Beat the bank deposit blues with these 4 top dividend yield stocks

Suncorp Group Ltd (ASX:SUN), Automotive Group Holdings Ltd (ASX:AHE) Insurance Australia Group Ltd (ASX:IAG) and JB Hi-Fi Limited (ASX:JBH) provide yields far above what's on offer from most term deposits.

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As I highlighted here, this week investors have responded to the decision by the Reserve Bank of Australia to reduce interest rates even lower by pushing share prices to new heights.

One of the consequences for investors, particularly those such as retirees who are heavily reliant on producing a steady income from their savings, is the need to move up the risk curve by reducing their cash holdings which are earning a pittance in a deposit account. One of the most common alternatives for investors who decide to take on more risk and seek out higher returns to help cover their living costs is to own dividend-paying shares.

Here are four high dividend yield stocks which could help your portfolio beat the bank deposit blues…

  1. Suncorp Group Ltd (ASX: SUN) is forecast to pay a dividend of 93.5 cents per share (cps) in financial year (FY) 2015 according to Thomson Consensus Estimates. With the share price at $14.79, the stock is offering shareholders a fully franked dividend yield of 6.3%.
  2. Automotive Group Holdings Ltd (ASX: AHE) is forecast to pay a dividend of 22.7 cps in FY 2015. With the share price at $6.46, the stock is offering shareholders a fully franked dividend yield of 6%.
  3. Insurance Australia Group Ltd (ASX: IAG) is forecast to pay a dividend of 38.1 cps in FY 2015. With the share price at $6.46, the stock is offering shareholders a fully franked dividend yield of 5.9%.
  4. JB Hi-Fi Limited (ASX: JBH) is forecast to pay a dividend of 86.8 cps in FY 2015. With the share price at $17.30, the stock is offering shareholders a fully franked dividend yield of 5%.
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned.  

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