3 delicious dividend stocks ripe for the picking

Where do you go for dividends when the banks become overpriced?

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Where can you go for great dividends?

As recently as 18 months ago, that question would have had a simple answer. You would have gone straight to one of the big four banks or supermarket giants Woolworths Limited (ASX: WOW) and Wesfarmers Ltd (ASX: WES), or even the likes of CSL Limited (ASX: CSL). Each of these strong companies yielded more than you would have recognised from investing in a term deposit.

However, the problem investors are now facing is that, although these companies still boast enormous yields, many have become overpriced. Commonwealth Bank of Australia (ASX: CBA) or Westpac Banking Corp (ASX: WBC), for instance, still yield 5.02% and 5.27% respectively, but their high-priced shares are very unlikely to outpace the market’s returns in the long-run.

The good news is that there are plenty of other options available to you, many of which have enormous growth potential ahead of them. Here are three stocks which you could consider adding to your portfolio today:

Telstra Corporation Ltd (ASX: TLS): Although the telecommunications behemoth has rallied strongly over the last three years, there is still plenty to like. In addition to its 5.7% fully franked dividend yield, the company will continue to benefit as businesses and consumers become more and more reliant on smartphones and broadband services while its service levels are also seen to be that much better than most of its competitors. Shares have fallen back to $5.02 after hitting a recent high of $5.30, making now an excellent time to buy in.

Westfield Group (ASX: WDC): Unlike Telstra, the global shopping centre operator’s shares have significantly lagged the market’s returns over the last five years, with investors fearing the rapidly expanding online retail sector. However, the company is strategically strengthening its balance sheet and setting itself up for a promising future. At $10.28 a share, Westfield boasts a 5% dividend yield and is trading on a P/E ratio of just 13.8.

Village Roadshow Limited (ASX: VRL): The entertainment and media company is another excellent stock to consider. It has delivered investors with fantastic returns over the last five years and looks set to continue doing so. It is focused on releasing between 6-8 movies per year while it also recently opened a new Wet ‘n’ Wild Sydney theme park which has already attracted great crowds. The stock yields a very attractive fully franked 4.3% dividend yield.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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