Although I think the Australia and New Zealand Banking Group (ASX: ANZ) dividend is one of the most generous available to investors on the market at the moment, I'm not a fan of its current share price.
At a little under 16x trailing earnings I think ANZ's shares are on the expensive side and would suggest investors hold off starting an investment for the time being. In my opinion a good entry price would be close to the $28 mark.
So instead of paying over the odds for ANZ's dividend, I would recommend investors take a look at these high-yielding dividend shares instead:
G8 Education Ltd (ASX: GEM)
This leading childcare operator currently provides investors with a trailing fully franked 5.9% dividend. Whilst G8 Education recently announced a solid half-year result, the announcement that it placed shares at a premium with China First Capital is what caught my eye. The company raised $212.8 million in order to fund growth opportunities. I expect this could result in solid bottom line growth which allows the company to grow its dividend even further over the next few years.
Mantra Group Ltd (ASX: MTR)
I think the accommodation provider behind brands such as Peppers and BreakFree could be a big winner from the inbound tourism boom that Australia is experiencing. Although its CBD portfolio has underperformed in recent years, I expect management to successfully turn things around to complement its other thriving businesses. At the current share price Mantra provides investors with a trailing fully franked 4% dividend.
Retail Food Group Limited (ASX: RFG)
The master franchisor of popular brands including Gloria Jean's and Donut King is arguably my favourite dividend share on the ASX. Management has increased its dividend each year for the last decade and looks set to do the same this year. At the current share price Retail Food Group provides a trailing fully franked 5.5% dividend. With its international expansion going well, I believe this could be one for patient buy and hold investors.
