With term deposits and high interest savings accounts providing extremely slender yields, I believe investors in search of income would be better off looking to the share market.
Three dividend shares which I think income investors should take a close look at are listed below. Each pays a market-beating fully franked dividend, with plenty of room for growth in the future in my opinion.
Here they are:
Event Hospitality and Entertainment Ltd (ASX: EVT)
The shares of the company behind popular entertainment and accommodation brands such as Event Cinema, Rydges, and Thredbo Alpine Resort provide investors with a trailing fully franked 4.2% dividend. I feel Event could be in a position to grow its dividend substantially over the next decade thanks to the strong tailwinds the company is experiencing from Australia's tourism boom. This could make it a great buy and hold investment in my opinion.
Flight Centre Travel Group Ltd (ASX: FLT)
At the current share price this leading travel agent provides investors with a trailing fully franked 4.6% dividend. Flight Centre may be going through a spot of turbulence at the moment, but I believe investments the travel agent has made in China and India has positioned it for solid long-term growth. With its shares down 33% in the last 12 months, now could be an opportune time to snap up some shares.
Suncorp Group Ltd (ASX: SUN)
The shares of this insurance giant currently provide a trailing fully franked 5.3% dividend. I believe this makes it one of the best on the ASX, especially with its new operating model gathering pace. In its recent half-year results, Suncorp reported an underlying insurance trading ratio of 11%, up from 10.1% during the prior corresponding period. The ITR is an important measure of profitability for an insurer and pleasingly is on a path to 12% according to management. Should it deliver on this then I believe Suncorp will be in a position to continue to grow its dividend further.
