Westpac Banking Corp (ASX: WBC) shares have had a strong run, and I think that is now being reflected in its valuation.
At current levels, I don’t see a lot of upside. The dividend is still there, but the starting point looks less attractive to me than it did a year ago.
That is why I would be looking elsewhere for income right now.
Here are three ASX dividend stocks I would buy instead.
Harvey Norman Holdings Ltd (ASX: HVN)
Harvey Norman slipped to a 52-week low this week, which is where it starts to get interesting.
Retail has been under pressure as interest rates rise, and that has weighed on the share price. But this is a business with a long track record and a strong brand in Australia and overseas.
What I like here is the asset backing. The company owns a large property portfolio, which adds another layer to the investment case beyond retail earnings.
At this lower share price, its dividend yield is forecast to be over 8% in FY27 according to CommSec, which is why I think it is worth a closer look for income-focused investors.
Nick Scali Ltd (ASX: NCK)
Nick Scali is down close to 40% from its 52-week high, reflecting concerns over softening conditions in the furniture retail market.
Even so, the business has been through these cycles before.
It has a focused model, strong margins, and a history of managing inventory and costs well. That tends to support profitability even when conditions are softer.
With the share price well below previous levels, I think its forecast 5% dividend yield (according to CommSec) and potential for a recovery make this one stand out.
Lottery Corporation Ltd (ASX: TLC)
Lottery Corporation offers something different as an ASX dividend stock.
It hasn’t seen the same kind of pullback as the others, but it provides a steady income stream backed by a defensive business model.
Demand for lottery products tends to hold up well across different conditions, which supports consistent cash flow and dividends.
With a yield around 3%, it adds a level of stability to an income portfolio, which I think is worth having alongside more cyclical names.
Foolish takeaway
Westpac still offers income, but I think the current valuation leaves less room for upside.
These three ASX dividend stocks offer a different mix. Harvey Norman and Nick Scali bring recovery potential at lower share prices, while Lottery Corporation provides steady income backed by a more defensive model.
That balance is what I would be looking for right now.
The post Forget Westpac shares, I’d buy these ASX dividend stocks appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right nowâ¦
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- 3 reasons to buy Westpac shares today
- 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
- Would Warren Buffett buy this ASX 200 share?
- 3 ASX shares Bell Potter rates as top buys
- 6 ASX 200 shares downgraded by the experts this week
Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Nick Scali and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.