3 fast-growing dividends for income investors to buy

Whilst a big dividend yield is good, I think dividends with the potential to grow significantly in the future are even better.

Three dividend shares which I think have strong long-term growth prospects are listed below. Here’s why I would consider buying them today:

Baby Bunting Group Ltd (ASX: BBN)

Although this baby products retailer’s dividend is unlikely to grow in FY 2018, I believe it will accelerate again from FY 2019 onwards. This is because at present the company is expecting to report flat earnings in FY 2018 due to the negative impact of clearance sales from closing competitors. But when this short-term headwinds subsides, Baby Bunting will be in a stronger position and able to grab further market share. At present its shares provide a trailing fully franked 4.7% dividend.

Collins Foods Ltd (ASX: CKF)

This KFC operator’s shares have fallen 16% from their 52-week high following the release of a weaker-than-expected half-year result late last year. I don’t think the result was as bad as the market reaction has made it out to be, especially given that it was largely due to the impact of some significant one-off charges. In light of this and due to its international expansion plans in an under-penetrated European market, I think Collins Foods would be worth another look now. Its shares offer investors a trailing fully franked 3.2% dividend at the current share price.

Premier Investments Limited (ASX: PMV)

Whilst it may be worth holding off an investment until the release of its upcoming half-year results, if they come in as expected then I think this retail conglomerate could be a great option. At present Premier Investments’ shares provide a trailing fully franked 3.9% dividend, but I believe the growth of its key Smiggle and Peter Alexander brands will allow this to grow significantly in the future. The Smiggle brand, for example, is expected to achieve annual sales in excess of $450 million by FY 2020, almost double the sales the brand generated in FY 2017.

Finally, this fourth dividend star could be the best out there on the market right now in my opinion.

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 owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of and has recommended Premier Investments 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!