As the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) sinks below the 5,900 mark and all thoughts of 6,000 have been erased, investors may well be looking for those stocks that can continue to deliver consistent dividends.
Here are 5 high dividend-yielding companies that may well fit that mould. A number of them are very unlikely to ever be covered by the broker community because of their size or daily trading liquidity – a perfect opportunity for retail investors.
SG Fleet Group Ltd (ASX: SGF)
With an annualised fully franked dividend yield of 7.4% at the current price of $2.27, the provider of car fleet management, vehicle leasing and salary packaging services, looks highly attractive. SG Fleet also saw recent first half profits soar 29.6% over the previous year, and the company says it is on track to meet or exceed prospectus forecasts.
Tamawood Limited (ASX: TWD)
The Queensland-based property developer has consistently paid decent dividends, including through the GFC. At the current price of $3.56, the company is offering a fully franked dividend yield of 6.5%. No wonder the company has delivered shareholders an average annual rate of return of 19.4% over the past 10 years. In other words, turning a $1,000 investment into $5,889 over that period.
Gazal Corporation Limited (ASX: GZL)
Despite a fall in earnings per share and a reduction in the dividend, Gazal is still offering a 6.7% fully franked dividend. While recent results were messy thanks to the establishment of a joint venture, the distributor and retailer of Calvin Klein, Van Heusen and Tommy Hilfiger brands could be set to report a better second half. Highly illiquid, Gazal is often overlooked by the investing community.
RCG Corporation Limited (ASX: RCG)
Best known for its Athlete's Foot shoe stores, RCG currently pays a 6.1% dividend yield – fully franked – at a share price of 72.5 cents. What many don't realise is that the fastest growing part of the company is its RCG Brands business with brands such as Merrell, Cat and the recent acquisition of Saucony and Sperry businesses. RCG now has 18 Merrell stores and wholesale sales jumped 42% in the last half.
Reef Casino Trust (ASX: RCT)
At the current price of $3.05, Reef Casino is paying an 8.5% dividend yield – unfranked. Reef was the subject of a failed takeover attempt last year, as the bidder (Aquis) failed to get necessary approvals in time. Whether Aquis will come back for a second bite remains to be seen – but the company still appears keen to build a billion-dollar casino in Cairns. In the meantime, Reef is offering shareholders a whopping dividend.
