3 shares with bigger dividends than Westpac Banking Corp

Credit: Simon Cunningham

Following the broad Brexit sell-off the shares of Westpac Banking Corp (ASX: WBC) have dropped to a level that makes them incredibly tempting for investors in search of dividends.

At the current price the shares are expected to pay an estimated fully franked dividend of 6.5% in FY 2016. But a lot of investors have exposure to the banks already, so for those looking for a diverse portfolio I would recommend taking a look at these high-yield dividend shares instead.

FlexiGroup Limited (ASX: FXL)

Shareholders of this leading finance and leasing company have seen the value of their holdings drop by around 44% in 2016. This was the result of slowing earnings growth, senior management upheaval, and write-downs on underperforming assets. As disappointing as this has been it does now mean that its shares are expected to provide an estimated fully franked 8.6% dividend in FY 2017, according to CommSec. Management has advised that next year will be a year of transition, but that it expects the company to return to double-digit cash profit growth from FY 2018 onwards. If it can accomplish its objectives and turn around its fortunes I feel FlexiGroup will prove to be a rewarding investment.

G8 Education Ltd (ASX: GEM)

This leading childcare operator has a long history of paying a strong dividend and this year looks set to be no different. G8 Education is expected to pay an estimated fully franked 6.8% dividend in FY 2016. At 25.5 cents this will be the seventh consecutive year of dividend increases and a trend I expect could continue for some time to come. I believe G8 Education has a lot more room for growth ahead of it. At present the company owns 471 centres in Australia and 18 centres in Singapore, with management estimating there to be an addressable market of up to 4,000 centres.

Insurance Australia Group Ltd (ASX: IAG)

It has been a year of ups and downs for shareholders of Insurance Australia Group. Just six weeks ago the shares had hit a new 52-week high of $6.10, but following the east coast storms and the Brexit vote they find themselves almost 12% lower at $5.39. The good news for income investors is that the drop in its share price now means it is estimated to provide a fully franked 6.8% dividend in FY 2016. At the current price I believe that Insurance Australia Group is a great option for income investors that are looking to gain exposure to the insurance industry.

If you're looking for a few more ideas to bolster your portfolio then these 3 fantastic shares could be great picks. Each pays a solid fully franked dividend and could provide share price gains in the future in my opinion.

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Motley Fool contributor James Mickleboro 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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