When it comes to dividends, in my opinion the Australian share market is one of the more generous markets in the investment world.
Whilst there are countless options for income investors to choose from, below are five of my favourite dividend shares on the ASX at present.
Collins Foods Ltd (ASX: CKF)
At present the KFC operator's shares provide a trailing fully franked 2.8% dividend. Whilst this isn't the biggest on the market by any means, I believe it has significant growth potential due to the company's aggressive expansion plans at home and abroad.
Dicker Data Ltd (ASX: DDR)
This year this wholesale computer hardware company expects to pay a fully franked 16.4 cents per share dividend. Following a sharp drop in its share price today, Dicker Data's shares now provide investors with a full-year fully franked 6.7% dividend.
Greencross Limited (ASX: GXL)
At the current share price this integrated pet care company offers investors a trailing fully franked 3.2% dividend. Thanks to the strong demand for veterinary services and the highly fragmented market, I believe Greencross can grow both its earnings and dividend at an above-average rate over the next few years.
Japara Healthcare Ltd (ASX: JHC)
With aged care demand expected to rise strongly over the next decade due to Australia's ageing population, I believe Japara is in a great position to grow its dividend at a solid rate. At present Japara's shares provide investors with a trailing 5.7% dividend.
Mantra Group Ltd (ASX: MTR)
This leading accommodation provider's shares offer investors a trailing fully franked 3.5% dividend. Like many of the shares above, I believe Mantra has the potential to grow this significantly in the future. Thanks to the tourism boom I expect the company to experience growing demand for its rooms for the foreseeable future.
