MENU

2 small-cap dividend shares on my shopping list

Whilst blue chip shares such as Telstra Corporation Ltd (ASX: TLS) and Suncorp Group Ltd (ASX: SUN) are undoubtedly great options for income investors, I believe there are some equally great dividend shares in the small-cap space.

Two small-cap shares which I think could grow their dividends significantly in the future as their businesses grow are listed below. Here’s why I think they are worth considering today:

Tassal Group Limited (ASX: TGR)

Due to its shares tumbling 15% in the last three months, this vertically integrated salmon company’s shares currently change hands at a little over 13x forecast full-year earnings and provide a trailing fully franked 3.9% dividend.

I believe this makes it a great option for income investors, especially considering the favourable salmon pricing in wholesale and export markets the company is experiencing at present is expected to continue into FY 2018. This could put Tassal in a position to grow its earnings and dividend at an above-average rate.

Think Childcare Ltd (ASX: TNK)

One reason I’m particularly bullish on Think Childcare is its pipeline of newly developed, purpose built childcare centres around Australia which are waiting to be acquired progressively over the next five years from its incubators.

I believe this will provide it with a long runway for growth which makes this childcare provider a great buy and hold investment option. Right now its shares provide a market-beating trailing fully franked 4.2% dividend, but this could grow significantly in the future if its expansion goes to plan.

If you like dividend shares like Think Childcare and Tassal, then check out these five dividend stars as well.

Rich listers know the power of dividend shares!

In FY 2018 share market investors are staring down the barrel of ballooning global debt and potential geopolitical powder keg. But thankfully one Foolish expert is revealing 5 of his favorite dividend payers for wealth-creating income whatever the global weather...

But you must act now. This updated report is available for a limited time only, and your copy is 100% free. So don’t miss out!

Simply click here to receive your free copy of "Our Top 5 ASX Dividend Shares to Earn You Money in 2018" right now.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Telstra 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!