3 fully franked dividend shares I’m tipping for big things in 2017

Given that interest rates are at record lows and tipped to go lower by some market observers, I believe investors are better off skipping supposed high interest savings accounts and looking to the share market.

There are a huge number of high-quality dividend shares for investors to choose from. But three in particular with generous fully franked yields stand out in my opinion. They are as follows:

Challenger Ltd (ASX: CGF)

In the last decade Australia’s leading annuity provider has grown its dividend by an average of 11.2% per annum. I feel confident there is plenty more growth ahead for its dividend looking at its strong half-year profit result. Today the company reported an 8% jump in normalised net profit after tax to $197 million, with assets under management up an impressive 12% to $64.7 billion. Challenger also declared a fully franked interim dividend of 17 cents per share, up 6% on the prior corresponding period. This equates to a trailing fully franked 3% dividend at today’s share price. Whilst this may not be the biggest on the market, I think patient buy and hold investors will be rewarded handsomely as the dividend should grow over time.

Dicker Data Ltd (ASX: DDR)

Dicker Data is a founder-led wholesale distributor of computer hardware, software, and related products. Despite the fact its shares have rallied almost 60% in the last 12 months, they still provide investors with a trailing fully franked 6.6% dividend. Judging by its strong performance in FY 2017 and its expansion into the growing cloud services market, I expect its dividend could rise further over the next 12 months. Another bonus for income investors with Dicker Data is that it pays its dividend quarterly, which will keep the income flowing in on a regular basis.

Event Hospitality and Entertainment Ltd (ASX: EVT)

As the company behind leading hotel and entertainment brands such as Rydges hotels, Thredbo resorts and Event cinemas, I believe Event Hospitality and Entertainment could be a big winner from the Australian tourism boom. As inbound tourism numbers increase I expect the company’s portfolio of hotel brands will see demand for rooms increase. This should allow the company to command higher room and occupancy rates to boost overall profitability. After recent price falls, its shares look good value now and are expected to provide a fully franked 3.9% dividend in FY 2017.

There is a fourth dividend share that I feel investors should also consider. It has grown its dividend each year for 10 years in a row and I expect the same this year.

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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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