If you are looking to escape the drought of low returns from term deposits, savings accounts and rental yields, keep reading.
The five stocks below operate under well-known Australian brands and their shares offer hefty, franked dividends.
Retail Food Group Limited (ASX: RFG)
Retail Food Group is the owner and operator of leading brands such as Crust Pizza, Pizza Capers, Donut King, Gloria Jean's and more. While all businesses have growth prospects, it is Retail Food Group's international coffee opportunity which has the most potential, in my opinion. At today's share price, the company is expected to pay a fully franked dividend equivalent to a yield of 4.64%.
G8 Education Ltd (ASX: GEM)
Australia's leading listed childcare centre owner and operator has continued to go from strength to strength. The group most recently announced that operating profit would fall between $158 million and $162 million for its current financial year. It also reaffirmed its quarterly dividend of 6 cents per share. Looking ahead, it is expected to pay a fully franked dividend of 6.6% in the next year.
Macquarie Group Ltd (ASX: MQG)
Australia's leading investment bank is at the pinnacle of almost every facet of finance in Australia. Despite a large part of the group's profits being dependent on the market environment, analysts expect further growth from Macquarie in the year ahead. Macquarie shares are forecast to yield 5% partially franked.
TPG Telecom Ltd (ASX: TPM)
The arrival of the NBN throughout Australia is expected to level the playing field for telecommunications companies like TPG. While the company continues to digest its acquisition of iiNET and the market is bracing for the impact of the NBN its shares appear reasonably priced for investors focused on the long-term. The company is forecast to pay a 2.2% fully franked dividend.
Flight Centre Travel Group Ltd (ASX: FLT)
Another share idea with a little 'hair on it' is Flight Centre, Australia's leading travel agent. Recently, analysts have criticised the company for its lack of growth potential in the face of competitive pressures and technological disruption. However, the company's current share valuation and forecast 4.8% fully franked dividend make it a compelling investment idea this Christmas.
Foolish takeaway
Shares are riskier than term deposits and savings accounts, with a good rule of thumb to only ever invest the cash that you would not need for another three years.
However, with a long-term investment horizon, the dividends on offer from some of Australia's leading companies make the risks worthwhile.
