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3 high yield alternatives to the Telstra Corporation Ltd (ASX:TLS) dividend

Although I remain optimistic that Telstra Corporation Ltd (ASX: TLS) will be able to maintain its 22 cents per share fully franked dividend in FY 2019, not everyone is as sanguine as I am.

So for those income investors that want high yield dividend alternatives to Telstra, below are three great options. Here’s why I like them:

National Storage REIT (ASX: NSR)

I think National Storage would be a great alternative to Telstra. Thanks to the storage giant experiencing solid demand for its services, the company has embarked on an expansion plan that includes 11 new developments and a number of redevelopments. I believe this should allow the company to grow earnings and its distribution at a solid rate for the foreseeable future. This year National Storage intends to pay a distribution of between 9.6 cents and 10 cents per share. The middle of this guidance range equates to a forward yield of around 6.2%.

Super Retail Group Ltd (ASX: SUL)

I think that this retail conglomerate is one of the best dividend options in the retail sector right now. Management has recently acquired the Macpac brand in an effort to turn around its underperforming Leisure sector. If this proves successful then I think Super Retail could be positioned for solid profit growth over the next few years. Super Retail’s shares offer investors a trailing fully franked 5.5% dividend currently.

Westpac Banking Corp (ASX: WBC)

I think that this banking giant would be a great option for investors if they do not already have meaningful exposure to the banks. While the Royal Commission may mean that its share price is more volatile than normal, I believe its undemanding valuation and generous dividend offer a compelling risk/reward. Based on its last close price, Westpac’s shares provide a trailing fully franked 6.5% dividend.

And here is a fourth dividend share that could be a top alternative to Telstra.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended National Storage REIT. 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 Scott Phillips.

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