Australian investors love their dividends, and for good reason!

Not only do they provide a reliable source of income (assuming you invest wisely), they often come with added tax benefits in the form of franking credits as well.

With Australia’s interest rates sitting at a record low of just 2% — and possibly going lower – and with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) sitting roughly 18% below last year’s high, now could be a great time to put some money to work in some of Australia’s most promising businesses.

Here are four ASX shares offering solid dividend yields and, importantly, decent growth potential as well.

  1. Wesfarmers Ltd (ASX: WES) is one of Australia’s biggest and best companies with brands such as Coles and Bunnings Warehouse under its umbrella. Bunnings has been growing like gangbusters in recent years, and will probably benefit from the demise of Woolworths Limited’s (ASX: WOW) Masters Home Improvement venture, while Wesfarmers’ strong balance sheet should provide some protection for investors if an economic downturn does eventuate. At $41.85 a share, the company offers investors a 4.8% fully franked dividend yield.
  2. Retail Food Group Limited (ASX: RFG) has a solid track record for growing earnings and dividends for shareholders, having done so consistently since its debut on the ASX almost a decade ago. The owner of brands such as Gloria Jean’s, Donut King and Pizza Capers also offers investors a 6% fully franked dividend yield, grossed to 8.5%.
  3. Transurban Group (ASX: TCL) owns and operates a number of toll roads in Australia and the United States. Obviously, commuters rely on the company’s roads in both countries to get to their destination faster and are happy to pay a fee for the ability to do so. The latest revenue data from the company also shows that revenue grew faster than traffic in almost all cities, highlighting the group’s pricing power. Although they’re only partially franked, the company offers a forecast dividend yield of 4.2%.
  4. JB Hi-Fi Limited (ASX: JBH) shares hit a fresh high of $23 on Friday but could still be decent value for long-term investors. JB Hi-Fi, Australia’s leading specialty electronics retailer, has consistently proven its ability to adapt to new trends, while it has also been a reliable investment for shareholders. At $23, the shares are offering a forecast yield of 4.1%, fully franked.

In my opinion, each of these companies are worth further research today although my favourite investment for new money would be Retail Food Group. Its shares have almost halved since hitting a high of $8 early last year, while the company itself has the potential to continue growing at a decent clip.

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Motley Fool contributor Ryan Newman owns shares of Retail Food Group Limited. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia owns shares of Retail Food Group Limited. 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.