If you're in the market for a dividend stock to buy and hold for the long term, I've got just the thing for you…
Below, I've listed three of my favourite current dividend stock ideas from the ASX.
Indeed, despite already owning one of them, I'd happily buy each of these three stocks at today's prices:
- Automotive Group Holdings Ltd (ASX: AHG)
Automotive Group is Australia's premier motor vehicle business. It has benefitted immensely from the ongoing demand for new motor vehicles in Australia – which have risen 58% over the past 10 years. Despite having around 167 car dealerships nationwide, Automotive Group isn't a one-trick-pony. Its refrigerated and non-refrigerated logistics businesses continue to grow healthily. At today's prices, its shares are forecast to yield a 5% fully franked dividend.
- WAM Capital Ltd (ASX: WAM)
WAM is a listed investment company. That means it uses its original shareholders' money to invest in assets like shares and fixed income. These provide an income stream and the chance to make capital gains over the long-term, which is exactly what Geoff Wilson's WAM Capital continues to do. Having provided an average yearly return of 17.8% since inception (before fees, taxes and expenses), shareholders can rest easy knowing their money is clearly managed well. Shares in WAM Capital currently trade on a 9% premium to the funds' underlying assets, but boast a trailing dividend yield of 6.4%.
- Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre is a fallen star in my opinion. After recently being heavily sold down by the market, this exceptional growth business now trades on a forward price-earnings ratio of just 13.6x and a dividend yield forecast to be 4.4% fully franked. It's got $500 million of cash on the balance sheet – enough to buy 1.5x Webjet Limited (ASX: WEB) Although the short-term outlook may provide for a turbulent ride, the long-term outlook for Flight Centre appears bright.
My favourite dividend stock idea…
I've already bought Flight Centre shares for my family's portfolio (see my disclosure below); however, there's another small ASX stock which makes up a huge 10% of the entire portfolio which you should know about.
