With interest rates set to remain at their record low of just 2.5% for some time yet, high yielding dividend stocks will continue to be as important as ever before. However, while a number of the popular dividend sources like Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES) remain overpriced, you might be wondering where the better opportunities lie.
Here are five high yielding stocks you should consider to boost your income over the coming years…
- BHP Billiton Limited (ASX: BHP) has heavily underperformed the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) over the last five years, making it one of the worst performing blue chips in that time. While iron ore and coal are both under heavy pressure currently, the near-term could be a volatile time, but the miner's long-term prospects are looking solid – particularly with its exposure to potash. The stock yields an impressive 3.5%, fully franked yield.
- Amcor Limited (ASX: AMC) has consistently delivered investors with strong returns over the last half-decade and that looks set to continue well into the future. The global packaging company boasts impressive growth potential in emerging markets (it grew sales in China by 18% in the six months ending December 2013). While it is set to benefit when the Aussie dollar falls, it yields a generous 3.8% in the meantime.
- JB Hi-Fi Limited (ASX: JBH) has dropped significantly in value this year after rampaging in 2013. While it is possible that profit-taking has been behind some of that drop, it could also have been caused by falling consumer confidence. However, the company continues to deliver strong sales and has great growth potential as it unrolls its new 'Home' format stores. The stock yields a fully franked 4.2% dividend.
- New Hope Corporation Limited (ASX: NHC) has also been under enormous pressure recently with coal prices plummeting. In fact, the stock has dropped 60% in value since late 2011 to now be trading at just $2.60. Although the near-term outlook for coal is still cloudy, demand for the resource is expected to soar over the coming decades. The downside risk has largely been evaporated by its enormous drop and while investors wait for the stock to start rising in value, they can enjoy its fully franked 4.3% dividend yield.
- Telstra Corporation Ltd (ASX: TLS) might have rallied strongly in recent years, but it seems there's plenty of room left for it to run. The telco continues to gain customers from rival carriers and has plans to generate more than one third of its revenues from Asian markets by 2020. While Telstra is one of Australia's largest corporations (market capitalisation of $65.1 billion), it also offers a legendary 5.4% fully franked dividend yield.
Each of the stocks mentioned above have the potential to deliver investors with fantastic gains in the coming years. However, The Motley Fool's TOP analysts have uncovered more than a dozen other stocks to BUY which are also well worth your consideration today…
