Buyer beware: Not all big dividends stocks are cheap.
In fact, some of the biggest and best dividend stocks in the S&P/ASX 200 (INDEX^: AXJO) (ASX: XJO) are once again trading at unreasonably high prices despite a recent setback in price.
However with interest rates low (and potentially going lower) investors, like you and I, should be positioning our portfolios to benefit from tomorrow's big dividend stocks.
The good news is, we don't have to go too far to find some well-priced growth stocks which look positioned to handsomely reward long-term shareholders with both dividends and capital gains.
1. G8 Education Ltd (ASX: GEM) is a childcare centre owner and operator which is currently pursuing an aggressive roll-up strategy. This has enabled its share price to rise an incredible 60% in the past year. But the $1.7 billion company isn't done yet, with analysts tipping earnings and dividends to nearly triple in the next two years.
2. Shine Corporate Ltd (ASX: SHJ) is a law firm specialising in personal injury litigation, with a focus on expanding outside its home state of Queensland, both organically and acquisitively. With a strong balance sheet to fund its growth coupled with defensive earnings, Shine is offering conservative investors a great long-term buying opportunity. Indeed, at today's prices it offers great value for investors wanting both dividends and growth potential.
3. Yellow Brick Road Holdings Ltd (ASX: YBR) is a junior diversified wealth management company run by former Wizard Home Loans founder, Mark Bouris. YBR is expected to turn its first profit in the next 24 months and is a great speculative buy for investors willing to hold the shares for many years, whilst the company blossoms.
4. iiNET Limited (ASX:IIN) has been one of Australia's fastest growing internet service providers in recent times. Indeed, its share price has reflected its success and in just five years it has risen from below $2.00 to over $8.00. But it's not done yet. In fact, analysts are forecasting 15% earnings per share growth and a dividend of 3.2% in the next year.
