The Australian share market currently has a generous average dividend yield of 3.8%.
While this is better than anything on offer from savings accounts and term deposits, it still pales in comparison to some of the yields on offer on the market.
Here are three dividend shares with huge yields:
Dicker Data Ltd (ASX: DDR)
I think this wholesale distributor of computer hardware and software is one of the best dividend shares on the local share market. And thanks to the strong growth of the cloud computing market, I believe it is in a position to continue increasing its dividend in FY 2018. This year it plans to pay a fully franked 16.4 cents per share dividend in quarterly instalments, equating to a generous annual yield of 5.4%.
Lifehealthcare Group Ltd (ASX: LHC)
This medical device company recently reiterated its full-year guidance of high single to low double digit growth in both revenue and earnings in FY 2018. With its shares changing hands at under 16x trailing earnings, I think LifeHealthcare's shares are great value. Especially as they provide a trailing partially franked 5.1% dividend.
Telstra Corporation Ltd (ASX: TLS)
Although the telco giant cut its dividend last year, its shares will still provide a solid fully franked 6% dividend over the next 12 months if it follows through on its commitment to paying out 22 cents per share in FY 2018. I think this yield and the relatively low multiple its shares trade at make it a great option for investors.
