Those chasing yields usually look to blue-chip stocks like the banks or big-name Real Estate Investment Trusts (REITs) like Goodman Group (ASX: GMG) or GPT Group (ASX: GPT).
Shareholders' hunt for dividends has seen the relative value of these companies' dividends fall however, leaving Westfield Group (ASX: WDC) and Westfield Retail Trust (ASX: WRT) as the clear leaders, with Westfield Retail Trust currently yielding 6.3%.
As Westfield attempts to restructure its businesses by geographic location, there is a significant amount of uncertainty around future business prospects, with a number of investors selling their shareholding in advance. The relatively high yield of both Westfield companies is due to negative market sentiment regarding the restructure.
The company I'm looking at however, boasts a whopping 7.5% dividend yield without the uncertainty, and the prospect of earnings growth in the future.
Property manager Cromwell Group (ASX: CMW) operates primarily in Australia, and is attempting to enter the New Zealand market by becoming a 50% partner in NZ property manager Oyster Group.
For the relatively low price of NZ$7.5 million (including bonuses for meeting financial targets), Cromwell gains exposure to a portfolio of property worth around $650 million. Better yet, as an emerging company, Oyster Group's prospects (and thus Cromwell's) should improve as its reputation and footprint expand.
The income-focussed investor will be delighted to know that Cromwell pays its distributions quarterly, which provide a much more regular revenue stream than half-yearly payments. The dividend is unfranked, but as an investor I would take 7.5% unfranked over 5% franked any day.
And, if you're not looking at making an immediate purchase, Morningstar estimates Cromwell to be 24% overvalued, which puts its 'real' dividend much closer to 10% if you are able to get a lower buy price.
Better still, the company looks to have fairly regular price fluctuations – improving your chances of getting a great price – making this absolutely one for the watchlist.
Best of all, The Motley Fool's top analyst recently released our free report on our Top Dividend Stock for 2014. With a fully-franked dividend nearly as juicy as Cromwell's, its strong growth prospects could send your earnings soaring too. To get it, simply click here to receive your report –, it is completely FREE.