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3 companies paying higher than 8% fully franked dividends

With the official cash rate at 2.5% and the best term deposit rates struggling to hit 4%, what could be better than a fully-franked 8% dividend yield? Traditional go-to high dividend companies, the big four banks, have seen their share prices pushed to extraordinary levels, and their yields are all in danger of having a 4 in front them in the near future.

Here are three industrial companies paying fully-franked dividend yields of more than DOUBLE the best rate investors could see in a term deposit, and much better than the banks.

Salmat Limited (ASX: SLM)

The provider of contact centres for other companies as well as customer acquisition and marketing services is currently trading on a historical dividend yield of 8.3%. While Salmat recently announced a profit downgrade, the company did increase its dividend in the last half year from 4 cents to 7.5 cents. And Salmat could continue to pay out at those levels with 15% growth in sales forecast for the next financial year.

Alliance Aviation Services Ltd (ASX: AQZ)

An airline that has focused on providing fly-in, fly-out (FIFO) services to remote regions of Australia, Alliance is paying a trailing fully franked dividend yield of 8.7%. Just last week the company announced a 5-year contract to supply FIFO services for BHP Billiton Limited (ASX: BHP) in Western Australia. The company says it has a strong financial outlook for the 2015 financial year, with net profit forecast to rise 50% over 2014, based on existing contracts only. Holdings Limited (ASX: WTF)

With the company’s share price falling by half in the past year, from above $5.00 to $2.34 currently, speculation is rising that the hotels and travel booking website is being eyed up by much larger predators, including US giants Expedia and Priceline. Paying a fully franked dividend yield of over 9%, may well surprise investors and bounce back from its current ails – or be taken over by an impatient competitor.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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