With an average dividend yield of 4.1%, the local share market is certainly one of the world's more generous markets.
But with so much choice it can be hard to pick out which dividend shares to invest in. To help you on your way, I've picked out three of my favourites. They are as follows:
Collins Foods Ltd (ASX: CKF)
Although this leading KFC operator's shares only provide a trailing fully franked 3.1% dividend, I believe that its domestic and international expansion will generate strong profit growth over the next decade, allowing it to grow its dividend significantly. This could make it a good buy and hold investment option in my opinion.
Dicker Data Ltd (ASX: DDR)
I think this wholesale distributor of computer hardware and software is in a great position to grow at an above-average rate for the foreseeable future thanks to the rise of cloud computing and the demand for related hardware. In FY 2017 Dicker Data plans to pay its shareholders a fully franked 16.4 cents per share dividend in quarterly instalments. This equates to a generous annual yield of 6.2% based on the current share price.
Japara Healthcare Ltd (ASX: JHC)
Thanks to the expected increase in demand for aged care services, I believe this aged care provider will be positioned perfectly to deliver above-average earnings growth over the next decade once it has completed its investment in additional beds. Currently Japara's shares provide a trailing partially franked 5.6% dividend.
