While a big dividend yield is very nice, I think that dividends which have plenty of room to grow in the future are even better.
Three shares with dividends which I believe could grow significantly in the next decade are listed below. Here’s why I think they could be great buy and hold investments:
Capilano Honey Ltd (ASX: CZZ)
I think this leading honey producer could be a great option for buy and hold investors. Thanks to its new Beeotic prebiotic product range and strong demand from the China market, I believe the company is in a great position to grow earnings and its dividend at an above-average rate over the next decade. Currently its shares provide a trailing fully franked 2.8% dividend.
Greencross Limited (ASX: GXL)
With 164 veterinary practices and 237 retail stores across Australia, I believe Greencross is in a strong position to profit from the rising number of households that own pets. The most recent data from the RSPCA shows that pet ownership has increased to 63% of Australian households now. Due to its shares taking a tumble recently, they now provide a fully franked trailing 3.2% dividend.
Mantra Group Ltd (ASX: MTR)
Thanks to the Australian tourism boom, I expect this leading accommodation provider to grow its bottom line at a strong rate for the next few years at least. Whilst the end of the mining boom and the rise of Airbnb have led to the underperformance of its CBD portfolio, I expect management’s plans and increasing demand for rooms to help turn around the segment next year. Mantra’s shares provide a trailing 3.5% dividend.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Capilano Honey Limited and Greencross 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 Bruce Jackson.
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