The regional banks are often forgotten about by investors looking for dividends.
There are more shares out there beyond Telstra Corporation Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ).
Of course, investing in regional banks isn't diversifying away from the banking sector. Investors should be careful about concentrating too much of the portfolio into one industry.
Having said that, the regional banks have all grown beyond their state home and now have earnings around the country.
Bank of Queensland Limited (ASX: BOQ) is setting itself apart from other banks by offering a more personal service.
It's trading at 13x FY18's estimated earnings with a grossed-up dividend yield of 8.48%.
Bendigo and Adelaide Bank Ltd (ASX: BEN) has built a reputation for supporting a lot of charitable causes whilst still growing its profit.
It's trading at 13x FY18's estimated earnings with a grossed-up dividend yield of 8.35%.
Suncorp Group Ltd (ASX: SUN) is mostly known for its insurance brands like AAMI and Bingle. However, it also operates one of the largest retail bank operations in Australia.
It's trading at 14x FY18's estimated earnings with a grossed-up dividend yield of 8.24%.
Mystate Limited (ASX: MYS) is doing the state of Tasmania proud. It offers the full range of financial services and is now expanding to other states too.
It's trading at 12x FY18's estimated earnings with a grossed-up dividend yield of 8.76%.
Foolish takeaway
I think it's worth exploring whether any of the above options are worth an investment. Just be careful not to own too much of the banking sector.
Of the regional options, I'd prefer Mystate because its home state is probably the least at risk from debt levels in my opinion.
