Although I think Westpac Banking Corp (ASX: WBC) shares are arguably the best in the banking sector to own, I wouldn't be a buyer unless they came down below the $31.00 mark.
At this price I believe the shares of Australia's oldest bank offer a solid mix of value and income.
Until that happens I think investors may be better off considering one of these high-yield dividend shares:
RCG Corporation Ltd (ASX: RCG)
This footwear retailer's shares are currently changing hands at just over 10x trailing earnings and provide investors with a fully franked 8% dividend. I think this is a great mix of value and income, especially given its positive update today. According to the update, the company is on track to deliver on its sales and profit forecasts in FY 2018. Furthermore, same store sales growth is expected to continue to improve through to the end of the year.
Suncorp Group Ltd (ASX: SUN)
I have been impressed with the early success of Suncorp's new operating strategy. It was designed to simplify its business and allow the company to leverage its huge portfolio of brands through cross-selling. I expect things to continue to improve over the next 18 months, which could make it worth a look now. Especially as its shares provide a generous trailing fully franked 5.2% dividend.
Telstra Corporation Ltd (ASX: TLS)
While opinion is largely divided on the future prospects of the telco giant and how sustainable the proposed 22 cents per share dividend is, I remain confident that the company has enough opportunities to maintain it for at least the next three years. Beyond that a lot will depend upon how the Internet of Things and 5G market develops. In respect to the latter, the proposed speeds have the potential to make the NBN redundant. This could arguably be a big win for Telstra.
