After a sharp decline in 2018 the Westpac Banking Corp (ASX: WBC) share price has fallen to a level that means its shares offer one of the most generous dividends on the Australian share market.
At present the banking giant's shares provide a staggering trailing fully franked 7.8% yield.
Similarly generous yields are on offer with banking sector peers Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).
ANZ Bank's shares offer a trailing fully franked 6.8% yield and NAB's shares offer a massive trailing fully franked 8.6% yield.
While I'm not convinced that NAB's dividend is sustainable, I feel confident that the ANZ Bank and Westpac dividends are. In light of this and the low multiples they trade at, I think both banks are well worth considering today.
However, I don't expect bank shares to rerate higher in the near term, so investors would need to be patient.
I expect most investors are waiting for the Royal Commission final report to be released in February before considering an investment. This could be due to concerns that Commissioner Hayne will recommend harsher penalties than the market has predicted.
I'm optimistic that the worst case scenarios have been priced in now, making the banks good options if your portfolio doesn't already have exposure to them.
But if you're not quite ready to invest in the banks then I think the National Storage REIT (ASX: NSR) dividend could be worth considering.
Although this storage giant's units hit a 52-week high on Thursday, they currently offer a 5.2% distribution yield.
Furthermore, I believe increasing demand for its facilities and its hefty cash balance to fund its growth through acquisition strategy means it is well-positioned to grow its distribution at a solid rate over the coming years.
Overall, I think it is a great alternative to the banks right now.
