As one of the most generous share markets in the world with an average dividend yield of 4%, there certainly is a lot of choice for income investors.
To help narrow things down, I have picked out two high-yield dividend shares that are on my shopping list at the moment.
They are as follows:
Dicker Data Ltd (ASX: DDR)
One of my favourite dividend shares on the market at the moment is this leading wholesale distributor of computer hardware and software. The founder-led company may not have the most exciting business, but it certainly has been booming over the last few years. Earlier this week the company provided a trading update which revealed that it has beaten its full-year guidance ever so slightly in FY 2017 with a 10.2% lift in revenue and a 9.9% increase in pre-tax profits.
Management also advised that the board has declared a final dividend of 4.8 cents per share, bringing its full-year dividend to 16.8 cents per share. Based on its last close price, this equates to an annual fully franked 5.7% yield. I expect more of the same from Dicker Data in FY 2018.
Telstra Corporation Ltd (ASX: TLS)
Yesterday Telstra reported a solid half-year result that gave me confidence to believe that it is capable of delivering on its short-term targets. As a result, I believe that its proposed 22 cents per share dividend for FY 2018 is sustainable for at least the next couple of years. After which, a lot will depend on the success of its investments and cost controls.
Furthermore, the more I read about it, the more optimistic I am on the potential for the 5G network. I believe this could be a cash cow for the telco giant and a way to potentially bypass the NBN and its weak margins. At the current share price Telstra provides a fully franked 6.4% forward dividend. In light of this, I would choose Telstra ahead of industry peers Vocus Group Ltd (ASX: VOC) and TPG Telecom Ltd (ASX: TPM).
