These dividend shares are great alternatives to Westpac Banking Corp

When it comes to dividend shares, I think the big four banks are a great starting point for income investors.

But whilst I think the Westpac Banking Corp (ASX: WBC) share price is in the buy zone after its recent sell-off, some investors may already have significant exposure to the banking industry or may even want to avoid the industry altogether.

In light of this, I’ve picked out a couple of dividend shares which I think are great alternatives to Westpac today. They are as follows:

Dicker Data Ltd (ASX: DDR)

This founder-led wholesale computer hardware company’s shares may have risen almost 30% since this time last year, but they still provide a dividend to rival the banks. Thanks to new vendor agreements and favourable market trends, last year Dicker Data delivered net profit after tax growth of 25%. With cloud, digital transformation, and the Internet of Things presenting new market opportunities and revenue streams for the company, I expect more of the same this year. Management has stated that it intends to pay a fully franked 16.4 cents per share dividend this year, which equates to a 6.9% yield at today’s share price.

Telstra Corporation Ltd (ASX: TLS)

Following a sell-off in the telco sector in the last 12 months, this telco giant’s shares now provide investors with a trailing fully franked 7.1% dividend. Whilst there are concerns that increased competition in the industry could impact Telstra’s profitability, I remain confident that its industry-leading position and unrivalled networks give it an edge over its growing number of competitors. I expect this and its significant cost-savings plan to allow it to grow earnings and its dividend at a steady pace for the foreseeable future.

This third dividend share is another great alternative to Westpac in my opinion.

Its huge fully franked yield and international expansion plans could make it a great investment today.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corp. The Motley Fool Australia owns shares of Dicker Data Limited and Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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