I think the fully franked 6% dividend that Westpac Banking Corp (ASX: WBC) pays makes it one of the better dividend options on the Australian Stock Exchange for investors.
But with a lot of investors already having significant exposure to the banks, in order to maintain a diverse portfolio it may not be suitable for everyone.
For those investors that already have exposure to the banks I would suggest these high-yielding shares instead:
Dicker Data Ltd (ASX: DDR)
The shares of this wholesale distributor of computer hardware, software, and related products have had a stunning year and rocketed a massive 43%. Despite this it still provides investors with a market-beating dividend. The last quarterly dividend the company paid out was 3.85 cents, which annualised would equate to a fully franked 6.5%. Pleasingly a market update released yesterday shows that Dicker Data is on course for full year net profit after tax of $25.5 million. Up 16% on last year's result.
G8 Education Ltd (ASX: GEM)
Following a disappointing half-year result back in August, the shares of this leading childcare operator came crashing down. Although they have rebounded a touch since then, at the current price they still provide investors with an estimated full year fully franked 7.5% dividend. Like many companies on the ASX, management has advised that it expects a stronger second half. If it delivers on this then G8 Education might prove to be an absolute bargain at today's price.
Harvey Norman Holdings Limited (ASX: HVN)
This retailer's shares are changing hands at under 14x estimated FY 2017 earnings according to CommSec, which is a significant discount to rival JB Hi-Fi Limited (ASX: JBH). Although its earnings growth is expected to slow over the next few years, its dividend could be a great source of income for investors. In FY 2017 Harvey Norman shares are forecast to provide investors with a fully franked 6% dividend. This makes it more attractive than JB Hi-Fi right now in my opinion.
