Although the Australia and New Zealand Banking Group (ASX: ANZ) dividend is one of the biggest yields available to investors on the market at present, I believe the proposed $6.2 billion bank levy could put it in danger of a cut in the future.
Because of this I think income investors should look beyond ANZ and the rest of the big four banks for dividends.
Instead, I would suggest investors consider these dividend shares:
Dicker Data Ltd (ASX: DDR)
This founder-led wholesale computer hardware company's shares currently provide one of the most generous yields on the market. According to its most recent earnings release, management plans to pay a fully franked 16.4 cents per share dividend this year. At the current share price this equates to a whopping yield of 7.5%. Another bonus for income investors is that Dicker Data pays its dividends in quarterly instalments.
Sigma Healthcare Ltd (ASX: SIG)
Sigma Healthcare is the name behind leading pharmacy retail brands such as Amcal and Chemist King. Despite the weak retail environment, I was very pleased to see that Sigma-branded pharmacies recently reported an 8.2% increase in its like-for-like sales. This helped the company to deliver a 13% jump in full-year net profit and increase its dividend. At present Sigma's shares provide a trailing fully franked 4.5% dividend. I expect more of the same in FY 2017, especially with its online China-based Amcal store performing above expectations.
WAM Capital Limited (ASX: WAM)
I think WAM Capital is one of the best dividend shares on the Australian share market. The listed investment company has grown its dividend for eight years in a row and looks likely to do the same this year thanks to the strong performance of its portfolios. At the current share price WAM Capital provides investors with a trailing fully franked 6.4% dividend. Not only does this smash the market-average, but it is also a superior yield to that on offer with ANZ.
