MENU

3 top shares with fast-growing dividends

Although the shares listed below don’t necessarily have the biggest dividend yields on the market, I believe that there is significant room for growth over the next decade that could make them dividend stars of the future.

Because of this, I think it could be worth considering a long-term buy and hold investment in them. Here’s why I like these shares:

Collins Foods Ltd (ASX: CKF)

Collins Foods is one of the largest franchisees of KFC restaurants and positioned well for long-term growth thanks to its expansion into an underpenetrated European market. While it is early days and I have yet to gauge how well its European businesses are performing, I’m optimistic that the tried and tested formula will work well in this market. If this proves to be the case, it could allow Collins Foods to achieve above-average earnings and dividend growth for many years to come. Collins Foods’ shares offer investors a trailing fully franked 3.1% dividend at present.

Helloworld Travel Ltd (ASX: HLO)

There are several quality options in the travel sector, but one of my favourites would have to be Helloworld. I thought its first-half result was amongst the best on the market when it delivered a 39.2% increase in net profit before tax to $26 million. This strong result was driven largely by the growing demand for its integrated service offering. With tourism into and out of Australia continuing to grow strongly, I believe Helloworld Travel can continue to deliver solid profit and dividend growth for the foreseeable future. At present Helloworld’s shares offer a trailing fully franked 3.2% dividend.

Macquarie Telecom Group Ltd (ASX: MAQ)

While Macquarie Telecom’s shares may only offer investors a trailing fully franked 2.5% dividend currently, I believe the cloud computing boom could put the telco company in a position to grow its dividend strongly over the coming years. Its Cloud Services segment delivered a 30% increase in half-year net profit in February, making it the company’s biggest segment now. With the cloud boom showing no signs of slowing, I expect more of the same in the second-half and beyond.

DON'T MISS: Our #1 dividend pick to buy in JUNE 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 owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Helloworld 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!