Telstra Corporation Ltd (ASX: TLS), TPG Telecom Ltd (ASX: TPM) and Flight Centre Travel Group Ltd (ASX: FLT) offer fully franked dividends.
Telstra Corporation dividend yield: 6.4%
The Telstra share price has fallen 9% over the past six months to trade below $5. Concerns over the company's dominance in fixed products and the effects of the National Broadband Network (NBN) have been mounting.
Despite a poor financial update from the company earlier this month, however, analysts continue to forecast dividends at 31 cents per share fully franked. At today's prices, that equates to a dividend yield of 6.4% fully franked, or over 9% grossed up.
TPG Telecom dividend yield: 2.4%
While Telstra's profits appear to be weakening in the face of the NBN, TPG Telecom continues to go from strength to strength. Following a recent fall in its share price, the company's dividend yield has increased.
However, an investment in TPG packs more than a dividend. With a push into mobiles and overseas, TPG offers modest long-term growth prospects, in my opinion.
Flight Centre Travel Group dividend yield: 3.5%
Flight Centre Travel Group is a company many investors believe has its back against the wall. Flight Centre owns Australia's largest network of travel agents, with stores dotted across shopping centres and on street corners. It also has a growing corporate business, and is expanding further in the UK and USA. The rise of online is perceived to be its biggest threat.
Foolish Takeaway
These three companies offer big fully franked dividends to shareholders. However, it is vital to remember that more goes into a sound investment strategy than dividends alone.
In my opinion, it may best to adopt a wait and see approach with Flight Centre and Telstra in 2017.
If I had to pick one stock to buy today it would be TPG Telecom, for dividend income and growth over the long term.
