Although I think the Commonwealth Bank of Australia (ASX: CBA) dividend is a great option for income investors at the moment, I can completely understand why some investors aren’t keen on buying bank shares.
So for those investors I’ve picked out three dividend shares that I think would be a great alternative to CBA. They are as follows:
Dicker Data Ltd (ASX: DDR)
Dicker Data is a distributor of information technology products across Australia and New Zealand. A combination of strong demand and new vendor agreements has led to the company growing both its earnings and dividend at a very strong rate over the last few years. Its performance has been particularly impressive over the last 12 months, leading to its shares rallying 66% higher since this time last year. Despite this strong gain, its shares still provide a fully franked 4.4% yield based on its plan to pay a 22 cents per share dividend in FY 2019.
Rural Funds Group (ASX: RFF)
One of my favourite buy and hold options for income investors would have to be Rural Funds. The agriculture-focused real estate property trust has a number of quality assets across a wide range of industries including cattle, almonds, and wine production. Due to the quality of its portfolio, long term leases, and periodic rental increases, I believe it is well-placed to grow its distribution at a solid rate over the next decade. Its units currently offer investors a 4.8% forward distribution yield.
Telstra Corporation Ltd (ASX: TLS)
Due to the return of rational competition, cost cutting opportunities, and its leadership in 5G, I think Telstra is a good option for income seekers again. Especially now that it has cut its interim dividend down to a sustainable level and is likely to do the same with its final dividend in August. Based on this, I estimate that its shares currently offer a fully franked 4.45% dividend yield.
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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 Dicker Data Limited, RURALFUNDS STAPLED, and Telstra Limited. 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.