3 dividend shares with yields over 5%

Income is a very important part of returns for a lot of people. Dividends are generally less volatile than share price movements and can represent some, if not all, of a person’s income in retirement.

If I were to invest in dividend shares I’d want to go for businesses that have reliable dividend histories and have every chance of growing at a good rate over the coming years.

But, the potential dividend ideas also have to pay a good yield, or else I may as well keep cash in the bank.

Here are three ideas:

Future Generation Investment Company Ltd (ASX: FGX)

This provides shareholders exposure to some of the best Australian fund managers, indeed it currently gives investors exposure to almost 20 different investment managers.

A key difference is that this vehicle doesn’t charge investors management fees or performance fees, instead it donates 1% of NTA to charities, which is a very admirable cause.

So far it has outperformed the market and it aims to provide investors with a growing stream of fully franked dividends, which it has done so since it started paying dividends.

It currently has a grossed-up dividend yield of 5.03%.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that focuses on the large end of the Australian market.

Over the past year its portfolio has returned 15.4% before fees and taxes, outperforming the S&P/ASX 200 Accumulation Index by 5.8%, which is quite impressive.

It has only recently started paying a dividend but currently has a grossed-up dividend yield for FY18 of 6.2%.

Tassal Group Limited (ASX: TGR)

Tassal is Australia’s largest fish company, it’s a large salmon farmer and also owns a fish wholesale business.

Fish is increasingly being in demand due to changing food habits for both health and personal choice reasons. There is strong demand for Australian-produced food in Asia as well.

Tassal has managed to steadily increase its operating earnings over the past few years and has increased its dividend each year since 2011. It currently has a grossed-up dividend yield of 5.01%.

Foolish takeaway

All three businesses have commendable dividends and I imagine there’s a good chance that the dividends will continue to be increased as time goes on. If I had to choose one it would be the Future Generation Company because of its charitable giving and also its objective of growing dividends.

Another business that could be a very good dividend buy is this top income stock which just increased its dividend by more than 25%.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!