Luckily for income investors in this low interest environment the Australian share market is easily one of the most generous in the world with its average dividend yield of approximately 4%.
Three shares that provide higher-than-average yields are listed below. Here's why I think investors ought to consider snapping them up today:
Dicker Data Ltd (ASX: DDR)
Last week this founder-led computer software and hardware wholesale distributor advised that it would increase its dividend by 10% to 18 cents per share in FY 2018 after forecasting another year of solid profit growth. Based on the last close price this means that Dicker Data's shares offer investors a trailing fully franked 6.2% yield. Another bonus with Dicker Data is that it pays this dividend in quarterly instalments.
Telstra Corporation Ltd (ASX: TLS)
Although opinion is largely divided on the future of this telco giant, I am reasonably bullish on its short-term future. I think cost cutting initiatives, the prospect of the NBN being written down by the Federal Government, and the arrival of 5G internet next year all put Telstra in a position to grow earnings ahead of inflation. All being well, this should allow Telstra to continue paying its 22 cents per share dividend for at least the next couple of years. Which means investors would receive a forward fully franked 6.4% yield if they snapped up shares today.
Westpac Banking Corp (ASX: WBC)
Although the Royal Commission is hanging over the banking sector, I remain optimistic that there will be no skeletons found in their respective closets. This could make any one of the banks a decent option for income investors at the moment following recent share price weakness. My pick of the bunch remains Westpac due to its valuation and yield. At present Westpac's shares provide a trailing fully franked 6.2% dividend.
