Not keen on Westpac? Then buy these top ASX dividend shares instead

I think Westpac Banking Corp (ASX: WBC) and the rest of the big four banks remain good value despite their strong gains over the last few weeks.

However, not everyone is keen on the banks and other investors may already have enough exposure to the sector.

So, if you’re looking for dividends outside the banking sector, then I would suggest you look at the shares below. Here’s why I would buy them:

BWP Trust (ASX: BWP)

The first ASX dividend share to consider ahead of Westpac and the rest of the big four is BWP. It is a real estate investment trust which leases the majority of its properties to Wesfarmers Ltd (ASX: WES) owned Bunnings Warehouse. As Bunnings is one of the highest quality retailers in the country, I believe it is a great tenant to have. Furthermore, with Wesfarmers also a substantial shareholder in BWP, its interests are firmly aligned with the investment trust. All in all, I believe BWP is well-positioned to deliver solid income and distribution growth over the next decade. At present I estimate that it offers investors a forward 5% yield.

Rural Funds Group (ASX: RFF)

Another property company which I think could be a great alternative to the big four banks is Rural Funds. It has a focus on Australian agricultural assets and owns a portfolio of high quality properties across different industries. These properties are leased by some of the biggest names in the industry such as Treasury Wine Estates Ltd (ASX: TWE) on ultra long leases.  Thanks to these long leases and fixed rental increases, I believe Rural Funds can grow its distribution at a strong rate over the next decade. In FY 2021 the company intends to grow its distribution to 11.28 cents per share. This equates to a 5.6% distribution yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at buying is Telstra. I think the telco giant is a great alternative to the big four banks due to its defensive qualities, attractive valuation, and generous yield. Another positive is that a return to growth doesn’t appear to be too far away. This is thanks to the NBN headwinds easing and its sizeable cost cutting and simplification plans. For now, I’m confident that its free cash flows are sufficient to maintain its 16 cents per share dividend for the foreseeable future. This equates to a fully franked 4.9% dividend yield.

More reading

• Two perspectives and a Buy recommendation
• Leading brokers name 3 ASX 200 shares to buy today
• Why Bendigo and Adelaide Bank, BWP, G8 Education, & Westpac are zooming higher
• 3 ASX 200 shares to watch this week
• Can the Wesfarmers share price continue to rise after its market update today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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