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3 high-yield dividend shares on my shopping list

With an average dividend yield of 3.8%, the Australian share market is one of the world’s most generous markets.

Among the many dividend shares to choose from on the market, three top shares with above-average yields stand out. Here’s why I would consider snapping them up today:

Dicker Data Ltd (ASX: DDR)

Despite its shares going on a stellar run over the last 12 months, this wholesale computer hardware distributor will still provide investors with a fully franked 6% dividend in FY 2017. Thanks to the rise of cloud computing and the demand for related hardware, I expect Dicker Data to continue growing earnings strongly for the foreseeable future, allowing it to increase its dividend further.

Event Hospitality and Entertainment Ltd (ASX: EVT)

With the inbound tourism boom in full swing and showing no signs of slowing, I believe Event’s numerous entertainment and accommodation brands could benefit greatly. While its performance in FY 2017 was a touch underwhelming, I expect a much-improved performance in FY 2018. This could put it in a position to increase its dividend once again after holding it steady this year. At present its shares provide a trailing fully franked 4% dividend.

Super Retail Group Ltd (ASX: SUL)

Although Amazon is rumoured to be launching as soon as next week, I wouldn’t let that put you off Super Retail. While it is by no means Amazon-proof, management has worked hard to prepare for an Amazon launch and I believe it has a great chance of competing successfully. Super Retail’s shares trade at just 11x trailing earnings and provide a trailing fully franked 6% dividend at the current share price.

Finally, here are five more dividend shares I expect to have a strong 2018.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Dicker Data Limited, Event Hospitality & Entertainment, and Super Retail Group Limited. 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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