With interest rates falling to just 2.25% and the local S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) climbing ever higher, these days there are not many quality dividend stocks trading under-the-radar of investors.
However that's not to say they no longer exist!
Indeed the following three dividend stocks should at least be on your watchlist because they offer both growth potential and dividend yield at a reasonable price.
1) G8 Education Ltd (ASX: GEM) is Australia's largest listed child care centre owner and operator. Despite an impressive track record of growing earnings and dividends, investors have shunned the stock in recent months, allowing it to slide 10% lower since the beginning of 2015. However at today's price, it's forecast to pay a dividend yield equivalent to 6.3% fully franked!
2) Collins Foods Ltd (ASX: CKF) is the owner and operator of selected KFC and Snag Stand restaurants throughout Australia. It is also the owner and operator of the Sizzler casual dining chain in Australia and Asia. Despite some lacklustre results in its latest half-year report, the company's share price is up 11% in 2015. Its shares trade on a price-earnings ratio of 14 and a dividend yield of 4.2% fully franked. Whilst the next 12 months could see some ups and downs in profits, it's certainly worth keeping an eye on at today's prices.
3) Collection House Limited (ASX: CLH) is a debt collections company with operations throughout Australia, New Zealand and the Philippines. Like Collins Foods, although its share price continues to push higher, its valuation appears reasonable. Currently shares trade on a forecast dividend yield of 4.1%, fully franked, and a P/E ratio of just 13.
