It's getting harder to find quality shares that pay a big yield but have a good chance of maintaining or growing that distribution.
I don't think the answer is to keep most of the money as cash because of how little of a return it would generate.
Here are three shares that offer big yields:
Cromwell Group (ASX: CMW)
Cromwell is a global real estate investment manager. It directly owns property that is valued at $2.5 billion and it has total assets under management of $11.2 billion across Australia, New Zealand and Europe.
Most of its assets under management relate to office property, with around 62% of assets in that category. A further 17% is in the retail sector and 12% in the industrial & logistics industry.
Cromwell has increased its distribution each year going back to 2011. It currently has a distribution yield of 7.94%.
WAM Capital Limited (ASX: WAM)
WAM Capital is the largest listed investment company (LIC) in the Wilson Asset Management stable.
The LIC has outperformed the Australian share market for long periods of time and it pays out a good portion of its portfolio returns as a growing, fully franked dividend.
The dividend has increased each year since the GFC and the yield is currently 8.78%, grossed-up.
National Australia Bank Ltd (ASX: NAB)
NAB is one of the country's largest banks and has benefited enormously from Australia's growing economy and housing market. I like that NAB is working with fast-growing businesses like REA Group Limited (ASX: REA) and Afterpay Touch Group Ltd (ASX: APT).
NAB has grown or maintained its dividend every year since the GFC. It currently has a grossed-up dividend yield of 9.32%.
Foolish takeaway
All three businesses clearly offer excellent income potential. At the current levels I would only be interested in WAM Capital because the other two could heavily suffer if and when interest rates rise.
