Some traditionally popular dividend shares such as Transurban Group (ASX: TCL) and Sydney Airport Holdings Ltd (ASX: SYD) have become so popular with investors in recent times that their share prices have been driven up. This has caused their dividend yields to fall below the market average.
Because of this I believe income investors are likely to get better results if they dig a little deeper and look beyond these popular picks. A few dividend shares which I think are in the bargain bin at present and represent great income investments are listed below:
FlexiGroup Limited (ASX: FXL)
FlexiGroup is a provider of leasing, vendor finance programs, interest free cards, mobile broadband, lay-by and other payment solutions to consumers and businesses. Its share price has plummeted over 27% this year over fears of its slowing growth and a government inquiry into small loan practices. As a result the company has gone through a major overhaul which I believe will reignite earnings growth once again. In my opinion FlexiGroup could prove to be a bargain buy, especially with its shares trading under 10x full year earnings and expected to provide a fully franked 6.4% dividend in FY 2017 according to CommSec.
G8 Education Ltd (ASX: GEM)
The share price of this leading childcare operator has dropped by 28% in the last three months. The majority of these declines can be attributed to the release of mixed half year results in August which revealed a drop in statutory net profit. But with management expecting a better second half and its shares expected to provide a full year fully franked 8.2% dividend, it is an increasingly tempting investment in my opinion.
Telstra Corporation Ltd (ASX: TLS)
It hasn't been a great year for the telecommunications giant and its shareholders. So far in 2016 Telstra's share price has plunged by around 11%. As disappointing as this is, it certainly could be considered an opportunity for income investors to buy in at a great price. Because of the share price drop this year, Telstra's shares are now expected to provide investors with a fully franked 6.3% dividend in FY 2017.
