One positive for investors from this weekend's shock Liberal-National Coalition Federal election win is that there will now be no changes made to franking credit refund rules.
In light of this, I suspect that many income investors will be on the lookout for fully franked options once again. Three that I would buy are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
This banking giant currently provides investors with a trailing fully franked $1.60 per share dividend, which equates to a generous yield of approximately 6.2%. I think this makes it a great option for income investors, especially with its shares trading on lower than average multiples. Furthermore, due to the company's exposure to SME lending, cost cutting opportunities, and strong capital position, I believe ANZ is well-placed to at least maintain this dividend over the medium term.
Dicker Data Ltd (ASX: DDR)
Dicker Data is a distributor of information technology products across Australia and New Zealand. Strong demand for its offering and new vendor agreements has led to the company growing both its earnings and dividend at a very strong rate over the last few years. Pleasingly, this has continued in the first quarter of FY 2019, putting Dicker Data in a position to deliver another record profit result this year. Based on management's guidance, at present its shares provide a forward fully franked 4.3% dividend yield. This dividend is paid in quarterly instalments.
Telstra Corporation Ltd (ASX: TLS)
Although this telco giant's shares have just hit a 52-week high, I don't believe it is too late to invest due to the recent decision by the ACCC to block the TPG-Vodafone Australia merger. I see this as a big positive for Telstra and believe it will allow it to entrench its first mover advantage in 5G. In addition to this, I believe cost cutting opportunities and its improved performance means its dividend is now sustainable at 16 cents per share. This equates to a fully franked 4.5% dividend yield based on its last close price.
