3 dividends that are bigger than Medibank Private Ltd’s 4%

Health insurer Medibank Private Ltd (ASX: MPL) is an attractive prospect to many investors, who are familiar with its brand name and the fact that it is the largest health insurer in Australia.

However, the company’s 4% fully franked distribution is only middle-of-the-road, as dividends go. Here are 3 companies with much bigger dividends that you could buy instead:

Telstra Corporation Ltd (ASX: TLS) – 7.5% fully franked

This telecom and mobile service provider is the biggest in Australia, although fears about its profitability have beaten up its shares – the Telstra share price hasn’t been this low since 2012. The result is that shareholders are receiving a very attractive 7.5% dividend at today’s lower prices. While there are many moving parts in Telstra, and the prospect of increasing competition from smaller telcos – even allowing for a possible dividend cut – the company will still pay market-leading dividends.

Platinum Asset Management Limited (ASX: PTM) – 6.3% fully franked

This fund manager has seen its share price beaten up over the past couple of years as funds have been withdrawn from its investment vehicles despite continued respectable performance. This has led to a lower share price and earnings, although management is confident that fund inflows will improve in the future as investors become aware of Platinum’s performance.

Even factoring in a further possible dividend cut if fund outflows continue, Platinum’s 6.3% dividend beats Medibank hands-down.

Suncorp Group Ltd (ASX: SUN) – 5.3% fully franked

This insurer/banker has a rock-solid balance sheet with $13 billion in assets – almost 75% of its $17.5 billion market capitalisation. Although Suncorp does have a banking business which is vulnerable to property downturn, this segment contributed approximately 1/3rd of segment earnings at the latest half-year. Suncorp’s monstrous collection of assets (think bonds) paid $558 million in interest in the half, leaving the company an obvious beneficiary from possible higher interest rates. This company’s 5.3% dividend comfortably beats Medibank’s.

Discover 3 more big dividend payers with our Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Sean O'Neill 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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