Giant telco Telstra Corporation Ltd (ASX: TLS) is a big favourite with investors, largely due to its reliable dividend. Its strong market presence and the highly liquid market for its shares adds some safety in the event of needing to liquidate your cash quickly.

Yet with the risks in Telstra increasing, and a number of other high-yielding companies on sale, are there better places to go for income investors to get their dividend fix? I think so.

WAM Capital Limited (ASX: WAM) – yields 6% fully franked

A listed investment company, WAM’s 6% dividend is actually marginally below Telstra’s. Yet it receives an honorary mention both for its outstanding long-term record – growth of 18% per annum since 1999 – and the diversification and investing expertise it brings to an investor’s portfolio. One key concern is that shares trade at a 20% premium to Net Tangible Assets of $2.05 per share.

Yet for investors looking for reliable dividends and growth over time, you could do a lot worse than to start building a position in WAM.

Thorn Group Ltd (ASX: TGA) – yields 6.6% fully franked

Thorn shares have fallen out of favour recently due to write-downs conducted at its most recent results as well as an investigation by the regulator into some of its operating practices. While Thorn says it has improved its compliance now, the issues are historical and could still result in penalties to the company.

However, Thorn’s dividend is well covered by existing earnings, and it has recently redeployed significant capital from its debt recovery business into its mainstream leasing business. This should lead to improved returns over time. While Thorn is higher risk in the sense that some of the risks (i.e. likelihood of regulatory penalties) are unknowable, it appears financially stable and investors are well compensated for the risk.

G8 Education Ltd (ASX: GEM) – yields 7.8% fully franked

Childcare operator G8 Education has also fallen out of favour after a sharp increase in costs and the fact that several of its recent acquisitions have not lived up to expectations when they were purchased. As shares dived, G8’s dividend has blown out to a whopping 7.8%. This appears sustainable as it is well covered by earnings.

Occupancy and costs remain a concern, although as I showed here and here, these metrics have remained quite constant for G8 over the past five years. Additionally it appears as though the recent half-year results could have been exaggerated by the seasonality of G8’s earnings (which are weighted to the second half of the year) and thus the company could be in a better position than the market expects – making G8 an attractive dividend idea today.

If you are interested in quality dividend shares, then I would also recommend this top dividend share. A strong yield and potential share price gains make this a great investment idea in my opinion.

Our Top Dividend Stock for 2016

Our resident dividend expert names his Top Dividend Share for 2016. Not only are the shares dirt cheap, the company is trading on a fat fully franked dividend yield. Simply click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required!

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Sean O'Neill owns shares of G8 Education Limited and Thorn Group Limited. 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.