Although the Westpac Banking Corp (ASX: WBC) share price has been on a solid run and climbed over 5% since this time last month, its shares still provide one of the more generous dividends on the local share market.
At the current share price Australia's oldest bank provides investors with a fully franked 5.8% dividend.
Not only is this vastly superior to the market-average, it is greater than the Commonwealth Bank of Australia (ASX: CBA) dividend and the Australia and New Zealand Banking Group (ASX: ANZ) dividend.
While it may not be as generous as the National Australia Bank Ltd (ASX: NAB) dividend, I believe Westpac is a stronger bank and doesn't carry as much risk as its big four rival.
Furthermore, although there were concerns that the banks may have to cut their dividends in the future due to the budget levy, I don't believe Westpac will have to.
Due to its out of cycle rate rises and strong regulatory capital position, I expect the bank to be in a position to at least maintain its current payout in FY 2018.
In light of this, I continue to believe that Westpac is the best option for investors in the banking sector and a great dividend idea for Australian income investors.
