Although I think the Commonwealth Bank of Australia (ASX: CBA) dividend is a great option for income investors, I can understand why some investors aren't keen on buying its shares following today's disappointing third quarter update.
So for those investors I've picked out three dividend shares that I think would be a great alternative to CBA. They are as follows:
National Storage REIT (ASX: NSR)
I think that this self-storage operator would be a great alternative. Thanks to robust demand and its focus on driving increased income from multiple revenue streams, National Storage posted a 17.4% lift in underlying earnings to $26.3 million in the first half of FY 2019. The good news is that management is positive on its long-term outlook and sees plenty of opportunities to grow in a highly-fragmented storage industry. This year National Storage intends to pay a distribution of between 9.6 cents and 9.9 cents per unit, which equates to a forward yield of between 5.5% and 5.7%.
Rural Funds Group (ASX: RFF)
Another top dividend share to consider is this agriculture-focused real estate property trust which owns 49 properties across six agricultural sectors and multiple climatic zones. I believe Rural Funds is well-positioned to continue growing its distribution at a solid rate over the next decade thanks to the quality of its portfolio, its long term leases, and use of rental indexation. In respect to leases, at its last update it had a weighted average pro forma lease expiry of 11.4 years. In FY 2019 the company intends to increase its distribution to 10.43 cents per share, which equates to a forward 4.6% yield.
Transurban Group (ASX: TCL)
A final dividend share to consider buying ahead of CBA is this leading toll road operator. Thanks to growing demand for Transurban's roads and increasing toll prices, the company has been able to grow its dividend at a solid rate over the last decade. The good news is that due to increasing demand and its recent Westconnex acquisition, I feel confident Transurban is well-positioned to continue this trend for the foreseeable future. At present its units provide investors with a trailing distribution yield of 4.2%.
