3 growing dividend shares I would buy today

The Premier Investments Limited (ASX:PMV) dividend is one of three that I would snap up today…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

While I think that the Telstra Corporation Ltd (ASX: TLS) and Westpac Banking Corp (ASX: WBC) dividends are great options for investors, especially after recent declines, I'll be the first to admit that I don't expect either company to be growing their dividends much over the next few years.

So investors that are on the lookout for dividends with strong growth potential may want to skip Telstra and Westpac and consider one of these dividend shares instead:

Collins Foods Ltd (ASX: CKF)

At present this KFC restaurant operator's shares provide investors with a trailing fully franked 3.2% dividend. Whilst this isn't the biggest yield available on the local share market, I believe that it has strong growth potential thanks to the company's expansion plans. Collins Foods has its eye firmly fixed on the underpenetrated European market. Given the size of the opportunity, if the company expands successfully then I believe it could lead to above-average earnings and dividend growth for the next decade.

Money3 Corporation Limited (ASX: MNY)

This financial services company's shares currently offer investors a trailing fully franked 4.2% dividend. Thanks to the early success of its secured auto loans business, I think this dividend could increase significantly in the future if the company can continue to win market share. At the last count, Money3 had grown its share of the secured second-hand automotive finance market to 2%. I believe this provides the company with a huge runway for growth.

Premier Investments Limited (ASX: PMV)

This retail conglomerate's shares may be close to an all-time high, but they still provide a generous trailing fully franked 3.6% dividend. Due largely to the runaway success of the company's Smiggle brand and its ambitious international expansion plans, I believe Premier Investments can grow this dividend meaningfully over the next decade. Especially with the company's e-commerce business performing ahead of expectations. Last month the company advised that total online sales grew by 71.2% during the first-half to $56 million. This puts the company on course to achieve its $100 million online sales target during the 2018 calendar year, two years ahead of schedule.

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited and Telstra 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 Scott Phillips.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »