Although I've been bullish on Australia and New Zealand Banking Group (ASX: ANZ) for much of the year, after its recent rally I feel its shares are fully priced now.
For this reason I wouldn't suggest investors start an investment in the bank, but rather wait for a better entry point in or around the $28 mark.
Until then investors might be better served with these shares which provide even bigger dividends currently:
G8 Education Ltd (ASX: GEM)
This childcare operator has had a mixed 12 months but I expect an improved performance in FY 2017 as cost savings and acquisitions accelerate its growth. Although it does have a lot of debt on its balance sheet, it has an interest coverage ratio of over 4x. I believe this indicates that the company's debt is more than manageable. With its shares expected to provide a fully franked 6.7% dividend next year according to CommSec, G8 Education could be a great option for income investors.
Telstra Corporation Ltd (ASX: TLS)
Although the days of high growth are behind it, I still believe this telco giant has lucrative opportunities in mobile, healthcare, and the Asia market that will allow it to grow earnings and its dividend in the low single-digits for the next few years. With its shares providing an estimated 6.2% fully franked dividend in FY 2017, now could be a great time to snap them up.
Village Roadshow Ltd (ASX: VRL)
It hasn't been a great year for this film distributor and cinema and theme park operator. Its shares are down almost 40% year to date thanks largely to a big drop in March after announcing a half-year loss. The good news is that things are improving and the tourism boom looks set to be a driver of growth for the company in the years ahead. So with its shares expected to provide a fully franked 6.3% dividend in the next 12 months, Village Roadshow's shares look attractive to me.
