One look at a total return chart of the Commonwealth Bank of Australia (ASX: CBA) share price and you know it has been a great dividend stock and enjoyed excellent share price appreciation.
In fact, Commonwealth Bank shares have rallied from less than $7 per share in the 90's to over $86 today.
In that time, dividends have also rocketed, from 40 cents per share to $4.20 per share.
1 ASX dividend share I'd buy before Commonwealth Bank in 2017
However, at today's valuation I think the Commonwealth Bank share price leaves a lot to be desired. It is by far the most expensive big bank and has the lowest dividend.
But the ASX dividend share I'd buy before Commonwealth Bank in 2017 is not another bank — it is Vocus Group Ltd (ASX: VOC).
Who is Vocus?
Vocus is the telecommunications company behind names like M2, Dodo, Commander, Primus and more. It has grown by buying other companies and organically.
In addition to having its fingers in retail services like broadband and utilities, Vocus also has an extensive physical network in Australia and globally, including data centres.
Vocus shares currently yield a dividend of 3.8% fully franked — or 5.4% in after-tax terms.
However, the company is expected to grow profits at a healthy clip in coming years. Currently, the shares trade around $4.30. But the consensus amongst analysts says they are worth $5.71!
Vocus is not as stable and mature as a $150 billion bank, of course, so I wouldn't make it a 10% position in my portfolio today.
However, for a modest position of, say, 3% I think Vocus shares could be added for a little more dividend firepower over the long run.
Foolish Takeaway
Comparing a $150 billion bank to a $2.7 billion telecommunications business is not exactly foolproof. However, I do believe Commbank shares are a little too expensive to buy at today's prices. Meanwhile, Vocus shares look very appealing around $4.30.
