Shares of BHP Billiton Limited (ASX: BHP), Sydney Airport Holdings Ltd (ASX: SYD), Australia and New Zealand Banking Group (ASX: ANZ) and Retail Food Group Limited (ASX: RFG) are forecast to pay dividends over 4%.
BHP Billiton
BHP Billiton, known as 'the Big Australian', is a multi-national mining and resources business. BHP's primary products are iron ore, oil, copper and coal. Despite its enormous size, however, BHP shares have been sold off over the past five years — falling 32% — despite a recent rally.
Given its dependence on the prices of commodities and its reliance on China to fuel demand for them, I don't think BHP is the safest dividend share on the ASX. According to analysts, BHP shares are forecast to pay dividends equivalent to a yield of 5.2% over the next year.
Sydney Airport
Shares/units in Australia's leading international airport are forecast to pay dividends of 5.3% in the year ahead. Although the company owns a premier asset in Sydney, its share price has fallen in recent months as concerns over the development of the Western Sydney airport and rising interest rates take a hold on the market's sentiment.
We'll know more about the development plans later this year, including whether or not Sydney Airport will take part in it. Shrewd investors might be willing to take a punt on the company now.
ANZ
ANZ needs no introduction, being Australia's third-largest bank with a total worth of around $94 billion. Under the watch of CEO Shayne Elliott, ANZ has refocused its attention to the local markets of Australia and New Zealand. This is in stark contrast to prior management which made Asia the priority of the bank.
At today's prices, ANZ is forecast to pay a fully franked dividend of 5%.
Retail Food Group
Retail Food Group is the name behind many popular brands like Gloria Jeans, Pizza Capers, Michel's Patisserie and much more. Recent allegations of underpayment of employees at Domino's Pizza Enterprises Ltd. (ASX: DMP) and 7 Eleven appears to have spooked the market in recent times. So too has the group's recent financial result. However, with its shares falling down 14% in three months, Retail Food's dividend yield has pushed higher, to around 5% fully franked.
Foolish Takeaway
Share dividends could be a great way to boost your income over time. However, it's important to note that unlike some term deposits, dividends are not guaranteed. And a falling share price can quickly wipe out the benefit from a dividend.
In my opinion, each of these companies should be on your dividend watchlist in 2017. If I were to pick one share today, it would be Retail Food Group.
