The Motley Fool

The top 10 stocks for dividend investors

The hunt for yield is still on and shows no signs of slowing down, so if you’re looking for some ideas, have I got some tips for you.

And with the Reserve Bank of Australia expecting interest rates to remain low for the foreseeable future, rates available on term deposits are fairly mediocre while plenty of ASX-listed stocks are paying fully franked dividend yields of more than 5%.

Here are my top 10 dividend stocks for investors, in no particular order…

BC Iron Limited (ASX: BCI) is currently paying a whopping fully franked dividend yield of more than 11%, at its current price of $3.17. Add in a net cash balance of around $140 million and the iron ore producer looks tempting.

MACA Ltd (ASX: MLD) is also paying a whopping dividend yield of 12.6%, fully franked, at today’s price of $2.10. The junior mining services provider holds around half its market cap in cash, has no debt, and is trading on a prospective P/E ratio of 8.5.

Insurance Australia Group (ASX: IAG) has increased its full year dividend and is paying a fully franked yield of over 6%. Earnings are expected to increase next financial year thanks to recent acquisitions, which could see the dividend rise again.

Reef Casino Trust (ASX: RCT) is paying an unfranked dividend yield of around 7.6%. But investors could see a large short term return if a takeover of the Cairns casino property trust goes ahead as planned. Aquis International has offered $4.34 per share – a substantial premium to today’s $3.66 share price.

RCG Corporation Limited (ASX: RCG), the owner of the Athletes Foot chain of shoe stores, is paying a fully franked yield of 6.5% and has a policy of paying a very high proportion of after tax profits as dividends.

Coca-Cola Amatil Ltd (ASX: CCL) is paying a partly franked (75%) dividend yield of 5.2% at the current price of $9.67. But the troubled bottler appears to have hit some short-term turbulence, while its long-term outlook remains strong.

Countplus Limited (ASX: CUP) is paying a 7.1% fully franked dividend yield, at current prices of around $1.70. Mergers and acquisition activity in the accounting and wealth management sector has been rife in recent times – it only appears to be a matter of time before Countplus comes onto the radar of some of the bigger players.

Telstra Corporation Ltd (ASX: TLS) is well known for its dividend, and is still paying a fully franked 5.2% yield. A recently announced share buyback is also good news for retail shareholders.

Contango Microcap Limited (ASX: CTN), a listed investment company, is currently yielding 6.8%, 50% franked. The company’s investment portfolio has delivered annual returns of 17.5% since 2004, an outstanding record by any measure, and recent performance suggests more is ahead.

And last but not least, Seven West Media Ltd (ASX: SWM) which is paying a 5.8% fully franked dividend. The owner of Channel 7 as well as The West Australian newspaper and various digital sites, Seven is the dominant free-to-air broadcaster in Australia.

So there you have 10 varied stocks in multiple industries paying substantial dividend yields. If you want an even better bet…

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