Boost your income in 2014 with these 4 stocks

Australia’s low interest rate environment has seen more and more investors turn their heads on term deposits or other forms of investment and instead turn towards the stock market, where the search for high-yielding stocks has seen the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) climb to fresh multi-year highs.

Over the course of 2013, the big four banks – being ANZ (ASX: ANZ), NAB (ASX: NAB) Commonwealth Bank (ASX: CBA) and Westpac (ASX: WBC) – as well as Woolworths (ASX: WOW) and Wesfarmers (ASX: WES), have been amongst the most popular stocks for investors.

And why not? After all, their dividends alone have returned more than what would have been recognised in interest from a term deposit, not to mention the impressive appreciation in stock price. While interest rates are currently sitting at a record low of 2.5%, a number of analysts have forecast them to fall even lower over the next year – perhaps to as low as just 2%!

As such, if you’re looking for some stock ideas that will provide you with a greater income stream, then look no further than these four companies:

Telstra (ASX: TLS): Investors wanting to boost their income cannot look past this telecommunications behemoth. While its share price has appreciated substantially over the last three years, there is plenty of room left to grow as it tightens its grasp over Australia’s telecommunications industry. At today’s price of $5.19 per share, the telco offers a 5.5% dividend yield.

Myer (ASX: MYR): Myer is another good option for investors to consider. As consumer confidence begins to return (which would be boosted should interest rates be cut), Myer’s earnings should increase, as should its share price. Shares are currently trading at $2.73 and offer a 6.5% yield, fully franked.

Metcash Limited (ASX: MTS): The wholesale distribution and marketing company currently offers a fully franked dividend yield of 7.3%. The company recently reported an increase in net profit after tax (NPAT) for the half-year ending 31 October 2013 of 20.6%. As well as a 4.9% increase in revenues compared to the prior corresponding period.

Collection House (ASX: CLH): The receivables management group has enormous growth potential and continues to increase its earnings and profitability under a strong management team. While its shares are likely to continue climbing for years to come, the company also offers a very generous 4.2% fully franked dividend yield.

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Motley Fool contributor Ryan Newman owns shares in Collection House.

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