Australia and New Zealand Banking Group
With a fat, fully franked yield of 5.1%, Australia and New Zealand Banking Group (ASX: ANZ) remains a steadfast income stock for Aussie investors. In fact, its yield is 21% greater than the ASX's 4.2% and, at a time when interest rates are set to fall further, differences like that can make a major impact on investors' incomes. As a result, ANZ could see its shares move higher as high-yield stocks become more in demand.
Furthermore, ANZ offers investors the potential for real-terms increases in dividends moving forward. That's because it has an excellent track record of dividend per share rises, with them having increased at an annualised rate of 11.8% during the last five years. As such, ANZ appears to be an excellent income play that could be worth buying at the present time.
National Australia Bank Ltd.
The dividend on offer at National Australia Bank Ltd. (ASX: NAB) is truly astounding, with it currently having a fully franked yield of 5.4%. That's 2.4 times the current interest rate and could be more if, as expected, the RBA continues to loosen monetary policy.
And, with higher inflation a distinct possibility as interest rates fall, NAB also offers the potential for a real-terms increase in dividends over the medium term. That's because it has a payout ratio of 1.3, which shows that it has a considerable amount of headroom when making shareholder payouts. This, plus the prospect of improved performance from the effects of a lower interest rate, means that NAB should increase dividends at a brisk pace and prove to be a top notch income stock.
Telstra Corporation Ltd
Even though Telstra Corporation Ltd (ASX: TLS) has increased dividends per share at an annualised rate of just 1% over the last five years, it remains an appealing income stock. For starters, it has a fully franked yield of 4.7% and could deliver rapid dividend growth.
That's because Telstra has shifted its focus to faster growing markets across Asia where it believes it will be able to generate superior top and bottom line growth. Of course, it remains focused on its domestic market, too, but this additional growth potential from abroad could allow it to increase dividends at a much faster rate than it has done in the past. As such, it could prove to be an enticing income play over the medium term.
