The Motley Fool

Forget CBA and buy these ASX dividend shares

Although I think that Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four are trading at attractive levels, not all investors feel the same way.

So, if you’re on the lookout for quality dividend options outside the banks, the three shares listed below could be the ones to buy. Here’s why I like them:

Aventus Group (ASX: AVN)

One good alternative to the banks is Aventus. It is a leading owner and operator of large format retail parks across Australia. It was a strong performer in FY 2019 and appears to have started the new financial year in an equally positive fashion. In light of this, periodic rental increases, and its high occupancy rates, I believe it is well-placed to deliver solid FFO growth again in FY 2020. Incidentally, earlier this week Macquarie slapped an outperform rating and $3.12 price target on its shares. It expects Aventus to pay a 17.1 cents per share distribution in FY 2020, which equates to a 6.15% dividend yield.

Coles Group Ltd (ASX: COL)

Although it doesn’t provide as generous a dividend as Aventus or the banks, I still feel Coles would be a great option for income investors. Due to its refreshed strategy and focus on automation, I believe the supermarket operator could be a great buy and hold option. Based on earnings forecasts and its dividend policy, I estimate that its shares provide a fully franked forward 3.5% dividend.

Telstra Corporation Ltd (ASX: TLS)

A final option for income investors to consider is Telstra. I think now could be a good time to consider a patient investment in its shares. This is due to its improved outlook now that the end of the NBN rollout is in sight. In addition to this, a return of rational competition in the telco space and the arrival of 5G should be a boost to its future growth. At present the telco giant’s shares offer a trailing fully franked 4.5% dividend.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

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 over 40% off it's high, all while offering a fully franked dividend yield over 3%...

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

See for yourself now. Simply click here or 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.


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 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.