Telstra Corporation Ltd's (ASX: TLS) forecast 4.6% fully franked dividend looks great against a backdrop of falling interest rates, doesn't it?
Unfortunately with its share price up 111% in the past five years and its dividend yield down from over 13% grossed-up, it's fair to say the opportunity to buy Telstra shares has past.
Fortunately, it's not the only dividend-payer in town.
Indeed, there's a plethora of stocks in the S&P/ASX200 (ASX: XJO) (Index: ^AXJO) which currently trade on a bigger forecast dividend yield than Telstra. Here are five to add to your watchlist…
- SKYCITY Entertainment Limited-Ord (ASX: SKC) operates monopoly casinos in New Zealand and Australia. In the year ahead, it's expected to pay a dividend of 20 cents per share, equivalent to a yield of 5.1% unfranked.
- Automotive Holdings Group Ltd (ASX: AHE) is a leading diversified automotive retailer and logistics group. The $1.3 billion company is expected to pay a dividend of 5.4% fully franked in the coming year.
- JB Hi-Fi Limited (ASX: JBH) shares may be trading at 14x last year's profits – despite a backdrop of low consumer confidence – but they are still sporting a forecast dividend yield of 4.9% fully franked.
- Bank of Queensland Limited (ASX: BOQ) is a leading regional bank currently growing throughout the country via its 'owner-managed branch' rollout. Analysts are forecasting a fully franked dividend yield of 5.4%.
- Rio Tinto Limited (ASX: RIO) is Australia's leading iron ore producer – a commodity which has seen its price plummet on concerns about oversupply and waning Chinese demand. Despite the outlook, analysts are tipping a fully franked dividend of 4.9% to be paid in the year ahead.
Should you buy these five stocks?
I wouldn't touch any of the last three last stocks – JB Hi-Fi, Bank of Queensland and Rio Tinto – if I were looking to add an income stock to my portfolio. In fact, at today's prices and given the current economic outlook, they're probably best avoided. However, in my opinion, both SkyCity Entertainment and Automotive Holdings Group deserve a spot on your watchlist.
