Over the past 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fallen by almost 9%.
Meanwhile, the major banks led by Australia and New Zealand Banking Group (ASX: ANZ) have all fallen by more than the index.
Even if you haven't read a newspaper article or a broker's report in the past year, given the banks' underperformance it's reasonable to deduce that the market's view of the sector has soured.
While some investors will view the lower bank share prices as a buying opportunity, the complexity of analysing a bank's financial accounts and the apparent headwinds facing the sector from a tightening credit cycle make me wary.
If you're seeking high-yielding, fully franked dividend stocks, in my opinion there are better opportunities with lower levels of risk available.
Here are three to consider…
IOOF Holdings Limited (ASX: IFL) – the dividend expectations for this diversified financial services provider in financial year (FY) 2017 are for a pay-out of 55 cents per share (cps). With the share price currently trading at $8.06 this implies a yield of 6.8%.
Platinum Asset Management Limited (ASX: PTM) – dividend expectations for Platinum (which is one of Australia's leading international funds management firms) in FY 2017 are 37 cps. With the share price at $6.38 this implies a yield of 5.8%.
Telstra Corporation Ltd (ASX: TLS) – dividend expectations for Australia's largest telecommunications company are for 31.8 cps in FY 2017. With a share price of $5.53, the forecast yield is 5.7% (source: CommSec).
