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.
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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.