Although it is hard to beat the dividends of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and the other big banks, many investors already have sufficient exposure to this side of the market.
The good news for those looking to maintain a diversified portfolio is that there are some great options for income investors outside the banking sector.
Three non-bank dividend shares that I think are great options for investors right now are listed below:
Accent Group Ltd (ASX: AX1)
One of my favourite options in the retail sector is Accent Group. It is the footwear-focused retailer behind the likes of Athlete's Foot, HYPE DC, and Platypus. I've been impressed with the way the company has delivered solid earnings growth this year despite tough trading conditions in the retail sector. And with conditions expected to improve because of tax cuts and a housing market rebound, FY 2020 could be an even stronger year. At present its shares provide a trailing fully franked 5.9% dividend yield.
Coles Group Ltd (ASX: COL)
Another top alternative to the big four banks could be this supermarket giant. I think it could be a good option for income investors due its defensive qualities and solid growth prospects. In addition to this, I believe the company's focus on cost cutting could underpin above-average earnings growth over the next decade. Combined with its favourable dividend policy, this could lead to generous dividends being distributed to shareholders over the long term. I estimate that its shares currently offer investors a fully franked forward 4% dividend.
National Storage REIT (ASX: NSR)
National Storage is one of the largest self-storage providers in the ANZ market. Despite its size, management continues to see plenty of opportunities to grow its network further through developments and acquisitions. I believe this and growing demand for storage services could lead to solid income and distribution growth over the next few years. At present its shares offer a forward yield of around 5.5%.
