Most people like to stick to what they know. Investors are no different and it's hardly surprising because ultimately it's human nature. People (including investors) shop at Woolworths Limited (ASX: WOW) and Coles – owned by Wesfarmers Ltd (ASX: WES) – so they are naturally attracted to the shares of these widely known business.
That's OK but if juicy dividends are what you're after then you might be better off looking outside your immediate comfort zone.
The rally in stocks has sent the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) to a six-year high and at this point not only are most listed companies looking fully valued but their dividend yields are looking less appealing too. For this reason investors may want to consider looking at some less well-known stocks which are offering much more attractive yields, take Genworth Mortgage Insurance Australia It (ASX: GMA) for example.
Genworth has only been listed on the ASX for one month having undertaken an IPO in late May, as such it is likely still unknown by many investors. Come FY 2015, analysts are forecasting the insurer should pay out 22.1 cents per share in fully franked dividends. With the stock price at $3.19 that equates to a juicy yield of 6.9%!
