This week the Reserve Bank of Australia (RBA) announced that it would keep the official cash rate steady at 1.75%
In a sense that's good news for retirees who have chosen to keep their savings in a bank account – they wouldn't want the interest rate to be any lower!
For many other retirees who have chosen to invest their savings and superannuation into equities in the hope of achieving better returns on their money, the interest rate decision is of little consequence.
While its undoubtedly a difficult time for self-managed super funds and investors generally, there is some solace in the fact that many ASX-listed shares continue to offer attractive fully franked dividends well above the cash rate.
Many consider Telstra Corporation Ltd (ASX: TLS) to effectively be the benchmark stock when it comes to dividend yield – its currently trading on a trailing yield of 5.5% – which is fair enough considering the apparent maintainability of its dividend.
There are however a number of lesser followed but still attractive dividend opportunities. Here are three…
Village Roadshow Ltd (ASX: VRL) is forecast to pay a dividend in financial year (FY) 2017 of 28.5 cents per share (cps) implying a fully franked dividend yield of 5.5%.
Bank of Queensland Limited (ASX: BOQ) VRL) is forecast to pay a dividend in FY 2017 of 76.5 cps, implying a fully franked dividend yield of 7%.
Medibank Private Ltd (ASX: MPL) is still in the process of ramping up its dividend after many years as a government-owned entity. While the yield based on the pay out in FY 2017 might not appear that exciting, if investors take a longer term view and consider the forecast for FY 2018 of 14 cps then Medibank's expected yield is 4.4%.
