I just bought this 1 BIG dividend stock

I don't often dabble in the retail sector given how fickle profits can be, but for this company I'm willing to make an exception for Retail Food Group Ltd (ASX:RFG).

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There's always something to fear in the sharemarket.

And if there wasn't something to fear, the returns on offer wouldn't be anywhere near as good as they are.

So if you are truly a long-term investor, you should welcome moments of volatility which so often arise in global financial markets.

1 BIG dividend stock I just bought

I don't write this stuff entirely for your benefit either.

Over the past two months, with the S&P/ASX 200 (index: ^AXJO) (ASX: XJO) falling 8.7%, I chucked more capital at three existing share positions and added a further three new companies to my portfolio.

For example, I bought Retail Food Group Ltd (ASX: RFG) last week.

Now, I know what you're thinking:

Isn't the Australian economy hurtling towards a rough patch?

Won't that hurt companies like Retail Food Group?

I'll admit, retailers are fickle – I've heard one retailer blame too much sunny weather for a bad profit result!

And they're perhaps more vulnerable to economic weakness because shonky consumer confidence levels can hang around for longer than many expect.

However, I believe Retail Food Group is one of the best-run retail companies on the ASX.

Moreover, the owner of popular names like Crust Pizzas, Donut King, Gloria Jeans, Pizza Capers and much more has a very strong position in markets that I think can be considered less sensitive to economic conditions than, say, an electronics retailer like JB Hi-Fi Limited (ASX: JBH).

From personal experience I know coffee would be one of the last things I give up when times get tough – although instant coffee is a viable short-term 'fix'.

RFG brands
Source: Retail Food Group FY15 Results Presentation

While some of the company's business lines may slow along with the economy, Retail Food Group's international expansion is well underway and provides both diversification and growth potential over the long-term.

Finally, as fellow Motley Fool contributor Sean O'Neill wrote earlier this week: "[Retail Food Group] shares are down 11% for the year despite the fact that Earnings per Share (EPS) grew by 35% during this time."

Indeed, shares look cheap today, and they trade at a trailing dividend yield of 5.5% fully franked, or 7.9% grossed up.

While the share price, and the company's dividend, may rise or fall year-over-year, I think Retail Food Group is a business which is here to stay.

And at current levels, investors are being offered a compelling entry price into a very good business.

Motley Fool contributor Owen Raskiewicz owns shares of Retail Food Group Limited. Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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