Dividend shares continue to be very popular amongst investors and this is unsurprising when you consider term deposits and most inner city investment properties are offering net income returns of less than 2.5%.
With interest rates expected to remain at historically low levels for some time to come, I think dividend shares are still a great option for risk-tolerant investors who want to generate market-leading returns over the medium term.
With that in mind, here are nine high-yielding shares that income-seeking investors might want to take a closer look at in 2017:
| Company | Market Cap | P/E Ratio | Dividend Yield | Grossed Up Yield | 5 Year Total Return |
|
Macquarie Group Ltd (ASX: MQG)
|
$30.2 billion | 14.6 | 4.7% | 5.7% | 31.7% |
|
Mantra Group Ltd (ASX: MTR)
|
$800 million | 15.7 | 4.4% | 6.3% | N/A |
|
RCG Corporation Ltd (ASX: RCG)
|
$569 million | 14.1 | 5.6% | 8.0% | 30.5% |
|
Dicker Data Ltd (ASX: DDR)
|
$336 million | 13.1 | 7.8% | 11.1% | 47.4% |
|
Villa World Ltd (ASX: VLW)
|
$273 million | 7.9 | 7.5% | 10.7% | 29.0% |
|
Retail Food Group Limited (ASX: RFG)
|
$963 million | 13.2 | 5.0% | 7.1% | 21.3% |
|
Folkestone Education Trust (ASX: FET)
|
$687 million | 20.0 | 4.9% | 4.9% | 31.8% |
|
WAM Capital Limited (ASX: WAM)
|
$1.5 billion | 11.9 | 6.2% | 8.9% | 17.0% |
| Vanguard Australian Shares High Yield ETF (ASX: VHY) | $736 million | 20.2 | 5.6% | 7.4% | 10.7% |
Importantly, all the shares listed above have either flagged higher dividends over the coming year, or are in a strong position to increase their dividends over the next 12-18 months.
Along with the individual shares above, I have also highlighted a high-yielding exchange traded fund (ETF) operated by Vanguard. This is a simple and convenient option for those investors who may be more risk-averse, or do not have the resources to research individual shares.
However, one point to note about this ETF, and others like it, is that it is dominated by a relatively small number of shares with a fairly large weighting towards the big four banks, Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES). This means investors can expect to receive a fairly reliable dividend source, albeit at a pretty low growth rate.
