Investors looking to buy high-yielding stocks will often identify real estate investment trusts (REIT), infrastructure and utility companies as stocks with appealing dividends.
One thing investors need to be aware of though is that often the dividends paid by firms in these sectors are unfranked, which means on an after-tax basis the stated yield is less appealing. Conversely, many industrial companies pay fully-franked dividend yields that actually understate the yield that many investors will receive on an after-tax basis.
Here are three stocks that all pay fully-franked dividend yields and that are trading on forecast yields of over 6% based on Morningstar's consensus data.
Chandler Macleod Group (ASX: CMG) is a human resources (HR) outsourcing and recruitment company. Earnings per share (EPS) are forecast to rise from 4 cents per share (cps) to 5.1 cps in the current year; while dividends are forecast to fall from 3.2 cps to 3.1 cps. With the shares at 49 cents, Chandler Macleod is trading on a forecast dividend yield of 6.3%.
Countplus (ASX: CUP) is an aggregator of accounting and financial planning businesses. The firm operates from around 37 locations and has a market capitalisation of $209 million. Given the firm's exposure to accountancy services, its earnings base should be relatively stable. While EPS are forecast to rise from 9.9 cps to 13 cps, the dividend is forecast to remain flat at 12 cps this year. With the share price currently at $1.91, Countplus is trading on a forecast dividend yield of 6.3%.
Myer (ASX: MYR) is a department store operator well known to most investors. Despite a difficult trading environment and ongoing pressures from online retailing, earnings and dividends over the next two years are forecast to remain relatively flat. For financial year 2014, Morningstar is forecasting EPS of 19.7 cps and dividends totalling 17 cps. With the shares selling for $2.81, Myer is trading on a forecast dividend yield of 6%.
Foolish takeaway
Given the run-up in the share prices of the big four banks, investors hungry for high dividend yields may want to consider taking a look at some lesser followed stocks which are offering more appealing yields.
