Today, we got the news that the ASX bank Westpac Banking Corporation (ASX: WBC) has joined Australia and New Zealand Banking Group Ltd (ASX: ANZ) in 'deferring' its interim dividend payment.
Whilst this would be a painful blow for many shareholders, it underscores the reality that no ASX dividend share is safe in this Brave New World.
With that in mind, here are three ASX dividend shares I would consider buying instead of an ASX bank today
Coles Group Ltd (ASX: COL)
Our first dividend share to consider is the supermarket giant Coles. Whilst its dividend isn't as high as what ASX bank investors might be used to, at least it's still around and (in my view) rock-solid.
Coles has recently reported a 12.9% increase in sales revenue for the March quarter – which should give the company plenty of financial firepower to weather whatever the rest of the year throws its way. Its trailing dividend would give an investor a grossed-up yield of 3.9% on current prices.
Washington H. Soul Pattinson & Co Ltd (ASX: SOL)
'Soul Patts' is the best dividend share on the ASX in my opinion. It has paid a dividend for over a hundred years and has increased this dividend every year for the last twenty. It owns a conservative portfolio of diverse ASX shares itself, which includes names like Brickworks Ltd (ASX: BKW) and TPG Telecom Ltd (ASX: TPM).
Soul Patts is currently trading for around the lowest share price in two years – which is a great opportunity to pick up a top share with a grossed-up dividend yield of 4.81% in my view.
WAM Global Ltd (ASX: WGB)
WAM Global is a Listed Investment Company (LIC) that focuses on finding undervalued growth companies from all over the world. It currently holds such companies as Microsoft, PayPal, Tencent, and Hasbro.
WAM Global is appealing for two reasons right now in my opinion. Firstly, it is trading for a substantial discount to its underlying value (as of March 31) – 17.55% on current prices. Secondly, it's a dividend growth stock that has been ramping up its payouts since it listed two years ago.
If you take the 50% hike investors got in February, it currently offers an annualised, grossed-up dividend yield of 5.14%. That's not a bad offer at all in my books.
