It's a tough time for savers out there. Term deposits are paying a measly 2% and government bonds aren't a whole lot better. Fortunately, finding lucrative dividend-paying shares is much easier.
Here are 5 high-yielding dividend shares that are also fully franked – perfect for the income-seeking investor:
Retail Food Group Limited (ASX: RFG) – yields 5.6% fully franked
This master franchisor operates a capital-light business model where it effectively outsources much of the legwork to its franchisees. Currently the business is expanding overseas and it hopes to generate a sizeable chunk of its revenues outside Australia by 2020. Retail Food Group has a strong track record of growing profits and dividends and looks attractive at today's prices.
Platinum Asset Management Limited (ASX: PTM) – yields 6.3% fully franked
This asset manager has a record of growth although it remains sensitive to fund in- and out-flows as well as fluctuations in global financial markets. However, Platinum has assembled a market beating record across its funds and appears to be one of the better Australian fund managers. At today's prices and with that dividend, the business looks appealing.
Lifehealthcare Group Ltd (ASX: LHC) – yields 6.5% fully franked
This medical device distributor has perhaps over-reached itself financially, in my opinion, and I half expect that the dividend could be cut to fund further growth. While I know that is not the most inspiring description of a dividend stock, Lifehealthcare is a small player in a fragmented market that can grow both by acquisition, and organically by selling new products. As long as it acts in a financially prudent way, it could prove a market beater at today's prices.
Dicker Data Ltd (ASX: DDR) – yields 6.9% fully franked
Another distributor like Lifehealthcare above, this time of computer parts and software. Dicker Data has a long track record, is founder-led, and has been able to grow earnings and dividends at a decent clip via acquisitions and adding new products to its stable. One downside is that the company aims to pay out 100% of profit, which leaves the dividend vulnerable to a bad year, but the 6.9% dividend is attractive for obvious reasons.
Suncorp Group Ltd (ASX: SUN) – yields 5.4% fully franked
This bank/insurer/superannuation provider has an attractive mix of businesses that, although somewhat cyclical, are also highly likely to generate reliable and attractive income for shareholders over the long term. While none of these businesses are growing very rapidly – around 2% per annum – Suncorp looks to be one of the less expensive Australian banks and has a dividend yield to match.
