When it comes to dividend shares, I think the big four banks are a great starting point for income investors.
But whilst I think the Westpac Banking Corp (ASX: WBC) share price is in the buy zone after its recent sell-off, some investors may already have significant exposure to the banking industry or may even want to avoid the industry altogether.
In light of this, I've picked out a couple of dividend shares which I think are great alternatives to Westpac today. They are as follows:
Dicker Data Ltd (ASX: DDR)
This founder-led wholesale computer hardware company's shares may have risen almost 30% since this time last year, but they still provide a dividend to rival the banks. Thanks to new vendor agreements and favourable market trends, last year Dicker Data delivered net profit after tax growth of 25%. With cloud, digital transformation, and the Internet of Things presenting new market opportunities and revenue streams for the company, I expect more of the same this year. Management has stated that it intends to pay a fully franked 16.4 cents per share dividend this year, which equates to a 6.9% yield at today's share price.
Telstra Corporation Ltd (ASX: TLS)
Following a sell-off in the telco sector in the last 12 months, this telco giant's shares now provide investors with a trailing fully franked 7.1% dividend. Whilst there are concerns that increased competition in the industry could impact Telstra's profitability, I remain confident that its industry-leading position and unrivalled networks give it an edge over its growing number of competitors. I expect this and its significant cost-savings plan to allow it to grow earnings and its dividend at a steady pace for the foreseeable future.
