As well as blue-chip shares such as Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES), there are a number of small-cap shares offering investors above-average dividend yields.
Two which I think are worth a closer look are listed below:
Baby Bunting Group Ltd (ASX: BBN)
This baby products retailer's shares have now lost over a third of their value since the turn of the year due largely to concerns over Amazon's arrival and competitive pressures. The closure of several competitors has led to heightened clearance activities, weighing on Baby Bunting's performance.
But ultimately this is likely to be just a temporary headwind and I expect trading conditions will improve again in the near future. This could make it worth grabbing hold of shares today, especially as they provide a fully franked trailing 4.7% dividend.
Think Childcare Ltd (ASX: TNK)
The shares of this fast-growing childcare centre operator currently provide investors with a trailing fully franked 4.6% dividend. Due to favourable changes in childcare funding and Think's pipeline of childcare centres waiting to be acquired via its incubator program, I expect it to be in a position to grow its dividend considerably over the next decade.
I believe this could make it a great option for investors and a cheaper alternative to rival childcare operator G8 Education Ltd (ASX: GEM).
