The recent spike in global bond yields is playing havoc with some of the ASX's most loved, high-yielding shares such as Sydney Airport Holdings Ltd (ASX: SYD) and Transurban Group (ASX: TCL).
As the comparative chart below highlights, both of those shares have lost more than 20% of their value since the beginning of August, with the declines accelerating over the past few weeks.
While some investors might think about abandoning their dividend-paying shares in light of recent events, I think the important point to note here is that Sydney Airport and Transurban were bid up to very expensive and unsustainable valuations by those investors looking for bond-like returns.
Luckily, there are a number of shares with fast-growing dividends that are trading at fairly reasonable valuations that income investors could consider, including:
IPH Ltd (ASX: IPH)
The intellectual property services firm isn't trading far from its 52-week lows, despite delivering a solid full year result and recently bedding down an earnings accretive acquisition that will bolster its presence in the fast-growing Asian region. While the market appears to be taking a 'wait and see' approach, I think the company remains comfortably placed to meet analysts' forecasts for the dividend yield to increase to 4.7% and 5.4% over the next two years.
Amaysim Australia Ltd (ASX: AYS)
Amaysim has been one of the few telco shares to post a share price gain over the past three months and has been largely unaffected by the sell-off that has hammered some of the big name players in the sector. The company delivered an impressive full year result and also recently announced its intention to become a nimble player in the NBN market. The shares currently offer a dividend yield of 3.8%, although consensus forecasts suggest this yield will increase to 5.1% over the next 12 months.
APN Outdoor Group Ltd (ASX: APO)
APN Outdoor has been one of the most volatile shares on the ASX over the past three months following a profit downgrade and then a subsequent profit upgrade. Although this may not an most ideal situation for risk averse investors, I think investors who can handle higher-than-average levels of volatility in the short term will be duly rewarded. The company is one of the market leaders when it comes to the fast growing out-of-home advertising market and its digital roll-out strategy is far from peaking. According to CommSec, APN Outdoor's dividend yield is expected to grow to 3.7% and 5.1% over the next two years.
