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5 income shares I’d love to buy with $5,000 today

Shares paying juicy dividends are great at making your hard-earned capital create a strong income. It’s even better when the shares are trading at attractive share prices.

Below are five shares trading at attractive value with big dividends:

Virtus Health Ltd (ASX: VRT) and Monash IVF Group Ltd (ASX: MVF)

Both of these IVF providers have taken big hits to their share price in recent weeks. Virtus disclosed that Medicare reported fresh IVF cycles were down by 6%, but Virtus cycles were down 7.2% because it lost market share to low-cost providers.

This could be the perfect time to buy either business, or both, as IVF becomes increasingly necessary for families to have children due to changing lifestyles and trying to have children at older ages.

Virtus has a grossed-up dividend yield of 7.73% and Monash IVF has a grossed-up dividend yield of 6.69%.

G8 Education Ltd (ASX: GEM)

G8 is one of the largest operators of childcare centres in Australia. It’s steadily acquiring more centres and has government support for its services, particularly as the current government wants to increase incentives.

It pays a quarterly dividend and currently has a grossed up yield of 9.5%.

DuluxGroup Limited (ASX: DLX)

Dulux has a market-leading position in the paint world in Australia, which means it can charge higher prices thanks to its reputation of quality.

Painting doesn’t go through large boom or busts like property can, which allows Dulux to pay a reliable, growing dividend. The grossed-up yield is currently 5.56%.

Sonic Healthcare Limited (ASX: SHL)

Sonic has a global pathology business, which has given it the foundations to maintain or increase its dividend every year since 1997.

Healthcare businesses are getting an increasing number of patients thanks to the global population increasing and many countries in the western world facing ageing demographics.

Sonic could remain one of the most reliable businesses on the ASX and it currently has a partially franked dividend yield of 3.36%.

Foolish takeaway

I think all five of these businesses will provide investors with good, growing dividends. If I had to narrow down the list to my favourite two at the current prices, it would be Dulux and G8 Education as I don’t think they are in as much danger of being disrupted as the others on this list. For an even better dividend stock than the above five, you should read about our number one dividend pick for 2017.

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Motley Fool contributor Tristan Harrison 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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