MENU

Here are 3 must buy dividend shares with market-beating yields

With term deposits and high interest savings accounts providing extremely slender yields, I believe investors in search of income would be better off looking to the share market.

Three dividend shares which I think income investors should take a close look at are listed below. Each pays a market-beating fully franked dividend, with plenty of room for growth in the future in my opinion.

Here they are:

Event Hospitality and Entertainment Ltd (ASX: EVT)

The shares of the company behind popular entertainment and accommodation brands such as Event Cinema, Rydges, and Thredbo Alpine Resort provide investors with a trailing fully franked 4.2% dividend. I feel Event could be in a position to grow its dividend substantially over the next decade thanks to the strong tailwinds the company is experiencing from Australia’s tourism boom. This could make it a great buy and hold investment in my opinion.

Flight Centre Travel Group Ltd (ASX: FLT)

At the current share price this leading travel agent provides investors with a trailing fully franked 4.6% dividend. Flight Centre may be going through a spot of turbulence at the moment, but I believe investments the travel agent has made in China and India has positioned it for solid long-term growth. With its shares down 33% in the last 12 months, now could be an opportune time to snap up some shares.

Suncorp Group Ltd (ASX: SUN)

The shares of this insurance giant currently provide a trailing fully franked 5.3% dividend. I believe this makes it one of the best on the ASX, especially with its new operating model gathering pace. In its recent half-year results, Suncorp reported an underlying insurance trading ratio of 11%, up from 10.1% during the prior corresponding period. The ITR is an important measure of profitability for an insurer and pleasingly is on a path to 12% according to management. Should it deliver on this then I believe Suncorp will be in a position to continue to grow its dividend further.

There is a fourth dividend share as well. With a market-beating yield and strong growth prospects, I believe this company is a must buy for investors in search of income.

We've just released our #1 dividend pick for 2017. And the winner is...

With its shares up 155% in just the last five years, this 'under the radar' consumer favourite is both a hot growth stock AND our expert's #1 dividend pick for 2017. Now we're pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is click the link below!

Simply click here to receive your copy of our brand-new FREE report, "The Motley Fool's Top Dividend Stock for 2017."

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.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.