Australia and New Zealand Banking Group (ASX: ANZ), Coca-Cola Amatil Ltd (ASX: CCL) and Wesfarmers Ltd (ASX: WES) are three of the ASX’s most popular shares for dividend income.

So with each company’s shares underperforming the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) in 2016 — and interest rates dropping to record lows — many investors are likely considering them as an addition to their portfolios.

ANZ Banking Group

During the past year, ANZ shares slumped 28% as concerns over its Asian exposure, as well as regulatory risk, came to the fore. While only time will tell if its share price fall was justified, ANZ’s exposure to Australia’s lucrative housing market will have some bargain hunters licking their lips.

At today’s prices, ANZ shares trade below 10 times last year’s earnings per share and are forecast to pay a dividend equivalent to 6.9% fully franked.

Coca-Cola Amatil

Following on from this article last week, I sold my family’s shares in Coca-Cola Amatil earlier this week.

For many years, Coca-Cola Amatil shares have threatened to move higher, but, if anything, have only gone backwards. I was — like many pundits continue to be — very positive on the long-term outlook for Coca-Cola’s demand in Indonesia. Unfortunately, the company has failed to make the progress it (and I!) would have liked.

With Schweppes and an increasingly health-conscious consumer breathing down the neck of Coca-Cola Amatil’s traditional businesses, it’s hard to envisage the company beating its target of ‘mid-single digit’ earnings per share growth without slashing costs. Shares trade on a partially franked trailing dividend yield of 5%.

Wesfarmers

Wesfarmers is an old-school conglomerate-style business and the owner of top Australian retail brands such as Coles, Bunnings Warehouse, Officeworks, Kmart, and Target. It also has interests in the resources and industrial sectors.

Wesfarmers has established itself as a reliable dividend payer, with its shares currently forecast to yield 5% fully franked. Further, over the long-term, both Bunnings Warehouse and Coles appear likely to continue widening their competitive advantage and profits.

Nonetheless, investors should be alert to the possibility of a price war among the supermarkets — and that they rarely work out well for the incumbents!

Foolish takeaway

At today’s prices, I think ANZ shares offer the most potential, yet they appear the riskiest over the medium-term. I think Wesfarmers is the best investment for income, but its shares don’t come cheap.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned in this article. You can follow Owen on Twitter @ASXinvest.

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.