Smash term deposits and buy these 3 cheap dividend shares instead

Check out these shares if you want to smash term deposit rates out of the park!

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With earnings season behind us, I think now is a great time for income investors to consider which shares they should be adding to their portfolios in an attempt to smash the returns on offer from term deposits and 'bonus' savings accounts.

Many companies are yet to trade ex-dividend so this means investors buying shares today could potentially receive three dividend payments over the next 13 or so months.

With that in mind, investors looking to boost their dividend income might want to consider these three shares:

Retail Food Group Limited (ASX: RFG)

Although Retail Food Group shares have popped since delivering a solid full year result, I think they still offer good value for prospective investors. The company recently booked in another earnings accretive acquisition and is confident of delivering earnings growth of around 20% in FY17. Investors buying shares today will receive a final fully franked dividend of 14.5 cents per share, but more importantly, investors can also expect the dividend yield to grow to around 4.5% over the next 12 months according to analysts' estimates.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre might be a facing a number of headwinds at the moment but I think it still offers a compelling value proposition for investors willing to back the current management team. The company has outlined a range of new initiatives designed to kick start growth and still boasts an extremely strong balance sheet. Flight Centre has also flagged a number of capital management initiatives that could see some of that excess cash returned to shareholders. Investors buying today will receive a final fully franked dividend of 92 cents per share and look forward to a forecast dividend yield of around 4.4%.

Virtus Health Ltd (ASX: VRT)

The assisted reproductive services company has managed to successfully differentiate itself in the highly competitive Australian market and is now making solid progress on its expansion plans overseas. Virtus delivered a solid full year result last month and has a number of demographic tailwinds behind it that should support growth for many years to come. The company declared a final dividend of 15 cents per share and investors can look forward to an expected dividend yield of 4.1% beyond the current dividend payment.

Motley Fool contributor Christopher Georges owns shares of Retail Food Group Limited. The Motley Fool Australia owns shares of Retail Food Group Limited. 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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