If there's one thing income investors love, it's watching the dollars trickle in and stack up as their dividend shares deliver. Simply put, it really gives the sense that you are making money while you are sleeping.
However, as investors, we reserve the right to be picky with our investments. Not everyone is industry agnostic when it comes to the share market. This presents a challenging case if you are salivating for some dividend delights, but aren't so keen on the mining and banking sectors.
Here's a look at where a couple of investing experts turn to outside of the ASX dividend shares staples.
Looking beyond the regular dividend shares of the ASX
Whether it be for ethical reasons, or maybe mining and banking shares just aren't your jam, looking for shares with a reasonable yield outside of these sectors can be a challenge.
For example, below is a snapshot of the highest yielding ASX shares in the All Ordinaries Index (ASX: XAO) with dividend per share growth of more than 5% in the last year… do you notice anything?
| ASX-listed company | Dividend yield | Sector |
| Base Resources Limited (ASX: BSE) | 20.9% | Mining |
| Fortescue Metals Group Limited (ASX: FMG) | 13.7% | Mining |
| BSP Financial Group Ltd (ASX: BFL) | 13.0% | Financials |
| Zimplats Holdings Ltd (ASX: ZIM) | 10.7% | Mining |
| Grange Resources Limited (ASX: GRR) | 9.88% | Mining |
| Jupiter Mines Ltd (ASX: JMS) | 9.26% | Mining |
| Euroz Hartleys Group Ltd (ASX: EZL) | 9.20% | Financials |
| New Hope Corporation Limited (ASX: NHC) | 9.16% | Energy |
| BHP Group Ltd (ASX: BHP) | 9.03% | Mining |
| VGI Partners Ltd (ASX: VGI) | 8.81% | Financials |
As you might have recognised, mining and financials dominate the top-yielding dividend shares. So, what are some other options for investors? Dr Don Hamson from Plato Investment Management has his eyes on energy and consumer discretionary.
Shared in an interview with Livewire, Hamson highlighted energy shares as a beneficiary of supply shortages. In short, the higher realised prices for energy commodities should help boost dividends for these companies. While not a pick from Hamson himself, energy outfit New Hope is the only ASX dividend share outside of the mining and financials sector that appeared in our top-yielding names.
Is tech even an option for dividends?
While the tech sector has been lumped into a negative boat among investors recently, Janus Henderson portfolio manager Jane Shoemake thinks that could be a mistake.
Although we might have to look further abroad, Shoemake believes there are opportunities for bagging a decent dividend share in the tech sector. Specifically, the portfolio manager named Microsoft Corporation (NASDAQ: MSFT) as a dividend share that might be overlooked by investors. Supplying justification, Shoemake said:
[…] we believe it is important not to consider just the yield, but also the potential for a company to sustain and grow its dividend. Some lower-yielding stocks, such as those in the technology sector, for example, offer very attractive dividend growth characteristics.
With a yield of 0.8%, it doesn't exactly churn out the same kind of yields as ASX mining companies. However, the expert noted that the company has been consistently growing its dividend by around 10% per annum for several years.
