In a low interest rate environment, Commonwealth Bank of Australia (ASX: CBA) has been the go-to stock for both local and foreign investors. Its shares have risen a remarkable 68% since the beginning of 2012 (not including dividends) and they are now sitting just 2% below their all-time high price of $83.94.
Indeed, the 'defensive' nature of the bank, as well as its skyrocketing profits have been particularly appealing given the otherwise high level of uncertainty in the global marketplace in the aftermath of the GFC. But it has been the bank's lucrative, fully franked dividend that has kept investors around the globe coming back for more. With interest rates stuck at just 2.5%, investors have piled into the bank to take advantage of its hefty payout, and many have made a fortune along the way.
But there's so much more to consider than a company's dividend. The stock is now trading at an outlandish valuation, whereby investors who buy the stock could be committing themselves to years of underperformance – even despite the bank's current 4.9% fully franked yield.
However, you'll be pleased to know that there are still plenty of attractive, high-yielding opportunities available to investors – one of which is Coca-Cola Amatil Ltd (ASX: CCL). Although the company has had its fair share of problems over the last 18 months, there are some very encouraging signs to suggest conditions will begin to improve from here. As they do, investors can enjoy the beverage manufacturer's delicious 4.4% forecast yield, franked to 75%.
Supermarket giant Woolworths Limited (ASX: WOW) is also worth considering at today's price of $34.20. The shares have dropped recently as a result of a disappointing earnings update, but the long term is still looking bright. While it's not necessarily a bargain, it could be a great way to boost your dividend income thanks to its 4.1%, fully franked yield.
An investment in JB Hi-Fi Limited (ASX: JBH) today could also pay huge dividends going forward. Its shares are down considerably since the beginning of the year, yet the company has recorded reasonable sales growth and stands to benefit from the roll out of its new 'HOME' format stores. At today's low price of $16.13, the stock is trading on a forecast yield of 5.4%. When grossed-up for franking credits, that's a massive 7.7% yield!
