3 high yield alternatives to the Telstra Corporation Ltd (ASX:TLS) dividend


Although I remain optimistic that Telstra Corporation Ltd (ASX: TLS) will be able to maintain its 22 cents per share fully franked dividend in FY 2019, not everyone is as sanguine as I am.

So for those income investors that want high yield dividend alternatives to Telstra, below are three great options. Here’s why I like them:

National Storage REIT (ASX: NSR)

I think National Storage would be a great alternative to Telstra. Thanks to the storage giant experiencing solid demand for its services, the company has embarked on an expansion plan that includes 11 new developments and a number of redevelopments. I believe this should allow the company to grow earnings and its distribution at a solid rate for the foreseeable future. This year National Storage intends to pay a distribution of between 9.6 cents and 10 cents per share. The middle of this guidance range equates to a forward yield of around 6.2%.

Super Retail Group Ltd (ASX: SUL)

I think that this retail conglomerate is one of the best dividend options in the retail sector right now. Management has recently acquired the Macpac brand in an effort to turn around its underperforming Leisure sector. If this proves successful then I think Super Retail could be positioned for solid profit growth over the next few years. Super Retail’s shares offer investors a trailing fully franked 5.5% dividend currently.

Westpac Banking Corp (ASX: WBC)

I think that this banking giant would be a great option for investors if they do not already have meaningful exposure to the banks. While the Royal Commission may mean that its share price is more volatile than normal, I believe its undemanding valuation and generous dividend offer a compelling risk/reward. Based on its last close price, Westpac’s shares provide a trailing fully franked 6.5% dividend. 

Here’s how you can strike it rich in the share market…

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
James Mickleboro
James Mickleboro studied economics in the United Kingdom before coming to Australia and landing a job at a fund manager. He is part of the CFA Institute's Chartered Financial Analyst program. He loves researching and writing about Australian equities.