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A great investment for income investors with a long time horizon is in dividend-paying companies such as Ainsworth Game Technology. Dividend stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Furthermore, Ainsworth Game Technology is considered undervalued, which means investors will benefit from both dividend income and capital gains over time. I’ve made a list of value-adding dividend-paying stocks for you to consider for your investment portfolio.
Ainsworth Game Technology Limited (ASX:AGI)
Ainsworth Game Technology Limited designs, develops, produces, leases, sells, and services gaming machines, and other related equipment and services. Ainsworth Game Technology was founded in 1995 and with the stock’s market cap sitting at AUD A$359.11M, it comes under the small-cap stocks category.
Ainsworth Game Technology has been paying dividend over the past 5 years. It currently paid an annual dividend of AU$0.03, resulting in a dividend yield of 2.78%. At the current payout ratio of 17.73%, AGI’s yield exceeds Australia’s low risk savings rate of 2.37%. Analysts forecast future payout ratio to be 42.36%, indicating that AGI’s upcoming dividend payments are well-covered by earnings. AGI is also trading beneath its true value by 58.15%, making AGI an attractive investment at the current share price of AU$1.08. Dig deeper into Ainsworth Game Technology here.
Australian Pharmaceutical Industries Limited (ASX:API)
Australian Pharmaceutical Industries Limited engages in the wholesale distribution of pharmaceutical, medical, health, beauty, and lifestyle products to pharmacies. Australian Pharmaceutical Industries was established in 1910 and with the market cap of AUD A$664.78M, it falls under the small-cap group.
Over the past 10 years, Australian Pharmaceutical Industries has been distributing dividends back to its shareholders, with a recent yield of 5.19%. At the current payout ratio of 71.30%, API has been able to sensibly grow its dividend per share in the last 10 years, raising its yield to above Australia’s low risk savings rate of 2.37%. In addition to this, API is also undervalued by 51.16%, meaning API can be bought at an attractive price right now. More on Australian Pharmaceutical Industries here.
Tassal Group Limited (ASX:TGR)
Tassal Group Limited, together with its subsidiaries, engages in hatching, farming, processing, marketing, and selling Atlantic salmon in Australia. Tassal Group was started in 1986 and with the company’s market cap sitting at AUD A$725.75M, it falls under the small-cap stocks category.