With an average dividend yield of 4%, there certainly is a lot for income investors to choose from on the local share market.
But three high yield dividend shares I would put at the top of my list right now are listed below. Here's why I like them:
Telstra Corporation Ltd (ASX: TLS)
Last week the Telstra share price fell to another multi-year low as investors continue to head to the exits. While I'm not convinced that its shares have bottomed just yet, I do think that its shares have fallen to a level that makes it a great option for income investors. Especially if the NBN is written down by the Federal Government as many predict it will be. This would allow for more generous NBN margins and help limit the gap in the telco giant's earnings. Based on its FY 2018 dividend plans, Telstra's shares provide a fully franked 7.1% yield at present.
WAM Capital Limited (ASX: WAM)
This year this leading investment company is on course to make it an impressive nine years in a row of dividend increases. And judging by the strong performance of its funds over the last few years and so far in FY 2018, I believe there's a strong chance that WAM Capital will go on to make it ten years in a row next year. At the current price the company's shares provide a trailing fully franked 6.3% dividend, which I think makes it a very attractive investment option.
Westpac Banking Corp (ASX: WBC)
While round two of the Royal Commission begins today and could weigh on the banking sector, I remain confident that nothing overly material will eventuate from proceedings. This could make it well worth considering an investment in the big four banks whilst they are down in the dumps. Especially considering the generous yields on offer. Westpac is my favourite of the bunch and offers investors a trailing fully franked 6.5% dividend at present.
