The Motley Fool

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

Later this month Telstra Corporation Ltd (ASX: TLS) has been tipped to announce another cut to its dividend when it holds its investor day.

In light of this, I would suggest income investors hold off an investment until after its meeting, just in case the cut (if there is one) is more severe than expected and its shares are dragged even lower.

In the meantime these three high yield dividend shares could be great alternatives:

Aventus Retail Property Fund (ASX: AVN)

Aventus is a retail property group which owns 20 retail parks across Australia. As of its half-year update, the company was enjoying an occupancy level of 98.6% and counted on the likes of Bunnings, The Good Guys, Officeworks, and Harvey Norman Holdings Limited (ASX: HVN) as tenants. This high occupancy level allowed the company to deliver a 3.4% increase in half-year funds from operations (FFO) on the corresponding period to $45 million. Management expects a similarly solid result in the second half, which I think could allow it to pay a full year distribution of 16.3 cents per share. This works out to be a yield of 7.3% based on its last close price.

Super Retail Group Ltd (ASX: SUL)

I think the retailer behind the Rebel, Macpac, Supercheap Auto, and BCF brands could be a good option for investors thanks to its undemanding valuation and generous dividend yield. At present Super Retail’s shares are changing hands at just 12x trailing earnings and offer a trailing fully franked 5.5% dividend. I’m optimistic that company will be able to deliver solid growth over the coming years if its Macpac acquisition is a success and turns around the flagging performance of its Leisure segment.

WAM Capital Limited (ASX: WAM)

WAM Capital is one of Australia’s leading investment companies and one of the better dividend options on the local share market. Not only does it currently offer investors a market-beating trailing fully franked 6.4% dividend, it is on course to lift its dividend for a ninth year in a row in FY 2018. Considering the strong performance of its funds this year, I would not be surprised to see the listed investment company make it a decade of dividend increases next year.

Finally, here's another dividend share that lifted its interim dividend by a whopping 27% this year.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 AVENTUS RE UNIT. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.