning global debt and potential geopolitical powder keg. But thankfully one Foolish expert is revealing 5 of his favorite dividend payers for wealth-creating income whatever the global weather...

But you must act now. This updated report is available for a limited time only, and your copy is 100% free. So don't miss out!

Simply click here to receive your free copy of "Our Top 5 ASX Dividend Shares to Earn You Money in 2018" right now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Super Retail Group Limited and Telstra 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.