Although I think the Commonwealth Bank of Australia (ASX: CBA) dividend is a great option for income investors at the moment, I can completely understand why some investors aren't keen on buying bank shares.
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:
Dicker Data Ltd (ASX: DDR)
Dicker Data is a distributor of information technology products across Australia and New Zealand. A combination of strong demand and new vendor agreements has led to the company growing both its earnings and dividend at a very strong rate over the last few years. Its performance has been particularly impressive over the last 12 months, leading to its shares rallying 66% higher since this time last year. Despite this strong gain, its shares still provide a fully franked 4.4% yield based on its plan to pay a 22 cents per share dividend in FY 2019.
Rural Funds Group (ASX: RFF)
One of my favourite buy and hold options for income investors would have to be Rural Funds. The agriculture-focused real estate property trust has a number of quality assets across a wide range of industries including cattle, almonds, and wine production. Due to the quality of its portfolio, long term leases, and periodic rental increases, I believe it is well-placed to grow its distribution at a solid rate over the next decade. Its units currently offer investors a 4.8% forward distribution yield.
Telstra Corporation Ltd (ASX: TLS)
Due to the return of rational competition, cost cutting opportunities, and its leadership in 5G, I think Telstra is a good option for income seekers again. Especially now that it has cut its interim dividend down to a sustainable level and is likely to do the same with its final dividend in August. Based on this, I estimate that its shares currently offer a fully franked 4.45% dividend yield.
