With the Reserve Bank holding rates at record lows this week, I believe investors in search of income are better off skipping term deposits and high interest savings accounts in favour of the share market.
The Australian share market is home to some fantastic companies that provide generous fully franked dividends. Three shares with massive yields which I think retirees should consider today are as follows:
I think Japara is far and away the best run company in the aged care sector. I also have confidence that its management team is capable of navigating the company through regulatory changes as and when they happen. Its shares already provide a trailing fully franked 5.9% dividend, but I expect this will increase in FY 2017. Thanks to the tailwinds from Australia’s ageing population, I believe Japara is positioned perfectly to grow earnings and its dividend at a strong rate over the next decade.
It may not have the growth potential of Vocus Group Ltd(ASX: VOC) and TPG Telecom Ltd(ASX: TPM), but I believe rising data usage and its expansion into Asia and the healthcare sector should provide the telco giant with the ability to grow earnings in the low-to-mid-single digits over the next few years. In FY 2017 its shares are expected to provide a fully franked 6.1% dividend according to CommSec.
This media and entertainment company’s theme parks have been struggling since the tragic incident at rival theme park Dreamworld. But there is hope. Yesterday Ardent Leisure Group(ASX: AAD)updated the market on its traffic numbers. Although visitor numbers have fallen sharply, there have been signs of improvement in recent weeks. I expect it to be a similar story at Village Roadshow. This could make it an opportune time to snap up its shares, especially as they are expected to provide a fully franked 6.5% dividend in FY 2017 according to CommSec.
There is a fourth high-yielding dividend share. With its international expansion and long history of dividend increases, it could easily be the best dividend share to own on the ASX in my opinion.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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