4 high-yield dividend shares you won’t need to babysit

Given the paltry returns available on term deposits or standard saving accounts with the big banks many investors will rightly be interested in shares that offer some term-deposit-thumping yields.

Of course it’s no use buying a share for its yield if the value of your capital falls more than the yield on offer, which is why it’s critical investors look to strong businesses, on reasonable valuations with sound outlooks. This will give you the best chance of maximising the returns you can generate on saved up cash.

Below I have four high-yield dividend shares that I believe trade on reasonable valuations relative to their outlooks.

Macquarie Group Ltd (ASX: MQG) shares currently sell for $64.26, which means the group offers a bumper partially franked estimated yield in the region of 5.5% over the current financial year. Macquarie has a market-thumping track record thanks to its focus on long-term shareholder returns and today’s price looks an attractive entry point for exposure to possibly Australia’s best financial services business.

Altium Limited (ASX: ALU) is a fast-growing tech stock that manufactures printed circuit boards that are used in everyday electronic devices that are connected to the Internet. Today shares sell for $5.95, with analysts expecting the group to pay out 27.8 cents per shares over the 2016 financial year. This places the business on an estimated yield of 4.7% and it looks a buy.

Westfield Corp Ltd (ASX: WFD) operates the US and UK shopping centres of the family run Westfield businesses. The group offers investors overseas exposure, defensive earnings streams, excellent management, and a big development pipeline. The recent interim dividend was equivalent to 17.65 cents per share and the full year yield should be around 3.6% as the group continues to invest for capital growth. I would not bet against its long-term success and shares look a buy at $9.87.

Wesfarmers Ltd (ASX: WES) is another rock-solid business that is delivering decent same-store sales growth at its Coles supermarkets thanks in part due to the failings of its rival Woolworths Limited (ASX: WOW). It’s also moving its Bunnings brand into the UK’s home improvement market in a move I expect will deliver long-term success. The stock could be expected to yield a fully franked 5% over the current financial year. At $40.44, shares look a buy.

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Motley Fool contributor Tom Richardson owns shares of Macquarie Group Limited and Westfield. The Motley Fool Australia owns shares of Altium.

You can find Tom on Twitter @tommyr345

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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