With interest rates at just 2.5%, term deposit holders are likely receiving between just 3% and 4% per year on their money.
Some of the big banks are offering even less than that!
Indeed if you're planning to invest for five years or more, there appears little reason to hold excess cash or term deposits. Especially when we consider some of Australia's biggest and best dividend stocks are offering yields of 5% or more. Many with tax effective franking credits!
Here are five of the best S&P/ASX 200 (ASX: XJO) (INDEX: ^AXJO) dividend stocks to consider…
1. Scentre Group Ltd (ASX: SCG) is the owner of Westfield shopping centres in Australia and New Zealand. Since separating from Westfield Corp earlier this year, Scentre Group has seen its shares jump 17%. However it continues to offer a strong 5.5% dividend yield leading into 2015.
2. Coca-Cola Amatil Ltd (ASX: CCL) is a name familiar to many Australians. The Coca-Cola bottler and distributor has had a tough couple of years. However under CEO Alison Watkins things appear to be looking up and while investors wait for its share price to catch on, a 4.4% partially franked dividend is on offer.
3. QBE Insurance Group Ltd (ASX: QBE) is another company which has endured a few rough years on the market. Indeed the company has been plagued by troubled assets in both North and South America. Its share price is down from $25 to just $11 in the past five years. However analysts remain confident on the company's future, with expectations of a 3.6% fully franked dividend in the next year.
4. Sky Network Television Ltd (ASX: SKT) is New Zealand's premier pay-tv operator, with a residential penetration of over 48%. According to Morningstar's analysts' consensus forecasts, in 2015 it is expected to declare a 5.9% unfranked dividend.
5. ASX Ltd (ASX: ASX) is Australia's premier securities exchange. Although its share price can be volatile at times, investors can use this to their advantage. At today's share price it yields 4.9% with full franking.
