Here are 3 must buy dividend shares with market-beating yields

With term deposits and high interest savings accounts providing extremely slender yields, I believe investors in search of income would be better off looking to the share market.

Three dividend shares which I think income investors should take a close look at are listed below. Each pays a market-beating fully franked dividend, with plenty of room for growth in the future in my opinion.

Here they are:

Event Hospitality and Entertainment Ltd (ASX: EVT)

The shares of the company behind popular entertainment and accommodation brands such as Event Cinema, Rydges, and Thredbo Alpine Resort provide investors with a trailing fully franked 4.2% dividend. I feel Event could be in a position to grow its dividend substantially over the next decade thanks to the strong tailwinds the company is experiencing from Australia’s tourism boom. This could make it a great buy and hold investment in my opinion.

Flight Centre Travel Group Ltd (ASX: FLT)

At the current share price this leading travel agent provides investors with a trailing fully franked 4.6% dividend. Flight Centre may be going through a spot of turbulence at the moment, but I believe investments the travel agent has made in China and India has positioned it for solid long-term growth. With its shares down 33% in the last 12 months, now could be an opportune time to snap up some shares.

Suncorp Group Ltd (ASX: SUN)

The shares of this insurance giant currently provide a trailing fully franked 5.3% dividend. I believe this makes it one of the best on the ASX, especially with its new operating model gathering pace. In its recent half-year results, Suncorp reported an underlying insurance trading ratio of 11%, up from 10.1% during the prior corresponding period. The ITR is an important measure of profitability for an insurer and pleasingly is on a path to 12% according to management. Should it deliver on this then I believe Suncorp will be in a position to continue to grow its dividend further.

There is a fourth dividend share as well. With a market-beating yield and strong growth prospects, I believe this company is a must buy for investors in search of income.

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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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