MENU

4 fast-growing dividends for income investors

One concern that investors have about investing in bank shares such as Australia and New Zealand Banking Group (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA) is that the new bank levy may mean a cut to their dividends.

So for investors that want to avoid the banks this year, here are four fast-growing dividend shares to consider snapping up today:

Amaysim Australia Ltd (ASX: AYS)

This fast-growing telco company’s shares currently provide a trailing partially franked 4.5% dividend. Thanks to its expansion into offering low-cost NBN plans, I believe Amaysim is well-positioned to grow both its earnings and this dividend at a strong rate over the next few years.

Baby Bunting Group Ltd (ASX: BBN)

While this baby products retailer’s trailing 4.3% fully franked dividend is unlikely to grow this year, I believe that in the following years it has the potential to grow strongly. This year the closure of competitors and their subsequent clearance sales is expected to weigh on its performance and result in flat earnings. But when this short-term headwind passes, Baby Bunting will be free to gain even more market share.

Blackmores Limited (ASX: BKL)

Another company which I think has the potential to grow strongly over the coming years is Blackmores. The health supplements company may have been forced to cut its dividend in FY 2017, but I expect it will return to growth again this year. While a trailing fully franked 1.6% dividend may not be appetising to income investors, in time I expect the yield on cost to widen considerably.

Helloworld Ltd (ASX: HLO)

This travel company’s shares currently provide a trailing fully franked 2.8% dividend. Like Blackmores, this isn’t the biggest yield on the market at the moment. But in time I expect its dividend will grow strongly as demand for its integrated service offering continues to develop and grow. This year the company expects earnings to increase by upwards of 21% year-on-year.

Here's a fifth dividend share not to be missed out on this year.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool's dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia owns shares of Helloworld 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.