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Want dividend income? Here are 3 top ideas for you

Did you know that there are 84 stocks on the ASX paying a dividend yield of more than 5.5%? And all of them have market caps greater than $100 million, so they aren’t exactly speculative stocks.

So if the big four banks are the first thing you think of when looking for yield, consider that you might be missing out on smaller, cheaper and faster growing companies, paying bigger dividends than most of the banks, and beating the you-know-what out of term deposits.

Prime Media Group Limited (ASX: PRT) sports a 7% fully franked dividend yield. The company is the regional broadcaster for Channel Seven – owned by Seven West Media Limited (ASX: SWM). Currently trading on a P/E ratio of just 10.8, Prime looks cheap, and could be a ‘prime’ takeover target if media rules are relaxed to allow metropolitan broadcasters to takeover regional affiliates.

Alliance Aviation Services Ltd (ASX: AQZ) provides fly-in, fly-out services for resources, oils and gas companies, mainly in Queensland and Western Australia. Currently paying an 8.9% fully franked dividend yield, Alliance has also just announced a five-year deal with BHP Billiton Limited (ASX: BHP).

MACA Limited (ASX: MLD) is currently trading on a P/E ratio of just 5.7, possibly being the baby chucked out with the mining services bathwater. The company currently pays a fully franked dividend yield of 6%, and has reaffirmed 15% growth in revenues for this financial year. MACA is possibly one of the best opportunities on the ASX.

If those companies don’t tickle your fancy, Telstra Corporation Ltd (ASX: TLS) could pay a 6% dividend yield next year, while Insurance Australia Group (ASX: IAG) is rewarding shareholders with a 6.5% dividend. For possibly an even better bet, you might take a look at the following juicy stock…

One more company every income seeker must know! A grossed-up yield of 7%... plus double-digit profit growth!

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Motley Fool writer/analyst Mike King owns shares in Telstra Corporation. You can follow Mike on Twitter @TMFKinga

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