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9 whopping dividend yields to pounce on right now!

Dividend shares continue to be very popular amongst investors and this is unsurprising when you consider term deposits and most inner city investment properties are offering net income returns of less than 2.5%.

With interest rates expected to remain at historically low levels for some time to come, I think dividend shares are still a great option for risk-tolerant investors who want to generate market-leading returns over the medium term.

With that in mind, here are nine high-yielding shares that income-seeking investors might want to take a closer look at in 2017:

Company Market Cap P/E Ratio Dividend Yield Grossed Up Yield 5 Year Total Return
Macquarie Group Ltd (ASX: MQG)
$30.2 billion 14.6 4.7% 5.7% 31.7%
Mantra Group Ltd (ASX: MTR)
$800 million 15.7 4.4% 6.3% N/A
RCG Corporation Ltd (ASX: RCG)
$569 million 14.1 5.6% 8.0% 30.5%
Dicker Data Ltd (ASX: DDR)
$336 million 13.1 7.8% 11.1% 47.4%
Villa World Ltd (ASX: VLW)
 $273 million  7.9  7.5%  10.7%  29.0%
Retail Food Group Limited (ASX: RFG)
 $963 million  13.2 5.0%  7.1%  21.3%
Folkestone Education Trust (ASX: FET)
 $687 million 20.0 4.9% 4.9%  31.8%
WAM Capital Limited (ASX: WAM)
 $1.5 billion  11.9  6.2%  8.9%  17.0%
Vanguard Australian Shares High Yield ETF (ASX: VHY) $736 million 20.2 5.6%  7.4%  10.7%

Importantly, all the shares listed above have either flagged higher dividends over the coming year, or are in a strong position to increase their dividends over the next 12-18 months.

Along with the individual shares above, I have also highlighted a high-yielding exchange traded fund (ETF) operated by Vanguard. This is a simple and convenient option for those investors who may be more risk-averse, or do not have the resources to research individual shares.

However, one point to note about this ETF, and others like it, is that it is dominated by a relatively small number of shares with a fairly large weighting towards the big four banks, Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES). This means investors can expect to receive a fairly reliable dividend source, albeit at a pretty low growth rate.

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Motley Fool contributor Christopher Georges owns shares of Macquarie Group Limited, MANTRA GRP FPO, RCG Limited, and Retail Food Group Limited. The Motley Fool Australia owns shares of Retail Food Group Limited. 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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