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Forget National Australia Bank Ltd and snap up these high-yielding dividend shares instead

Whilst Australia’s big four banks pay some of the most generous dividends on the ASX, I have concerns that their valuations have become a little stretched of late.

Because of this I believe there is far more downside risk than upside potential for their shares at present.

For this reason I would suggest investors hold off starting an investment in National Australia Bank Ltd. (ASX: NAB) shares and look at these quality dividend shares instead:

Event Hospitality and Entertainment Ltd (ASX: EVT)

Event is the company behind leading accommodation and entertainment brands such as Thredbo resorts, Rydges hotels, and Event cinemas. Although its half-year result was a touch disappointing, I believe this was largely down to a freakishly strong performance from the company’s cinema businesses in the prior corresponding period. I expect things to improve greatly next year, especially with the company in a strong position to profit from the Australian tourism boom. At present its shares provide a trailing fully franked 4.2% dividend.

Flight Centre Travel Group Ltd (ASX: FLT)

This leading travel agent provides investors with a trailing fully franked yield of 4.7%. Although times have been hard for the company, I remain confident that the investments it has made have set it up for strong long-term growth. Two notable investments are Shenzhen Sunny Holiday International in China and Bengaluru-based Travel Tours Group. Although they are unlikely to have a significant impact on its near-term results, I feel its presence in these two rapidly growing markets could prove to be very lucrative in the future.

Mantra Group Ltd (ASX: MTR)

Although this accommodation provider’s CBD portfolio has been a bit of a disappointment in the last two years, I trust management to turn things around to complement the strong performance of the rest of the business. Much like Event, I believe Mantra is in a great position to profit from the tourism boom. As demand for its rooms increase, I believe the company will see higher occupancy levels and increasing average room rates. I expect this will put Mantra in a position to grow its generous trailing fully franked 4% dividend significantly over the next decade.

Finally, this dividend share could be even better. Over a decade of dividend increases makes it my favourite on the ASX.

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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.

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