I’m a big fan of Australia and New Zealand Banking Group (ASX: ANZ) and its fully franked 5.7% dividend. But with fears of rising bad debts and a housing market crash, I can completely understand why some investors want to avoid the banking sector.

The good news is that there are dividend shares out there that provide bigger yields than even ANZ. Here are three alternative to the banks that income investors can buy today:

Thorn Group Ltd (ASX: TGA)

Although Thorn Group carries regulatory risks from past activities, I believe at 9x full year earnings this has been fully priced into its shares. Last week’s half-year results were mixed, but showed signs of improvement. Whilst net profit fell 1.4% over the prior corresponding period, net profit from continuing operations increased 6.3%. This could be a sign that the turnaround is working. The company declared a fully franked 5.5 cent interim dividend, which equates to a 6% yield when annualised.

Telstra Corporation Ltd (ASX: TLS)

Whilst the telco giant’s earnings growth has slowed in recent times, I still believe its mobile phone segment, Asia-based operations, and venture into the healthcare sector could provide it with enough growth to at least maintain its generous dividend over the next few years. At present Telstra’s shares provide a trailing fully franked 6.3% dividend, which I find especially attractive in the current low interest environment.

Village Roadshow Ltd (ASX: VRL)

The film distributor and cinema and theme park operator has certainly had a difficult year. As a result of a mixed performance its share price is down 38% year to date. At this price its shares provide investors with a trailing fully franked 6.1% dividend. Since the Dreamworld incident the company has been experiencing lower visitor numbers at its own theme parks. Whilst I expect this will improve shortly, it may be prudent to wait until its half-year results to see if it has impacted the company before making an investment.

There is a fourth dividend share as well. Probably the best dividend share on the ASX and one which all income investors should have in their portfolio.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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.