Although I think that Westpac Banking Corp (ASX: WBC) and the other big four are trading at attractive levels, not all investors feel the same way.
So, if you're on the lookout for quality dividend options outside the big four banks, then the three shares listed below could be the ones to buy. Here's why I think they are good alternatives:
Accent Group Ltd (ASX: AX1)
Accent Group is the company behind retail footwear chains such as Athlete's Foot, HYPE DC, and Platypus. It also holds the exclusive licence to a number of key footwear brands in the Australian market. Thanks to a combination of sales growth and margin improvement, Accent Group has defied the weakness in the retail sector and delivered strong profit growth in FY 2019. I'm confident the company is well-positioned to achieve more of the same next year, which could allow the board to continue increasing its dividend. At present its shares provide a trailing fully franked 5.9% dividend yield.
Rural Funds Group (ASX: RFF)
As its name implies, Rural Funds is an agriculture-focused property group. I think it is up there as one of the best long-term dividend options on the local market due to the quality of its assets and its long-term tenancy agreements. As of its last update, Rural Funds' weighted average lease expiry was a sizeable 11 years. Combined with a mix of rent reviews and indexation, I believe the company is well-positioned to grow its rental income and distribution at a solid rate over the next decade. This year the company is planning to pay a distribution of 10.43 cents per share, which equates to a yield of 4.5%.
Scentre Group (ASX: SCG)
Another good alternative to the banks could be this real estate investment trust which owns all of the Westfield buildings in Australia and New Zealand. On Thursday the trust announced the sale of the office component of its Westfield Sydney asset for $1.52 billion to funds managed by Blackstone. It will use some of the proceeds to fund an $800 million share buyback. I believe this, its high occupancy rate, and periodic rent increases leave Scentre well-placed to grow its distribution in FY 2020. At present its shares offer a forward distribution yield of over 6%.
