Commonwealth Bank of Australia (ASX: CBA) has been a long-time darling of dividend investors, but it's not the greatest buy at the moment.
Sure, interest rate rises might be helping margins for banks. But a looming economic slowdown could cancel out that tailwind.
Professional investors are staying away from the big bank.
According to CMC Markets, not one of 16 analysts currently rate Commonwealth Bank shares as a buy.
In fact, 11 of them are urging investors to sell.
Goldman Sachs Group Inc (NYSE: GS) analysts reported last week that Australian bank shares are overpriced at the moment.
They are keeping a sell rating on CBA shares specifically.
"We cannot justify the 12-month forward [price-to-earnings ratio] premium (ex-dividend adjusted) that CBA is trading on versus its peers."
So if we can't rely on an old favourite, where should one look for dividends?
A quality dividend stock not often talked about
My pick for a reliable income stock right now is petrol refinery and service station operator Viva Energy Group Ltd (ASX: VEA).
Viva runs the Geelong Refinery as well as the Shell network of petrol stations.
The business expanded its fuel retail footprint with the acquisition of the Coles Express chain from supermarket giant Coles Group Ltd (ASX: COL) towards the end of the last year.
It has an outstanding dividend yield of 8.57% that is fully franked.
Viva shares have managed to steadily grow investors' capital too. The share price has more than doubled since the COVID-19 crash in March 2020, without too many dramatic troughs on the way.
The Motley Fool's Bernd Struben also picked Viva as his top dividend stock earlier this month.
"I like Viva Energy as both an ASX income share and one for potential capital appreciation," he said.
"The company has been expanding through a series of strategic acquisitions."
The professional community is pretty keen on Viva shares too.
Seven out of 12 analysts currently covering the stock rate it as a buy on CMC Markets.
