Should you buy these unloved ASX shares?

Market darlings such as Aristocrat Leisure Limited (ASX: ALL) and Afterpay Touch Group Ltd (ASX: APT) may have investors fighting to get hold of their shares, but not all shares on the local market share the same positive investor sentiment.

The two shares listed below are amongst the most unloved shares on the ASX right now. But should you give them a chance?

Ardent Leisure Group (ASX: AAD)

Late last year Ardent Leisure agreed to sell its Bowling & Entertainment division to The Entertainment and Education Group for $160 million on a debt and cash free basis. This left the company with just its theme parks business and its US-based Main Event business following previous sales of its marinas and health clubs.

I wouldn’t necessarily expect the selling to stop there either and suspect that management will soon offload its theme parks so it can concentrate fully on the fast-growing Main Event chain. In my opinion this makes Ardent Leisure an attractive option for investors today. Main Event is an excellent business that produces a strong return on investment and has the potential to expand across the United States.

Telstra Corporation Ltd (ASX: TLS)

This telco giant fell out of favour with investors last year when it decided to cut its dividend to 22 cents per share in FY 2018. As disappointing as it was, it had to be done in order for the company to reinvest in future growth opportunities.

Whilst its future is not as certain as it was 10 years ago, I have confidence that management will be able to return the company to growth again in the future. This could make Telstra a decent option for investors, especially given that its shares should provide a fully franked 6% dividend over the next 12 months. This easily beats anything on offer with term deposits and savings accounts.

But if you're not keen on Telstra then check out this fast-growing dividend share.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool's dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.