The Australian share market is full of options and opportunities for investors. Some investors are looking for growth whilst others are happy to receive large fully franked dividends.
There's nothing wrong with either approach and indeed a portfolio of both strategies combined could produce good results.
Here are three shares that could work well for the investors looking for only large dividend payments:
Medibank Private Ltd (ASX: MPL)
Medibank is the largest private health insurer in Australia. The health insurance industry is often criticised for growing premiums and making too much profit, which suggests the companies could be investment opportunities.
The cheaper AHM brand is attracting a lot of new policyholders to make up for the difficulties that the main brand is having.
Medibank is predicting little growth, but growth nonetheless. It's currently trading at 18x FY17's estimated earnings with a grossed-up dividend yield of 5.8%.
Westpac Banking Corp (ASX: WBC)
Westpac has been a consistent dividend payer for shareholders over the last decade.
It doesn't look like the dividend party is going to end in the short-term with the economy and housing market still grinding forwards.
Westpac has an effective strategy of using its many brands to appeal to customers. It owns Rams, Bank of Melbourne and Bank of St George to go along with its other brands.
Westpac is currently trading at 13x FY18's estimated earnings with a grossed-up dividend yield of 8.37%.
Sydney Airport Holdings Ltd (ASX: SYD)
Sydney Airport is experiencing a boom in passengers, particularly international passengers.
This means more car park fees, more retail outlet spending and more flight revenue. This trend is predicted to keep growing for a number of years.
Sydney Airport is currently trading at 33x FY18's estimated earnings with an unfranked dividend yield of 4.81%.
Foolish takeaway
All three of the above businesses could be decent options for investors purely looking for income. However, I wouldn't be a buyer at the current prices as I think there are better options.
