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Forget National Australia Bank Ltd and buy these dividend shares

While the banks, and National Australia Bank Ltd. (ASX: NAB) in particular, provide some of the biggest dividend yields on the Australian share market, I think it is unlikely that these dividends will grow meaningfully over the next few years.

In light of this, investors in search of growing dividends might want to consider these three shares:

Amaysim Australia Ltd (ASX: AYS)

Unlike rival Telstra Corporation Ltd (ASX: TLS), I think that this growing telco company has the potential to grow its dividend strongly over the next few years. This is due to the continued growth of its mobile business and also its expansion into offering energy plans and low-cost Amaysim-branded NBN plans. At present the company’s shares provide investors with a partially franked trailing 4.6% dividend.

Greencross Limited (ASX: GXL)

I’m a big fan of this integrated pet care company and believe it would be a great long-term investment. I’ve been impressed at the early success of its in-store clinic roll out and expect it to ultimately provide a strong return on investment. In-store clinics are currently found in 17% of its retail stores, but management is targeting over 60% in the future. This could help the company grow its dividend which currently provides a trailing fully franked 3% yield.

WAM Capital Limited (ASX: WAM)

This listed investment company has managed to increase its dividend each year for no less than eight years in a row. And thanks to the strong performance of its funds again this year I expect that WAM Capital will be in a position to make it nine years this year. At present its shares provide a trailing fully franked 6.1% dividend.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Greencross Limited and Telstra Limited. The Motley Fool Australia owns shares of National Australia Bank 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.

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