I think Westpac Banking Corp (ASX: WBC) and the rest of the big four banks have fallen to attractive levels for income investors.
However, not everyone is keen to invest in the banking sector because of the pandemic.
For those investors, I have picked out two ASX dividend shares which I think could be top alternatives. Here's why I would buy them:
Aventus Group (ASX: AVN)
The first ASX dividend share I would suggest investors buy instead of Westpac is Aventus. It has been one of the property industry's positive performers during the pandemic. This is thanks to its focus on large format retail parks. It owns a total of 20 centres across Australia, which are home to many of the largest retailers the country has to offer. Pleasingly, these properties have a high weighting towards every day needs.
This has meant that the company has been relatively unaffected by the crisis. So much so, it recently released its full year results and revealed a solid 4.2% increase in funds from operations (FFO) to $100 million. It also reported rent collections of 87% through the COVID-19 period and a high occupancy rate of 98%. I expect this positive form to continue over the coming years and believe it is well-positioned to deliver another solid result in FY 2021. Based on the current Aventus share price, I estimate that it offers a 5% FY 2021 dividend yield.
Rural Funds Group (ASX: RFF)
Another ASX dividend share I would buy is Rural Funds. It is an agriculture-focused property group which owns 61 properties across five agricultural sectors – almonds, cattle, cropping, vineyards, and macadamias properties. At the end of FY 2020, the company's weighted average lease expiry (WALE) stood at a lengthy 10.9 years. These leases have a high weighting to blue chip customers. Approximately 78% of its revenue is coming from corporate or listed tenants such as wine company Treasury Wine Estates Ltd (ASX: TWE).
This has allowed Rural Funds to continue its growth during the pandemic. It reported an 8% increase in property revenue to $72 million in FY 2020. Looking ahead, management reaffirmed its plan to grow its distribution by 4% in FY 2021 and intends to pay shareholders 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a 4.8% yield.
