With term deposits offering paltry returns at the moment I believe the share market is the best place for retirees to invest their hard earned money.
Whilst there are a good number of quality options for income investors, three high-yielding dividend shares in particular jump out at me today. They are as follows:
G8 Education Ltd (ASX: GEM)
Although this leading childcare operator had a reasonably mixed start to FY 2016, December's update revealed that trading picked up in the second-half as management predicted. Full-year earnings before interest and tax is expected to be between $158 million and $162 million, roughly flat on last year's result. I expect the strong finish to the year will lead to a return to growth in FY 2017, which could make it an opportune time to invest. Especially as G8 Education's shares are expected to provide a fully franked 6.6% dividend next year according to CommSec.
IVE Group Ltd (ASX: IGL)
IVE Group is one of Australia's leading printing and marketing companies. I believe the company is set to have a strong FY 2017 thanks to two recent acquisitions which are expected to be accretive to earnings. Furthermore, the company recently announced a major new Wesfarmers Ltd (ASX: WES) contract win. At the current share price IVE Group's shares are forecast to provide investors with a fully franked 7.4% dividend over the next 12 months.
Telstra Corporation Ltd (ASX: TLS)
Whilst its days as a fast-growing telco company may be behind it, I still believe Telstra is positioned to deliver at least low-single digit earnings growth for the next few years. As well as its strong mobile business, I feel its expansion into the healthcare and Asia markets should help Telstra offset the decline in its core business. With its shares expected to provide a fully franked 6.2% dividend over the next 12 months, Telstra is an attractive option in my opinion.
