Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and Australia and New Zealand Banking Group (ASX: ANZ) all pay nice fully franked dividends. However, if you want to grow your portfolio and earn a decent yield along the way, I would look at the following three dividend-growth companies.
Event Hospitality & Entertainment Ltd (ASX: EVT)
Event is a conglomerate with multiple operating units including cinema exhibition (Event Cinemas), and ownership of hotels and resorts such as Rydges, QT, and the Thredbo Alpine Resort. It also owns the Sydney State Theatre and a portfolio of property investments. It's a well run conglomerate, with significant insider ownership, a rock solid balance sheet, and a track record of long-term shareholder value creation.
I believe this company can deliver market-beating growth over the next decade and the shares currently provide a fully franked 3.8% dividend.
Greencross Limited (ASX: GXL)
With over 230 retail outlets and 160 veterinary clinics, Greencross is the leader in pet care and retail in Australia and New Zealand. The pet care market in Australia is estimated to be worth around $9 billion in yearly revenue. Greencross is the largest player, but with only an 8% share in a fragmented market I see significant growth for the company.
At 16 times trailing earnings, you get to buy a business with above-market growth potential at a less-than-average market multiple. And the icing on the cake is a fully-franked 3% yield.
TPG Telecom Ltd (ASX: TPM)
Australia's second-largest fixed broadband provider has been in the news lately. Recently, the company announced that it has won a new spectrum to build its own mobile network in Australia, bringing competition to the doors of Telstra Corporation Ltd (ASX:TLS), Optus, and Vodafone.
TPG is also building a mobile network in Singapore. I believe TPG is well placed to leverage its country-wide network to increase market share and operating earnings, and the addition of mobile will give the company more options in terms of winning customers potentially by offering bundles. Chairman and CEO David Teoh has a long history of shareholder value creation and with significant ownership of the company, his interests are aligned with the shareholders. TPG currently provides a fully franked 2.8% dividend.
