The Motley Fool

3 small cap dividend stars for income investors

When it comes to shares with growing dividends, I think the small end of the market is a great place to look.

In this area of the market there are a number of companies on the rise with the potential to grow their dividends significantly in the future.

Three which I think are worth a closer look are listed below. Here’s why I like them:

Money3 Corporation Limited (ASX: MNY)

Money3 is a secured auto loans company on the rise. Although the company has been growing its market share at a strong rate, it still only has a 2% share of the secured second-hand automotive finance market. If the company continues its strong form and keeps winning more and more share of the market, then I suspect its earnings and dividend growth will continue to remain strong. Money3’s shares currently offer a trailing fully franked 4.3% dividend.

Paragon Care Ltd. (ASX: PGC)

Paragon is a provider of integrated services to Australia’s health and aged care markets. I think that these two markets have exceptionally strong organic growth potential over the next couple of decades, which could make Paragon worth considering. Especially given the opportunities it has to accelerate its growth through acquisitions. This could put Paragon in a position to grow its dividend meaningfully over the next few years. At present Paragon Care’s shares provide a trailing fully franked 4.1% dividend.

Shriro Holdings Ltd (ASX: SHM)

Shriro is a kitchen appliance and consumer products company which has been growing its bottom line and dividend at a solid rate over the last few years. Despite this, its shares continue to trade at a lowly 9x trailing earnings. The good news for income investors is that this means that its shares provide a trailing fully franked 7.8% dividend at this level. If the company’s international expansion goes well, I believe this dividend could continue to grow for many years to come.

Here's a fourth dividend share that is on my must buy list right now.

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 has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Paragon Care 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.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now