While a big yield is good, I think dividends with the potential to grow meaningfully in the future are even better.
Which is why I think it could be worth considering snapping up these three dividend shares this week. Here's why:
Amaysim Australia Ltd (ASX: AYS)
As well as having a strong core business I think this growing telco company is attractive due to its recent expansion into offering home energy plans and low-cost Amaysim-branded NBN plans. I remain confident that these recent ventures have the potential to provide the company with significant earnings growth if it can successfully cross-sell the services to its existing customer base. Ultimately, I expect this to put Amaysim in a position to grow its partially franked trailing 4.3% dividend at a solid rate over the next few years.
Collins Foods Ltd (ASX: CKF)
A weaker-than-expected half-year result has weighed heavily on this KFC operator's shares over the last few months. However, I don't think the result was as bad as the market reaction made out and was largely due to some significant one-off charges. In light of this, I think Collins Foods would be worth another look now. Especially with the company rapidly expanding its presence in an under-penetrated European market. Its shares offer a trailing fully franked 3.2% dividend at the current share price.
Premier Investments Limited (ASX: PMV)
I think this retail conglomerate could be a great option for income investors due to its key Smiggle and Peter Alexander businesses. These two stars will soon make up the majority of the company's earnings and each have a significant runway for growth. This is especially the case for its Smiggle brand, with management expecting the brand to achieve annual sales in excess of $450 million by FY 2020. This is almost double the sales the brand generated in FY 2017. Premier Investments' shares provide a trailing fully franked 3.6% dividend currently.
