Macquarie Group Ltd (ASX: MQG) shares, Platinum Asset Management Ltd (ASX: PTM) shares and Mantra Group Ltd (ASX: MTR) shares pay appetising dividends.
Here's what you need to know about each company.
Macquarie Group
Macquarie is Australia's largest investment bank, earning the largest chunk of its revenue from international markets. Macquarie's businesses can be split in two. The first is their 'annuity-style' arm, which includes the asset management, leasing and banking and financial services businesses. They are called 'annuity' businesses because they are reliable longer-term earners of revenue. These businesses have been a key focus of the company since the Global Financial Crisis (GFC).
The other arm of Macquarie is the 'capital markets' businesses, which includes the businesses that are more exposed to the activity in financial markets. These businesses are more cyclical.
Overall, Macquarie is Australia's leading international banking group and a highly profitable one at that. It is expected to pay a partially franked dividend of over 5% in the year ahead.
Platinum Asset Management
Platinum is a funds management business. Meaning, it accepts people's money and invests it on their behalf. The company earns fees based on performance and the total amount of funds under management (FUM).
Platinum's long-term investing record is enviable. However, 2014 saw the departure of some of Platinum's key investing personnel, and a couple of years of mild underperformance led to some investors pulling their money from the company.
However, Platinum remains a high-quality investment company with very good profit margins. While further FUM outflows would hurt profit, the company's current valuation and 6% dividend appear compelling.
Mantra Group
Mantra is Australia's second largest resorts and hotel operator with almost 18,000 hotel rooms. The company does not own or manage all of its properties, instead, it leases out its brands and systems to property managers across Australia and New Zealand.
Some critics of Mantra believe the company is ripe for disruption from the likes of Airbnb and point to a poor supply and demand imbalance of hotel rooms. In 2017, Mantra stood head and shoulders above its competitors in terms of rooms and hotels added.
However, some investors have pointed to a long-term trend in rising international tourism and spending in Australian cities, especially from Asian visitors.
Shares of Mantra are forecast by analysts to pay dividends equivalent to 4.5% fully franked.
Foolish Takeaway
If you are prepared to stomach the higher risk of holding shares in companies that will rise and fall in tune with the broader economy, I think these shares should be on your watchlist. I recently bought one of them for my personal portfolio (see below).
