Is Suncorp Group Ltd's MASSIVE dividend too good to ignore?

Suncorp Group Ltd (ASX:SUN) is expected to provide a fully franked 5.4% dividend this year. Should you invest in the insurer?

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There are a lot of dividend shares on the ASX, but few provide a fully franked yield as generous as Suncorp Group Ltd (ASX: SUN).

At the current share price the insurer is expected to provide investors with a fully franked 5.4% dividend in FY 2017 according to Commsec.

Not only does this thump term deposits, but it is also far greater than the 4.2% average yield available on the ASX and even trumps rivals QBE Insurance Group Ltd (ASX: QBE) and Insurance Australia Group Ltd (ASX: IAG).

This market-beating dividend yield is a great reason to invest in Suncorp, but it's not the only reason to do so.

Another thing I like in particular about the insurer at the moment is the new operating model it put in place in July 2016.

The Suncorp One strategy has been designed to simplify its business, improve customer satisfaction, and ultimately reduce churn. The integrated, customer-centric model enables its customers to choose from any products provided across its wide ranging brands through its online marketplace.

Suncorp has also looked at refreshing its branches as well. The company launched its first concept store last month, with two more expected to follow in the near future.

These stores have a look and feel of an Apple store and even provide customers with free workshops. For example, on Monday the store provided a masterclass on purchasing an investment property. On Friday there will be a budgeting masterclass.

I believe this is a great way of meeting the needs of millennials and ensuring that the Suncorp brand remains relevant in the years ahead.

Overall I'm confident that the new operating model will be a big success and expect this to be reflected in its half-year results next month.

So with its shares changing hands at 14x estimated FY 2017's earnings, now could be a great time to snap them up in my opinion.

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.

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