3 BIG dividend shares to beat Australia and New Zealand Banking Group

Australia and New Zealand Banking Group (ASX:ANZ) pays a great dividend, but it's not the biggest yield out there. Here are three non-bank shares with even bigger yields…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I'm a big fan of Australia and New Zealand Banking Group (ASX: ANZ) and its fully franked 5.7% dividend. But with fears of rising bad debts and a housing market crash, I can completely understand why some investors want to avoid the banking sector.

The good news is that there are dividend shares out there that provide bigger yields than even ANZ. Here are three alternative to the banks that income investors can buy today:

Thorn Group Ltd (ASX: TGA)

Although Thorn Group carries regulatory risks from past activities, I believe at 9x full year earnings this has been fully priced into its shares. Last week's half-year results were mixed, but showed signs of improvement. Whilst net profit fell 1.4% over the prior corresponding period, net profit from continuing operations increased 6.3%. This could be a sign that the turnaround is working. The company declared a fully franked 5.5 cent interim dividend, which equates to a 6% yield when annualised.

Telstra Corporation Ltd (ASX: TLS)

Whilst the telco giant's earnings growth has slowed in recent times, I still believe its mobile phone segment, Asia-based operations, and venture into the healthcare sector could provide it with enough growth to at least maintain its generous dividend over the next few years. At present Telstra's shares provide a trailing fully franked 6.3% dividend, which I find especially attractive in the current low interest environment.

Village Roadshow Ltd (ASX: VRL)

The film distributor and cinema and theme park operator has certainly had a difficult year. As a result of a mixed performance its share price is down 38% year to date. At this price its shares provide investors with a trailing fully franked 6.1% dividend. Since the Dreamworld incident the company has been experiencing lower visitor numbers at its own theme parks. Whilst I expect this will improve shortly, it may be prudent to wait until its half-year results to see if it has impacted the company before making an investment.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »