3 cheap dividend shares to buy today

I think Westpac Banking Corp (ASX:WBC) shares are a hold now, so here are three cheap dividend shares to consider instead…

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As I mentioned yesterday, I think the Westpac Banking Corp (ASX: WBC) share price has risen to a level that means there's limited upside potential for it over the next 12 months.

In light of this, I would class Australia's oldest bank as a hold.

So if you're looking for dividend shares that provide both value and yield, I would suggest you take a look at the three shares listed below.

Baby Bunting Group Ltd (ASX: BBN)

This baby products retailer's shares have almost lost a third of their value this year. Unfortunately for Baby Bunting, it has been a victim of its own success. The closure of several competitors has led to heightened clearance activities, which has weighed on Baby Bunting's performance. I feel this is a temporary headwind and expect trading conditions will improve again next year. This could make it worth grabbing hold of shares today, especially as they provide a fully franked trailing 4.3% dividend today.

Dicker Data Ltd (ASX: DDR)

Thanks to the rise of cloud computing and its new Enterprise Data business unit, I believe this founder-led wholesale computer hardware company is well positioned for solid long-term growth. In FY 2017 Dicker Data intends to pay its shareholders a fully franked 16.4 cents per share dividend in quarterly instalments. Based on its current share price, this works out to being a very generous annual yield of 6.2%.

Telstra Corporation Ltd (ASX: TLS)

At under 10x trailing earnings I think the telco giant's shares are great value. Although opinion is divided on its ability to maintain a 22 cents per share dividend in the future after the NBN roll out is complete, I remain optimistic that there are growth and cost saving opportunities that will allow it to do so. Based on its current share price and management's guidance, Telstra's shares will provide a fully franked 6.3% dividend in FY 2018.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of Dicker Data Limited and 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 Bruce Jackson.

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