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3 shares with big dividends that keep growing

It’s getting harder to find reliable income with some big dividend payers such as Telstra Corporation Ltd (ASX: TLS) and G8 Education Ltd (ASX: GEM) saying they will reduce future dividends.

However, there are a few large dividend payers out there that are not only maintaining their dividends but actually increasing over time.

Here are three dividend payers with yields over 8% that are growing their dividends:

WAM Capital Limited (ASX: WAM)

WAM Capital is one of the largest listed investment companies (LIC) in Australia. It’s run by Geoff Wilson and his investment team at Wilson Asset Management.

This LIC focuses on undervalued growth companies that have the potential to beat the market. It also tends to keep a good percentage of its portfolio as cash for protection and opportunities.

WAM Capital has grown its dividend every year since the GFC and currently has a grossed-up dividend yield of 8.68%.

Mortgage Choice Limited (ASX: MOC)

Mortgage Choice is one of the largest mortgage brokers in Australia with a large physical network. I like Mortgage Choice because it’s closely aligned with rise of the property market without the capital risk that the banks have.

Its recent results weren’t incredible, but it delivered a good increase in net profit and the dividend.

Mortgage Choice has grown or maintained its dividend every year since the GFC and currently has a grossed-up dividend yield of 10.46%.

Clime Capital Limited (ASX: CAM)

Clime is one of the smaller LICs on the ASX. It may be small, but it has a big dividend. It currently has a grossed-up dividend yield of 8.09% and has grown it every year since 2012.

I like Clime’s approach because it has the flexibility to invest in any business it likes on the ASX.

It recently changed its strategy to include some overseas investments in its portfolio as well.

Foolish takeaway

All three have impressive dividends that are growing. I’m a little wary of Mortgage Choice because the debt and income ratios of Australian property owners could be getting a bit extreme.

However, both Clime and WAM Capital could make strong income additions to a dividend portfolio.

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The Motley Fool Australia has no position in any of the stocks mentioned. 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.