The great thing about growth shares is that they grow at a fast rate, which is of course why they're called growth shares.
When one of these growth shares pays a dividend it's normal for the yield to be lower than average because of the higher price/earnings ratio and the lower dividend payout ratio.
But, as the 'growth share' grows at a fast rate it is able to increase the dividend at a fast rate too, assuming the dividend payout ratio is kept the same. After a few years that growth share could be paying a good sum of money each dividend after double digit increases to the dividend during that time.
Here are three shares growing their dividends at a fast pace:
Bapcor Ltd (ASX: BAP)
Bapcor is Australia and New Zealand's leading auto parts company. The company is growing at a very fast rate due to smart acquisitions it has made to boost the business in Australia and in New Zealand. Synergies are being recognised which are boosting margins.
The business is also experiencing good organic growth and expanding its networks, which is adding further revenue to the growth engine.
In its half-year report for the six months ending 31 December 2017, Bapcor increased the dividend by 27%.
Altium Limited (ASX: ALU)
Altium is one of the world's leading electronic PCB software companies, giving engineers the tools to design the machinery and products of the future. Some of its top clients include NASA, BMW, John Deere and Lenovo.
The company is predicting that it will keep experiencing strong growth over the coming years as more and more products require greater technological input.
Altium grew its dividend by 18% in its recent report.
MNF Group Ltd (ASX: MNF)
MNF is the owner and operator of Australia's largest voice over internet protocol network, according to the company.
Businesses are always looking to save on costs and offer a better service, so MNF's offering has a lot of merit for companies in Australia and globally.
MNF increased its dividend by 14.7% in its latest report.
Foolish takeaway
At the current prices it's hard to say that Altium would be a short-term good value buy, but both MNF and Bapcor could make good medium-term buys at the current prices.
