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3 fast-growing dividends I would snap up today

Rather than searching for a share with an enormous dividend yield, I believe sometimes it pays to find shares with the ability to grow their dividends significantly in the future.

Three shares which I believe can do exactly this are listed below. Here’s why I like them:

Altium Limited (ASX: ALU)

Thanks to the rise of the Internet of Things, this printed circuit board design software provider expects to almost double its revenue to US$200 million by FY 2020. I believe that as it scales it will become more efficient and enjoy higher margins. This should allow it grow earnings and its dividend at an even quicker rate. At present Altium provides investors with a 2.2% dividend, but I believe this could more than double over the next few years.

Collins Foods Ltd (ASX: CKF)

This KFC operator could be in a position to grow its dividend at a strong rate over the next decade thanks to its expansion both at home and internationally. After all, Collins Foods plans to add up to 19 new restaurants to its network each year for at least the next five years. At present its shares provide a trailing fully franked 3% dividend. As well as gaining a boost from its earnings growth, the company’s dividend could increase at an even quicker rate if the company decides to increase its reasonably low payout ratio.

InvoCare Limited (ASX: IVC)

InvoCare is the leader in the Australian funerals industry with around a third of the market. With the death rate expected to slowly rise over the next two decades, I believe InvoCare is in a strong position to grow earnings at a solid and predictable rate. This should allow the company to continue to grow its dividend for a long time to come. Currently its shares provide a trailing fully franked 2.9% dividend.

Hungry for even more dividend ideas? Then check out these five dividend shares which could be great additions today.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Altium. 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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