3 high-yielding dividend alternatives to Westpac Banking Corp

Credit: GotCredit

Whilst I’m a fan of banking giants Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) for their dividends, not all investors feel the same way.

Whether it be fears over a housing market crash or concerns that dividends may be cut in the future, I can fully understand why some investors may wish to stay clear of them.

So for investors in search of strong dividends outside the banking sector, I would suggest they take a look at the following three shares.

Ardent Leisure Group (ASX: AAD)

Although it is unfranked, Ardent Leisure’s 5.7% dividend remains attractive in my opinion due to the explosive growth prospects of its Main Event brand in the United States. Currently Main Event accounts for 49% of total EBITDA, but this is likely to grow to an even larger contribution in the coming years due to its pipeline of new high‐yielding Main Event centres planned throughout the United States. This should allow the company to grow its dividend at a strong rate. However, investors may want to hold off an investment until the investigation into the tragic accident that occurred at its Dreamworld theme park is fully resolved.

G8 Education Ltd (ASX: GEM)

In August the G8 Education share price was hammered following a disappointing half year result. But since then its share price has been gradually retracing the decline and it is now just 8% lower than its August high. Despite this its shares are still providing investors with a lucrative fully franked 7.3% full year dividend. So with management expecting a much stronger second half, now might be a great time to snap up this generous dividend before it’s too late.

WAM Capital Limited (ASX: WAM)

As well as providing investors with a strong yield, WAM Capital has a history of growing its dividend year after year. Over the last five years the fund manager has grown its dividend by an average of 8% per year. Thanks to its strong performance this year resulting in a record full year net profit after tax of $98 million, I expect that its dividend will continue to grow over the next 12 months. With its shares already providing a trailing fully franked 6.3% dividend, FY 2017 looks likely to be another high-yielding pay out year.

If you're looking for dividend shares that will help you retire rich, then look no further than these fantastic shares. These could be just what you need in this low interest environment.

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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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