Whilst I think that Westpac Banking Corp (ASX: WBC) would be a good option for income investors at the current price, not everyone is comfortable investing in bank shares right now.
So, for those investors, I have picked out three alternative dividend shares to consider buying. Here they are:
Aventus Group (ASX: AVN)
Aventus is the largest fully integrated owner, manager and developer of large format retail centres in Australia. Through its 20 centres, it has a diverse tenant base of 590 quality tenancies, with national retailers representing 87% of its total portfolio. This includes the likes of Chemist Warehouse, The Good Guys, Officeworks, and Bunnings. Aventus has been experiencing solid demand for its tenancies, which I believe leaves it well-positioned for further income and distribution growth over the coming years. Presently, I estimate that its shares offer a forward 6.1% distribution yield.
Macquarie Group Ltd (ASX: MQG)
Although Macquarie is part of the banking sector, it is a very different beast. Macquarie earns its money from a diverse range of revenue streams and can continue to thrive even when the big four are struggling with tough trading conditions. In light of this, I think it is a great alternative to Westpac and the big four banks. At present Macquarie's shares offer income investors a partially franked 4.2% dividend yield.
Wesfarmers Ltd (ASX: WES)
Another top option for investors to consider buying is Wesfarmers. I think now could be a good time to pick up the conglomerate's shares due to the housing market recovery. Wesfarmers has a lot of exposure to the housing market through its Bunnings, Kmart, and Target brands. Increasing demand for home improvement products and white goods could underpin solid earnings and dividend growth in the coming years. I estimate that Wesfarmers will pay a FY 2020 dividend of $1.53 per share, which equates to a fully franked 3.6% dividend yield.
