3 shares with bigger dividends than Westpac Banking Corp for your retirement portfolio

When it comes to dividends it is hard to beat the big four banks. For some time now they have been the first port of call for investors in search of income.

It’s not hard to see why. Right now Westpac Banking Corp (ASX: WBC) shares are expected by analysts to provide a fully franked 6.2% dividend in FY 2017 according to CommSec.

This is a great dividend and if you don’t have exposure to the banks already I believe it would be a great addition to most portfolios. But if you already have exposure to the banks, in order to stay diversified these three shares might be better options.

Dicker Data Ltd (ASX: DDR)

Dicker Data is a founder-led wholesale distributor of computer hardware, software, and related products and has had a great start to FY 2016. The company recently posted a 24.7% increase in half year net profit after tax to $25.6 million. During the period revenue jumped 11.1% to $590.3 million thanks in part to new vendors added last year, but largely due to a strong 6.7% rise in sales from existing vendors. At the current price its shares are expected to provide investors with a fully franked 8.3% annual dividend paid quarterly.

Spotless Group Holdings Ltd (ASX: SPO)

The shares of this leading cleaning and catering services company are expected to provide a partially franked 8% dividend in FY 2017. The company has been going through an incredibly hard time lately, causing a sell off of its shares that leaves them down by 45% in the last 12 months. But the good news is that Spotless chair Margaret Jackson believes the company has resolved these short-term issues and expects its strategy reset to provide growth and attractive returns in FY 2017 and beyond.

WAM Capital Limited (ASX: WAM)

This fund manager has grown its dividend by an average of 8% per year for the last five years and I wouldn’t be at all surprised to see it do the same next year. WAM Capital recently posted a record full year net profit after tax of $98 million thanks to alpha-generating investments in companies such as Mayne Pharma Group Ltd (ASX: MYX) and a2 Milk Company Ltd (Australia) (ASX: A2M). If it does indeed continue to grow its dividend at the same rate, investors will be looking at a fully franked 7% dividend in FY 2017.

Lastly, if you already own the above dividend shares then take a look at these three new breed blue chips. Each pay a solid, growing, fully franked dividend and could provide good share price gains in the next few months as well 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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