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Forget CBA and buy these ASX dividend shares

Whilst I think the banks are great options for income investors, not everyone is keen on them.

So if you’re looking for a source of income from shares outside Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four, the three dividend shares listed below could be good options for you.

Here’s why I like them:

BWP Trust (ASX: BWP)

BWP is a real estate investment trust which earns the majority of its income as the landlord to hardware giant Bunnings. In FY 2019 BWP reported like-for-like rental growth of 2.3%. This helped support a 2% increase in its distribution to 18.1 cents per unit (excluding its special dividend). Pleasingly, management has good visibility on its future earnings. As a result, it is confident that it will be in a position to increase its distribution further in FY 2020. At present its units offer a trailing 4.4% distribution yield.

Lendlease Group (ASX: LLC)

Another top option for income investors to consider is Lendlease. Its performance has been a touch underwhelming over the last couple of years, but I’m confident the international property and infrastructure group is over the worst of its issues now. Especially given its positive long term growth outlook thanks partly to its multi-billion dollar development project with Google. But that’s not the only project in its pipeline. As of its last update, Lendlease’s development pipeline was approaching $100 billion in project value. If everything goes to plan, I expect this to support solid earnings and dividend growth for the many years to come. At present I estimate that its shares offer a fully franked 3.7% forward dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another company which has had a tough couple of years is Telstra. But like Lendlease, I believe it is back on track again. Especially with rational competition returning to the telco industry and the arrival of 5G internet. I believe Telstra’s leadership position in mobile and its world class network will allow it to fully leverage the benefits of the new technology. Another positive is that the end of the NBN rollout is now in sight. Which could mean that a return to growth isn’t that far away for the telco giant. Presently, its shares offer a trailing fully franked 4.6% dividend.

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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. 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.

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