With term deposits offering paltry returns at the moment I believe the share market is the best place for retirees to invest their hard earned money.
Whilst there are a good number of quality options for income investors, three high-yielding dividend shares in particular jump out at me today. They are as follows:
G8 Education Ltd (ASX: GEM)
Although this leading childcare operator had a reasonably mixed start to FY 2016, December’s update revealed that trading picked up in the second-half as management predicted. Full-year earnings before interest and tax is expected to be between $158 million and $162 million, roughly flat on last year’s result. I expect the strong finish to the year will lead to a return to growth in FY 2017, which could make it an opportune time to invest. Especially as G8 Education’s shares are expected to provide a fully franked 6.6% dividend next year according to CommSec.
IVE Group Ltd (ASX: IGL)
IVE Group is one of Australia’s leading printing and marketing companies. I believe the company is set to have a strong FY 2017 thanks to two recent acquisitions which are expected to be accretive to earnings. Furthermore, the company recently announced a major new Wesfarmers Ltd (ASX: WES) contract win. At the current share price IVE Group’s shares are forecast to provide investors with a fully franked 7.4% dividend over the next 12 months.
Telstra Corporation Ltd (ASX: TLS)
Whilst its days as a fast-growing telco company may be behind it, I still believe Telstra is positioned to deliver at least low-single digit earnings growth for the next few years. As well as its strong mobile business, I feel its expansion into the healthcare and Asia markets should help Telstra offset the decline in its core business. With its shares expected to provide a fully franked 6.2% dividend over the next 12 months, Telstra is an attractive option in my opinion.
There is a fourth dividend share as well which I think all income investors should have in their portfolio. Not only does it provide a big fully franked yield, but it also has a long history of dividend increases.
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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.