It is fair to say that shares of National Australia Bank Ltd. (ASX: NAB), Flight Centre Travel Group Ltd (ASX: FLT) and Retail Food Group Limited (ASX: RFG) have a few hairs on them. But, they also pay huge dividends.
And so much of the time in the sharemarket the shares which make the best investments are the ones which most people have written off. After all, if you do the same thing as everyone else, you will get the same results.
Here is a brief look at these three juicy dividend stocks.
NAB
As Australia's third largest bank, chances are you will be familiar with the operations of NAB. While it is our country's fourth largest mortgage provider, NAB is dominant in the business banking market here and in New Zealand. Despite its valuable market share however, NAB has a troubled history abroad with its overseas interests weighing on its share price over the past decade.
Nonetheless, with CEO Andrew Thorburn at the helm NAB has begun to clean up its operations and is focused on its core assets. Shares of NAB are expected to pay a dividend equivalent to a yield of 6% fully franked.
Flight Centre
Flight Centre is Australia's leading bricks and mortar retail travel agent. Currently, the company is busy expanding abroad, particularly in Europe and North America, and pushing into corporate travel.
Flight Centre has suffered a series of profit downgrades in recent times, as investors and analysts also grew concerned about the threat of digital alternatives. It may be true that Flight Centre failed to capitalise on the rise of digital travel services. However, it is important to note that the company has an enviable track record of growth in spite of the rise of online bookings. In the year ahead Flight Centre is expected to pay a fully franked dividend of 4.5%.
Retail Food Group
Retail Food Group is not a popular brand by itself. However, it controls some of the most recognisable casual dining and fast food brands in Australia. Donut King, Brumby's Bakery, Crust Pizza, Pizza Capers, BB's cafe…the list goes on. But the crown in the jewel of Retail Food Group is its coffee interests, which include Gloria Jeans, Cafe2U, Di Bella, and Esquires. Collectively, the company's coffee interests account for over 60% of revenue.
At today's prices, Retail Food Group shares are expected to pay a fully franked dividend of 4.2%.
Buy, Hold or Sell
I think each of these shares could reward investors over the long-term (five years plus). However, each company has its own set of risks. Personally, I would choose Retail Food Group shares for growth and NAB shares for income.
