Who else wants 3 smoking hot high dividend shares?

Due to a multitude of macro-economic factors the Australian dollar has been clawing its way back from its one-year low of buying just US 68.6 cents.

Currently, $1 is buying US 76.3 cents but retesting the one-year high of US 81.2 cents wouldn’t appear to be out of the question.

For this reason, Australian investors are awaiting anxiously the decision from the upcoming meeting of Board of the Reserve Bank of Australia (RBA) to be held in May.

While the RBA appears reluctant to cut the official cash rate below its current 2%, it’s also well known that the RBA is uncomfortable with the stubbornly high Australian dollar.

Whether the RBA announces a cut or holds rates steady in a fortnight’s time, investors’ insatiable appetite for high dividend yields is unlikely to abate.

Here are three high-yielding stock opportunities to help navigate your portfolio through this low interest rate environment.

While the earnings and dividends of insurers can be volatile, the outlook for dividends over the next few years from Suncorp Group Ltd (ASX: SUN) and Insurance Australia Group Ltd (ASX: IAG) appears reasonably consistent.

According to CommSec data, analysts expect Suncorp to pay dividends averaging around 75 cents per share (cps) over the next three years, implying a fully franked yield of 6.4%.

Meanwhile, IAG is expected to pay dividends averaging about 32 cps over the next three years which implies a fully franked yield of 6%.

Woolworths Limited (ASX: WOW) is also one for income-seeking investors to consider. The 30% slump in the supermarket operator’s share price has been in response to the market questioning the challenges faced by the group.

While the market is factoring in a decline in dividends as well as earnings, the forecast average dividend at around 93 cps would provide a fully franked yield of 4.5% to shareholders.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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