What should you be doing with these five fully franked dividend stocks?

Super Retail Group Ltd

SUL Dividend Details
 
Delivered growth across all segments: Super Retail Group Ltd (ASX: SUL) delivered growth across all of its segments in the first half of 2016, wherein its Auto, Leisure and Sports Divisions sales rose by 6.1%, 4.1% and 7.2% respectively. Auto and Sports Divisions EBIT rose by 10.2% and 9.5% respectively. However, Leisure Division EBIT fell 40% due to stock clearance, rising sourcing costs and competition pressure. Moreover, the group incurred over $20 million non-cash impairment charges due to weak performance of old format of Ray’s stores. SUL is investing over $3.9 million for enhancing its digital capabilities. Therefore, SUL stock fell over 25.31% during this year to date (as of March 24, 2016).
 

Long term targets (Source: Company Reports)
 
On the other hand, Super Retail is investing over $53 million for opening new stores as well as refurbishing existing stores to drive its long term performance, as these stores perform better than the old format stores. SUL also enhanced its working capital management by improving its operating cash flow by 26% to $177 million during first half. Accordingly, we give a “Speculative buy” recommendation on this fully franked dividend yield stock at the current price of $8.50
 
 
SUL Daily Chart (Source: Thomson Reuters)
 

Mcmillan Shakespeare Ltd

MMS Dividend Details
 
Solid Group Remuneration Services business: McMillan Shakespeare Limited (ASX: MMS) recently reported that its subsidiary Interleasing (Australia) Limited was chosen among the vehicle leasing providers for NSW Government. McMillan Shakespeare has been winning new businesses which could be reflected in its first half of 2016 reporting a revenue rise by 34.4% to $243.5 million. Consequently the group’s NPAT surged by 25.1% to $38.9 million. Accordingly, MMS also enhanced its free cash flow by 54.0% to $53.9 million during the period.
 

MMS portfolio (Source: Company Reports)
 
Strong Group Remuneration Services business contributed to the group’s performance while MMS continues to add clients by winning salary packaging with NSW local health districts and retained two current contracts with the SA Government and Tasmania Health (both exclusive). MMS is expanding its portfolio via acquisitions of UFS and Anglo Scottish. The shares of McMillan Shakespeare surged by 10.12% in the last four weeks (As of March 24, 2016) and still trading at cheaper valuations with a reasonable P/E. We place a “BUY “on this dividend yield stock at the current price of  $12.62
 
 
MMS Daily Chart (Source: Thomson Reuters)
 

Caltex Australia Ltd

CTX Dividend Details
 
Decline in production: Caltex Australia Limited’s (ASX: CTX) February’s unlagged CRM fell to US$8.30/bbl as compared to the US$12.76/bbl in January due to ongoing pressure in the crude oil prices. The realized CRM for February also fell to US$8.44/bbl, against January 2016 CRM of US$13.52/bbl. As a result, sales from production in February declined to 435ML as compared to 494ML in January.
 

Refiner Margin Update (Source: Company Reports)
 
Accordingly, CTX stock plunged 13.54% during this year to date and declined 6.34% (as of March 24, 2016) in the last four weeks. On the other hand, the group’s off-market buy-back program of $270 million is still expected to support the stock. CTX stock thus recovered over 5.86% in the last five days (as of March 24, 2016) and we recommend investors to “HOLD” the stock at the current price of  $33.41
 
 
CTX Daily Chart (Source: Thomson Reuters)
 

Retail Food Group Limited

RFG Dividend Details
 
Management changes: Retail Food Group Limited (ASX: RFG) stock rose over 14.93% (as of March 24, 2016) in the last one month despite the group reporting that its Managing Director, A J (Tony) Alford would be succeeded by Andre Nell from July 2016. RFG generated strong performance under Alford leadership, while investors seem to be little concerned if Andre Nell could maintain this strong performance of the firm. On the other side, RFG delivered a strong NPAT rise by 27.1% to $32.1 million in the first half of 2016. The group is also on track to achieve more than 250 outlets by fiscal year of 2016 and opened new organic outlets in 41 countries during first half. RFG is expanding its international business via its Master Franchise Partner network and targeting growth through new store concepts like GJC Drive Thru, Michel’s Patisserie and Café. RFG has a decent dividend yield. Given the above, we recommend investors to maintain their investments in the stock as we give a “HOLD” rating at the current price of  $5.08
 
 
RFG Daily Chart (Source: Thomson Reuters)
 

G8 Education Ltd

GEM Dividend Details
 
Solid dividend yield: G8 Education Ltd (ASX: GEM) maintained its growth track by generating a revenue growth of 44% in fiscal year of 2015 to $703 million as compared to $488 million in 2014. GEM also delivered a strong like for like EBIT increase by 11% to $8.3 million against pcp, putting an end to investors’ concerns over its organic growth capabilities. GEM enhanced its network by 44 new centers during fiscal year of 2015. Overall, the group has 471 centers in Australia and 18 centers in Singapore leading to 35,221 licensed places. Despite the stock surging by 26.42% (as of March 24, 2016) in the last six months, we believe that G8 Education is still trading at attractive valuations with a reasonable P/E. GEM also has an outstanding dividend yield. We give a “BUY” recommendation on the stock at the current price of  $3.78
 
 
GEM Daily Chart (Source: Thomson Reuters)

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