Searching for top dividend shares? Try these 4

QBE Insurance Group Ltd (ASX: QBE) is an insurer which for many years wowed the market as it grew its global business operations.

Since 2007 however it has been a story of continual disappointment for shareholders with the share price sinking from over $30 to around $11 today.

Despite poor share price performance for the best part of a decade, things could be starting to look up. Analyst consensus expectations show that dividends totalling 57 cents per share (cps) are forecast to be paid in calendar year 2016 with the payout forecast to leap to 83.5 cps in 2018.

With QBE’s share price currently trading at $11.30, QBE’s forecast yield in 2016 is 5% fully franked.

Exchange operator ASX Ltd (ASX: ASX) only grew its revenues at a compound average growth rate (CAGR) of 2.6% per annum (pa) over the past six years. Likewise, profits increased at a relatively muted rate of 3.9% pa CAGR over the same time period.

So, while the ASX might not be considered much of a growth stock any more, it could now arguably be considered an attractive and defensive income stock.

Despite its share price trading near multi-year highs, based on analyst consensus forecasts for dividends totalling 202 cps in 2017, the stock is offering up a prospective yield of 4.1% fully franked.

Diversified wealth management firm IOOF Holdings Limited (ASX: IFL) has failed to land a couple of acquisition targets recently. Nevertheless, there would appear to still be numerous bolt-on acquisition opportunities for the group.

While analyst consensus estimates suggest there will be no growth in either dividends or earnings over the next 12 months, the outlook for FY 2018 forecasts strong growth.

With a dividend estimate in FY 2017 of 54 cps, IOOF trades on a prospective yield of 5.9% fully franked.

Automotive Holdings Group Ltd (ASX: AHG) is one of Australia’s leading retailers of cars via a large network of automotive dealerships.

Despite its size, AHG operates in a very fragmented market which means there remains significant scope for the business to keep growing via bolt-on acquisitions.

This pipeline of growth opportunities is no doubt a factor in the positive growth forecasts that analyst consensus shows for the company over the next couple of years.

Based on a dividend forecast of approximately 25 cps in FY 2017, the stock is trading on a fully franked yield of 5.7%.


This "dirt cheap" company. is growing like gangbusters, and trading on a fat dividend yield, FULLY FRANKED. With interest rates set to stay at these low levels for years to come, for income-hungry investors, including SMSFs, this ASX company could be the "Holy Grail" of dividend plays for 2016. Click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required.

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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