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4 income stocks I’d buy today with $5,000

Low interest rates have decimated the possible income received from term deposits for retirees and savers alike.

I think the best way to get a solid return from your capital is to invest it into stocks that pay a pleasing dividend or distribution. Businesses such as the following four could be a good boost for your income:

WAM Research Limited (ASX: WAX)

WAM Research is one of the high-performing listed investment companies run by Geoff Wilson and his investment team.

It focuses on the smaller, faster-growing end of the market, whilst keeping a good amount of cash on hand as well for safety and opportunities.

WAM Research aims to pay out an increasing stream of fully franked dividends whilst outperforming the market with its portfolio.

It’s currently trading with a grossed-up dividend yield of 8.45%.

Retail Food Group Limited (ASX: RFG)

Retail Food Group is the master franchisor behind food names like Gloria Jean’s, Crust Pizza, Michel’s Patisserie and Brumby’s.

It’s expanding its network overseas in the USA and China which could see the number of outlets and earnings per share grow nicely for years to come.

Retail Food Group is trading with a grossed-up dividend yield of 7.54%.

National Storage REIT (ASX: NSR)

National Storage is Australia’s largest provider of self-storage units.

The rising cost of house prices has put a premium on space and a lot of the time it financially makes sense to store items in a storage unit rather than in an extra bedroom or garage.

National Storage is trading with a distribution yield of 6.1%.

Greencross Limited (ASX: GXL)

This pet company is the operator of Greencross vets and Petbarns across Australia.

Its plan to co-locate vets inside Petbarn is a clever strategy because it produces an opportunity to cross-sell to customers and this expansion also costs less than acquiring a stand-alone vet practice.

The news of a potential problem with cat food has hit the share price and could make today’s price of $6.52 a good long-term buy for income and growth.

Greencross is currently trading with a grossed-up dividend yield of 4.16%.

Foolish takeaway

All four of the above businesses should be good options for income hunters. I think the current share prices and yields of WAM Research and Greencross are particularly attractive, these would be my picks.

For even more great dividend options you should check out our list of five good income opportunities.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Retail Food Group Limited. Motley Fool contributor Tristan Harrison owns shares of Greencross Limited and WAM Research Limited. The Motley Fool Australia owns shares of Greencross 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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