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Chuck on your XXL dividend T-shirt: It’s time to go shopping for retail stocks!

In the month of September, something extraordinary happened in Australian retail…

Yep, that’s right, you guessed it…

Retail sales finally provided some relief for long-suffering shareholders.

Led by the release of Apple’s iPhone 6, retail sales jumped 1.2 per cent in seasonally adjusted terms throughout September, according to the Australian Bureau of Statistics (ABS).

And so far, so good.

Retailers JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) are up 3.5% and 6.8%, respectively, since the beginning of October.

With share markets riding high, interest rates low and a frothy property market, it’s only a matter of time until retailers start posting stronger results.

With that in mind, here are four retail stocks offering up XXL dividends yields

1. RCG Corporation Limited (ASX: RCG) is the owner of The Athlete’s Foot and exclusive distributor of Merrell, Saucony and more. In its recent AGM presentation, the group highlighted a positive profit outlook for FY15 and expects three new Merrell store openings. Analysts are expecting a 7.2% fully franked dividend this year.

2. Retail Food Group Limited (ASX: RFG) is the franchisor and owner of popular takeaway stores such as Donut King, Brumby’s Bakery, Pizza Capers and much more. Most recently it announced the purchase of coffee chain Gloria Jeans. It offers a thumping 4% fully franked dividend yield.

3. Super Retail Group Ltd (ASX: SUL) is the owner of retail leisure stores such as Supercheap Auto, Rays Outdoors, Rebel and more. Its share price has suffered in 2014, falling 40% on the back of weak sales results. However if you’re a long-term investor, now could be the ideal time to get into the stock especially with a dividend yield of 5% fully franked.

4. Collins Foods Ltd (ASX: CKF) is the operator of KFC and Sizzler fast casual dining chains throughout Australia and Asia. It is busy growing its KFC franchise and rebranding its Sizzler restaurants. At current prices, the $210 million company yields a 5% fully franked dividend.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. 

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