Australian fully franked dividends are the best source of income in the world in my opinion.
Lots of Australian companies pay generous dividends out of their earnings and then that's topped up by juicy franking credits. Real estate investment trusts (REITs) can also be a good source of growing income.
Here are four of my favourite dividend shares on the ASX:
WAM Capital Limited (ASX: WAM)
WAM Capital is the flagship listed investment company run by Geoff Wilson and his investment team.
It has consistently beaten the long-term returns of the share market which allows it to pay a large and growing dividend. It currently has a trailing grossed-up dividend yield of 8.6%.
Rural Funds Group (ASX: RFF)
Rural Funds Group is the only REIT that purely focuses on agricultural property.
It has rental contracts with built-in rent increases which should allow management to slowly and steadily increase the distribution.
Its diverse approach with farm types and locations should see it remain a long-term winner. Rural Funds Group is trading with a trailing distribution yield of 4.84%.
Retail Food Group Limited (ASX: RFG)
This investment may not be for everyone, including myself. However, that doesn't mean it can't go on to be a market beater from this share price.
Retail Food Group is the master franchisor of a number of food outlets including Donut King, Michel's Patisserie, Cafe2U and Brumby's. Several of its chains are ailing, they are struggling to grow sales faster than inflation which is why the share price has been beaten up recently.
However, the business is growing its total number of outlets with big expansion plans overseas, including Sweden. If it keeps growing earnings per share and the dividend then it could turn into a good investment from this low share price. It currently has a grossed-up dividend yield of 9.37%.
National Storage REIT (ASX: NSR)
National Storage offers investors the opportunity of long-term capital growth with a big distribution yield straight away.
Storage units are becoming increasingly popular due to the high property prices. That extra bedroom or garage costs a lot if you're just using it to store items.
National Storage adds to its growing network every year and currently has a trailing distribution yield of 5.99%.
Foolish takeaway
All of these shares offer a nice dividend income straight away. I think WAM Capital has the best chance of producing market-beating returns from here. I like Rural Funds but it's trading a bit too expensive for me at the moment.
