3 ASX dividend shares I’d buy instead of Westpac

Westpac Banking Corp (ASX: WBC) has long been a popular choice for dividend investors.

And that’s easy to understand. The big four banks have historically paid generous fully franked dividends and have been reliable income generators for Australian investors.

But at the moment, I’m not convinced Westpac shares look particularly attractive.

Its share price has climbed strongly and its valuation now reflects a lot of optimism. As a result, I think it makes sense for investors to at least consider other opportunities in the market.

Personally, if I were looking for dividend income today, I would rather buy these ASX dividend shares instead of Westpac.

Telstra Group Ltd (ASX: TLS)

When I think about reliable dividend payers on the ASX, Telstra is one of the first companies that comes to mind.

The telecommunications giant generates steady cash flow from providing mobile, broadband, and network services to millions of customers across Australia. That kind of recurring revenue can be very supportive when it comes to paying dividends.

What stands out to me is how resilient the business model is. People might cut back on discretionary spending during tougher economic periods, but mobile and internet services are now essential parts of everyday life.

Telstra has also been investing heavily in its network and digital capabilities, which should help support its long-term competitiveness. In my view, that combination of reliable earnings and ongoing investment makes it an appealing option for income investors.

Wesfarmers Ltd (ASX: WES)

Wesfarmers might not always have the highest dividend yield on the ASX, but I still think it deserves attention from income-focused investors.

The company owns a portfolio of high-quality businesses including Bunnings, Kmart, and Officeworks. These retail operations generate strong cash flow and have historically delivered solid returns on capital.

What I personally like about Wesfarmers is the balance between income and growth. The company pays attractive dividends while also reinvesting in new opportunities and expanding its businesses.

That approach has helped it deliver strong long-term shareholder returns, which in my view can be just as important as the headline dividend yield.

APA Group (ASX: APA)

Infrastructure businesses can be particularly attractive for income investors, and APA Group is a good example.

The company owns and operates one of Australia’s largest energy infrastructure networks, including gas pipelines and energy assets that stretch across the country.

Many of its assets operate under long-term contracts, which helps provide predictable revenue streams. That kind of stability can support consistent dividend payments.

While the energy sector is evolving, infrastructure assets like pipelines remain an important part of the energy system. Personally, I think that stability makes APA a compelling option for investors seeking dependable income. Its forecast dividend yield of over 6% in FY26 is also attractive.

Foolish takeaway

Westpac will likely remain a popular choice for dividend investors.

But in my view, income opportunities on the ASX go well beyond it.

Companies like Telstra, Wesfarmers, and APA offer exposure to different industries while still providing attractive dividend income. For investors looking to diversify their income streams, I think these types of businesses are well worth considering.

The post 3 ASX dividend shares I’d buy instead of Westpac appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.