Are you looking for investments that can give you good income?
Perhaps you aren't satisfied with the 2% p.a. currently offered by some term deposits or the 2.82% yield currently offered by the Australian government bonds.
Perhaps the 4% yield on your unit in Melbourne isn't quite good enough and perhaps you need something else that can beat the 6% dividend yield you are getting on your Commonwealth Bank of Australia (ASX: CBA) shares.
Well, these three shares have dividend yields that are too good to ignore.
Telstra Corporation Ltd (ASX: TLS)
With a current dividend yield of 8% according to Morningstar, Telstra shares are worth a closer look. Changes in technology such as 5G and the Internet of Things could create opportunities for Telstra but of course, there are negatives.
Telstra share have lost over 50% of their value over the last 3 years due to many factors including lost revenue relating to the NBN, as well as the anticipated increased mobile competition from TPG Telecom Ltd (ASX: TPM). There is always a risk that Telstra could stay in this slump for a while, but I think it's a risk worth taking to include this blue chip stock as part of a diversified income portfolio.
Vicinity Centres Re Ltd (ASX: VCX)
Vicinity is still trading below its book value and offers a dividend yield of 7%. Top broker Goldman Sachs has a buy rating on Vicinity and their view is that at current prices, it offers greater value when compared to Scentre Group (ASX: SCG) and Charter Hall Retail REIT( ASX: CQR).
Spark New Zealand Ltd (ASX: SPK)
The New Zealand-based telco keeps growing its mobile market share and has a relatively strong balance sheet that can be used for future capital investment. It's also the first provider to test 5G in New Zealand and it's looking attractive with its 7% dividend yield.
In addition to the shares above, I like companies that have high dividend yields that are expected to continue increasing their dividend payments at a sustainable payout ratio. This has a compounding effect and can really grow your wealth over the long term. This report prepared by our team of experts identifies the ASX companies that are set to raise dividends.
