Following last week's dismal GDP data many believe that the Reserve Bank of Australia will have to take rates lower in 2017.
With savers facing yet another year of record low rates, I believe investors in search of income should consider one of a number of high-quality dividend shares on the ASX.
Here are 10 dividend shares I'm tipping to shine in 2017:
Australian Pharmaceutical Industries Ltd (ASX: API)
The company behind the Priceline pharmacy brand had a great FY 2016 which led to an 18% jump in net profit after tax to $51.4 million. The good news is that management expects a similarly strong result this year. Its shares are forecast to provide investors with a fully franked 3.9% dividend over the next 12 months according to CommSec.
Blackmores Limited (ASX: BKL)
As long as things don't fall apart for the health supplements company in China like they did for the embattled Bellamy's Australia Ltd (ASX: BAL), Blackmores could be a great buy and hold investment. Especially with its shares expected to provide a fully franked 4% dividend in FY 2017.
Caltex Australia Limited (ASX: CTX)
The fuel retailer has suffered a disappointing year, but at long last its refiner margins have shown signs of improvement. With oil prices rising Caltex could be positioned for a much stronger year ahead. Its shares are forecast to provide a fully franked 3.5% dividend next year.
EBOS Group Ltd. (ASX: EBO)
This New Zealand-based marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products is expected to provide investors with a fully franked 4% dividend over the next 12 months. Management recently revealed a solid start to the year and has forecast for earnings growth of up to 10% this year.
Flight Centre Travel Group Ltd (ASX: FLT)
At 12x full year earnings I think this leading travel agent is just too cheap to ignore. Flight Centre has had a difficult time of late but management feels confident that the second half of FY 2017 will be a return to form. I'm willing to give management the benefit of the doubt with this, especially as its fully franked dividend is expected to yield 4.9% in the next 12 months.
Mantra Group Ltd (ASX: MTR)
Thanks to the tourism boom that Australia is experiencing I think this accommodation provider is a great buy and hold investment. An added bonus is that its shares are expected to provide a fully franked 4% dividend in FY 2017.
Orora Ltd (ASX: ORA)
Although it is only partially franked, at the current share price this fast-growing packaging company is forecast to provide a 3.6% dividend in FY 2017. As half of the company's revenue is derived from North America, a weakening Australian dollar should give its bottom line a boost.
Premier Investments Limited (ASX: PMV)
The company behind the Peter Alexander and Smiggle brands delivered yet another solid performance in FY 2016 which saw net profit rise 17.9% to $103.9 million. I expect more of the same in the year ahead, which should allow the company to continue to grow its dividend at a solid rate. In FY 2017 Premier Investment's shares are forecast to provide a fully franked 3.8% dividend.
RCG Corporation Ltd (ASX: RCG)
After a sharp drop in its share price this year, an investment in this leading shoe retailer is expected to provide a fully franked 4.3% dividend. Thanks partly to acquisitions, RCG has forecast for a 50% increase in underlying EBITDA in FY 2017. Now could be a great time to take a closer look at the company in my opinion.
Tassal Group Limited (ASX: TGR)
Rising demand and production issues in key export countries have led to salmon prices rocketing higher. This bodes well for Tassal and I expect a strong year ahead for the company. The forecast fully franked 4.3% dividend makes its shares even more appealing.
