As I mentioned yesterday, I think the Westpac Banking Corp (ASX: WBC) share price has risen to a level that means there's limited upside potential for it over the next 12 months.
In light of this, I would class Australia's oldest bank as a hold.
So if you're looking for dividend shares that provide both value and yield, I would suggest you take a look at the three shares listed below.
Baby Bunting Group Ltd (ASX: BBN)
This baby products retailer's shares have almost lost a third of their value this year. Unfortunately for Baby Bunting, it has been a victim of its own success. The closure of several competitors has led to heightened clearance activities, which has weighed on Baby Bunting's performance. I feel this is a temporary headwind and expect trading conditions will improve again next year. This could make it worth grabbing hold of shares today, especially as they provide a fully franked trailing 4.3% dividend today.
Dicker Data Ltd (ASX: DDR)
Thanks to the rise of cloud computing and its new Enterprise Data business unit, I believe this founder-led wholesale computer hardware company is well positioned for solid long-term growth. In FY 2017 Dicker Data intends to pay its shareholders a fully franked 16.4 cents per share dividend in quarterly instalments. Based on its current share price, this works out to being a very generous annual yield of 6.2%.
Telstra Corporation Ltd (ASX: TLS)
At under 10x trailing earnings I think the telco giant's shares are great value. Although opinion is divided on its ability to maintain a 22 cents per share dividend in the future after the NBN roll out is complete, I remain optimistic that there are growth and cost saving opportunities that will allow it to do so. Based on its current share price and management's guidance, Telstra's shares will provide a fully franked 6.3% dividend in FY 2018.
