Looking to earn a great income in 2016?
With interest rates sitting at 2%, and possibly going lower, fully-franked, dividend-paying shares are your best bet.
That sounds easy, but it's not as simple as investing in the Big Four banks or major miners anymore. The banks are facing years of slower growth while resources are in the doldrums as well.
Instead, here are three great ways to earn a reliable dividend income in 2016 and beyond.
3 Fully Franked Dividend Shares to Boost Your Returns
Insurance Australia Group Limited (ASX: IAG) is a general insurance business, operating throughout Australia, New Zealand and Asia. Its long-term growth prospects and fat, fully franked dividend yield even attracted the attention of Warren Buffett, whose company now owns 3.7% of IAG.
At its current price, investors could receive a 5.6% fully franked dividend yield which grosses to 8%. You certainly won't find that in any term deposit…
Retail Food Group Limited (ASX: RFG) is the master franchisor of businesses including Gloria Jean's, Donut King and Crust Pizza, to name a few. The franchisees fund much of the growth and pay RFG a percentage of their revenues – not their profits – providing a steady stream of income.
Earnings have grown strongly over the last nine years, and so have the dividends. RFG currently offers a 5.5% fully franked dividend yield.
As Australia's biggest telco, Telstra Corporation Ltd (ASX: TLS) needs no introduction. However, the company is also expanding its Asian presence, boosting its investment spend on new big-growth technologies while its services and infrastructure are also key to the data boom (think Netflix and other machine-to-machine communications).
To top it off, Telstra offers one of Australia's best and most reliable dividends. At $5.59, it trades on a 5.5% fully franked yield.
