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3 fast-growing dividend shares I would buy today

One thing that I like to look at when assessing income shares is a company’s ability to grow its dividend in the future.

After all, a company that can grow its dividend at an above-average rate can turn an average yield into a fantastic yield in just a few years.

Three shares which I believe could be capable of achieving this are listed below:

Amaysim Australia Ltd (ASX: AYS)

While I’m not especially bullish on the telco industry as a whole, I do think that Amaysim is better positioned than most to grow at a solid rate in the coming years. This is due to its diversification away from just offering mobile phone plans. Amaysim now provides low-cost unlimited Amaysim-branded NBN plans and energy plans through its Click Energy business. I believe this puts it in a great position to continue growing its dividend which currently provides investors with a trailing partially franked 4.4% yield.

Baby Bunting Group Ltd (ASX: BBN)

Although I’m a touch doubtful that this baby product retailer will be able to increase its dividend this year, I believe once the short-term headwinds it faces ease it will resume its strong growth. Baby Bunting has been a victim of its own success this year and has been impacted by clearance sales from closing competitors. But once these clearance sales are out of the way, I expect Baby Bunting will be free to gain even more market share and deliver solid earnings and dividend growth. At present its shares provide a trailing fully franked 4.6% dividend.

Helloworld Ltd (ASX: HLO)

At present this travel company’s shares only offer investors a trailing fully franked 2.9% dividend. But with management confident that demand for its integrated service offering will continue to develop and grow, I believe Helloworld has the potential to become a dividend star in the future. In FY 2018 EBITDA is forecast to increase upwards of 21% year-on-year and I expect its dividend will grow at a similarly strong rate.

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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 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.

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