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.
