Due to recent declines in their respective share prices, I think the dividends on offer from Telstra Corporation Ltd (ASX: TLS) and National Australia Bank Ltd. (ASX: NAB) are hard to say no to right now.
But given their outlooks, I wouldn't expect a dividend increase any time soon.
Whereas the four small cap dividend shares listed below could be poised to increase theirs significantly in my opinion.
Here's why I think they are worth a closer look:
Codan Limited (ASX: CDA)
This radio communications, metal detection, and mining technology company's shares currently provide investors with a trailing fully franked 4.5% dividend. I've been impressed with the company's performance over the last 12 months and expect it to build on this thanks to new product releases and a global licensing agreement with U.S. giant Caterpillar for its Minetec business.
Dicker Data Ltd (ASX: DDR)
In FY 2018 this wholesale computer hardware and software distributor expects to raise its annual dividend to a fully franked 18 cents per share. Based on its current share price, this equates to a yield of 6.3%. I feel this is a very attractive yield in this low interest environment. This yield, its positive outlook, and robust business model could make Dicker Data a great option for investors.
Money3 Corporation Limited (ASX: MNY)
Money3 would be up there as one of my favourite small cap shares. While its shares are certainly not the bargain buy they were a year ago, I still see a lot of value in them. Especially given the early success that its secured auto loans business is having. The good news is that the company still only has a 2% share of the secured second-hand automotive finance market, which could mean plenty more growth ahead over the coming years. The company's shares provide a trailing fully franked 4.3% dividend at present.
Shriro Holdings Ltd (ASX: SHM)
Shriro is a kitchen appliance and consumer products company which I think could be destined for a bright future if its US expansion plans are a success. At just 9x trailing earnings and offering a trailing fully franked 8% dividend, I think an investment in its shares provide a compelling risk/reward.
