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3 under the radar dividend shares to buy this month

Whether directly through their own investments or indirectly through their superannuation, the majority of Australian investors will have exposure to blue chip dividend shares such as Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES).

Three under the radar dividend shares that I suspect only a small number of investors have exposure to are listed below.

Here’s why I think all investors ought to consider them:

Baby Bunting Group Ltd (ASX: BBN)

In the short term I think this baby products retailer may struggle for growth due to the headwinds it is facing from closing competitors. But those willing to play the long game are likely to be rewarded handsomely as its margins expand and the vacated market share is gobbled up. So with its shares trading close to a 52-week low and providing a trailing fully franked 5.6% dividend, I think now could be an opportune time for patient investors to make a move.

Money3 Corporation Limited (ASX: MNY)

Many investors had doubts that Money3 would be able to successfully shift away from payday loans, but I think it is fair to say that the company has proven its doubters wrong. Thanks to the success of its secured auto loans business, Money3 achieved a 12.3% increase in half-year net profit after tax to $15.5 million in February. I believe the company still has a significant runway for growth considering its share of the second-hand automotive finance market stands at just 2%. This could put the company in a position to grow its dividend strongly over the next few years. At present Money3’s shares offer investors a trailing fully franked 4.2% dividend.

National Storage REIT (ASX: NSR)

National Storage is the largest self-storage operator in Australia with 86 centres nationwide. Demand for its storage facilities has been growing strongly over the last few years, leading to high occupancy levels and solid profit and distribution growth. The good news is that management appears confident that this growth can continue for the foreseeable future thanks to its strong development pipeline of 11 new developments and a number of new expansion projects. Its FY 2018 distribution guidance is between 9.6 and 10 cents per share. The middle of this range equates to a yield of 6.1% at the current share price.

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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 Telstra Limited and Wesfarmers Limited. The Motley Fool Australia has recommended National Storage REIT. 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 Scott Phillips.