Dividend Alert: This top stock pays a 4.1% yield with more to come

We all know that money sitting in a deposit account is earning a pittance of what it should. That’s why investors are looking to the sharemarket to boost their income.

When it comes to identifying a stock which offer that “happy” balance between, low risk, solid fully franked dividend yield, and the ability to provide capital appreciation via a growing share price, a stock which looks to have standout potential right now is Primary Health Care Limited (ASX: PRY).

Primary is an owner and operator of medical centres, diagnostic imaging services and provider of pathology services. Much like its peers Ramsay Health Care Limited (ASX: RHC) and Sonic Healthcare Limited (ASX: SHL), the services which Primary provides are non-discretionary and therefore the company’s revenue base is defensive.

Likewise, while there is always the risk of changes to Medicare and government policy, the earnings base of Primary is reasonably predictable and for the most part will grow at least in line with inflation over time. The quality of these earnings are high and in stark contrast to a commodity producer such as BHP Billiton Limited (ASX: BHP) where the earnings can swing widely from year-to-year.

A healthy dividend with more to come

For the financial year (FY) just ended, Primary is expected to pay a full year dividend of 19.1 cents per share (cps) according to Morningstar data. This puts the stock on a yield of 4.1%. However, when we look ahead to the current 2015 financial year the dividend is forecast to rise to 22.9 cps, implying a juicy forecast fully franked 4.9% dividend yield.

With the shares trading near their 52-week low and earnings and dividends set to rise, it could be time investors gave Primary Healthcare a check-up of its own!

Before you buy Primary Health Care discover our top dividend stock for 2014-2015

Before you hit the buy button on Primary shares, I suggest you also take a look at another great ASX stock which is in the buy zone right now. If this stock isn't in your portfolio yet then I highly recommend you consider it. Every year, Motley Fool investment advisor Scott Phillips hand-picks 1 ASX dividend stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Dividend Stock for 2014-2015" today.

Motley Fool contributor Tim McArthur owns shares in Primary Health Care Ltd.

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