3 ASX shares with even bigger dividends than Australia and New Zealand Banking Group

Credit: Simon Cunningham

In FY 2017 the shares of Australia and New Zealand Banking Group (ASX: ANZ) are expected by analysts to provide investors with a strong fully franked 6% dividend, according to CommSec.

Along with the fact that its shares are changing hands at just 1.3x book value, this makes the banking giant a good investment in my opinion. Especially for those in search of income in this low interest environment.

But for those investors that already have exposure to the banking sector, here are three strong dividend shares you can buy today.

Collection House Limited (ASX: CLH)

Collection House is one of Australia’s leading debt collectors and hasn’t been having the best of times of late. This was because earlier this year the company advised that it had been facing increased competition in the Purchased Debt Ledger (PDL) market, which had investors worried about its ability to generate revenue. But thankfully an update in April revealed that it had at last been successful in the market and made further PDL acquisitions. Although full year results are likely to be lower this year, I believe next year the company will return to growth. This could make it an opportune time to invest in the company. Especially at 9x trailing earnings with an estimated fully franked 6.5% full year dividend.

Cover-More Group Ltd (ASX: CVO)

Leading travel insurer Cover-More is another company which has seen its share price take a dive this year. This came following an unexpected profit downgrade caused by higher than anticipated insurance claims costs. But management has revealed that it has been hard at work on these underwriting issues and I fully expect that it will bounce back stronger as a result of changes it makes. Because of a sell off that followed the profit downgrade, its shares are now expected to provide an estimated 6.4% dividend in the next fiscal year.

WAM Capital Limited (ASX: WAM)

Following another strong performance this year which saw net profit grow 81.5% to $98 million, fund manager WAM Capital increased its full year dividend for the seventh consecutive year from 14 cents to 14.5 cents per share. Judging by the astute investments it has been making in the likes of Mayne Pharma Group Ltd (ASX: MYX) and Orora Ltd (ASX: ORA), I wouldn’t be surprised to see another year of bumper profits in FY 2017. With the shares already providing a very generous fully franked 6.3% dividend, now could be a great time to add it to your portfolio.

Alternatively, these three new breed blue chips offer investors growing fully franked dividends. Definitely worth a quick look at 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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