The idea of holding an investment which produces a regular income and the potential for long-term capital gains appeals to many investors.
But if you're new to the stock market, knowing where to start can be difficult.
So here are five companies which appear to offer long-term growth potential and a juicy fully franked dividend.
1. M2 Group Ltd (ASX: MTU) is the owner of telecommunications brands such as Dodo, Primus, Eftel and Commander. Despite a strong rally in price over the past decade, shares change hands on a forecast dividend yield of 3.9% fully franked.
2. G8 Education Ltd (ASX: GEM) is a childcare centre owner and operator which is capitalising on a highly fragmented industry. Analysts are expecting a dividend of 3.6% fully franked in the next year.
3. Tassal Group Ltd (ASX: TGR) is a $530 million provider of Atlantic salmon to the Australian market. The group has recently transformed its operations to focus on the less volatile domestic markets and to improve per capita consumption. Shares have fallen around 7% in the past month and could represent good value at today's prices. It offers a 3.8% fully franked dividend.
4. Cover-More Group Ltd (ASX: CVO) is a recently-listed provider of travel insurance. Analysts are expecting a decent jump in earnings and dividends per share in the coming year. Indeed the company recently announced a 51% increase in NPAT and a dividend of 7.2 cents per share. Shares change hands on a trailing dividend yield of 3.2% fully franked.
5. Hills Ltd (ASX: HIL) is a small-cap company which provides a range of technology and related services to the Australian healthcare and security sectors. The $320 million company is forecast to pay a 5.5% fully franked dividend in the next 12 months.
Our #1 dividend stock idea – Yours FREE!
