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These 5 stocks have a higher dividend than Telstra

Telstra (ASX: TLS) has for quite some time now been a ‘go-to’ stock for investors looking for a reliable and high dividend yield. Currently Telstra is trading on a trailing dividend yield of 5.6%. Its forecast dividend yield of 5.8% assumes the full-year dividend is increased in financial year (FY) 2014 from 28 cents per share (cps) to 29 cps.

While the solid cash flows and blue-chip nature of Telstra makes its dividend highly secure, for investors prepared to accept more ‘risk’ there are opportunities to purchase stocks offering an even higher dividend yield.

Here are five stocks which investors seeking high yields might consider taking a closer look at. (All consensus forecasts are based on research by Morningstar).

Prime Media Group (ASX: PRT) is forecast to pay a fully franked dividend of 7.3 cps in FY 2014, which equates to a 7.3% dividend yield based on Prime’s last traded price of $1.

Sigma Pharmaceuticals (ASX: SIP) is forecast to pay dividends totalling 4 cps fully franked in FY 2014, with the shares currently trading at 63 cents that implies a dividend yield of 6.3%.

Pacific Brands (ASX: PBG) is currently trading at 63 cents and is forecast to pay 4.9 cps of fully franked dividends in FY 2014, placing the stock on a forecast dividend yield of 7.8%.

Oakton (ASX: OKN) is forecast to pay fully franked dividends of 9.5 cps – in line with the prior year – implying a forecast dividend yield of 6.2%.

Data3 (ASX: DTL) like Oakton provides IT services and is also forecast to maintain a constant dividend in FY 2014. Based on a 7 cps fully franked dividend the stock is trading on a forecast dividend yield of 6.8%.

Foolish takeaway

While the value of a solid defensive business such as Telstra is highly appealing, investors certainly deserve to be compensated for taking higher risks. For those investors there is the potential for higher returns. Any of the five companies above offer that potential.

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Motley Fool contributor Tim McArthur owns shares in Pacific Brands.

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