Will aged care stocks fall 10% tomorrow?, page-11

3 under-the-radar high-yielding dividend shares to buy today
James Mickleboro | January 24, 2017 | More on: FXL JHCMVF



With the big four banks looking a little on the expensive side right now, I believe investors are better off looking elsewhere for their income investments.

For example, there are three high-yielding dividend shares which are flying largely under the radar at the moment which I think could be great options for investors. They are as follows:

FlexiGroup Limited (ASX: FXL)

In FY 2017 this provider of finance products and payment solutions is expected to provide investors with a fully franked 6.1% dividend according to CommSec. Although the company has posted a few mixed years, I feel confident it has finally found its feet and is positioned for growth. The recent launch of Oxipay could be a key driver of growth in the future. Like Afterpay Holdings Ltd (ASX: AFY) and zipMoney Ltd (ASX: ZML), it allows consumers to make purchases in-store or online and spread the payment over four instalments with zero interest. However, due to its mixed past performance, I would suggest waiting until its half-year update next month before taking the plunge.

Japara Healthcare Ltd (ASX: JHC)

This aged care operator’s shares currently provide a trailing fully franked 5.2% dividend. I expect this dividend could grow significantly over the next decade as Australia’s population ages and demand for its beds increases. After its struggles in FY 2016, I am optimistic that FY 2017 will be a different story for shareholders. At its AGM management advised that it forecasts earnings before interest, tax, depreciation, and amortisation growth of 11% this year, and I expect it to deliver on this. As a result, now could be a great time to snap up its shares in my opinion.

Monash IVF Group Ltd (ASX: MVF)

This leading fertility specialist which operates under the Monash IVF, MyIVF, Next Generation Fertility and Repromed brands is expected to provide a fully franked 5% dividend over the next 12 months. Although it reported slowing domestic growth in the first quarter, I was pleased to see management still forecasting half-year profit growth of approximately 7%. At under 15x trailing earnings I feel its shares are great value. Especially as the company has significant long-term growth potential from fractured international markets.

Finally, there is a fourth dividend share which I feel all income investors should have in their portfolio. Ten consecutive years of dividend increases make this a no-brainer. Perhaps best of all is that its big yield is available at a great price even today.

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