3 small cap dividend shares I would buy this month

When it comes to shares with growing dividends, I think the small side of the market is a great place to start looking for them.

At this side of the market there are many companies on the rise which I believe have the potential to grow their dividends meaningfully in the future.

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

Adairs Ltd (ASX: ADH)

I think this home furnishings retailer could be a great option for income investors. Adairs was a strong performer in FY 2018 and posted a 45.4% increase in profits to $30.6 million. This was driven by a strong increase in like for like sales brought about partly by the success of its online business and focus on large format homemaker stores. The strong result allowed the Adairs board to increase its full year dividend by 68% to 13.5 cents, which equates to a fully franked yield of almost 5.8% based on its last close price. Unfortunately, though, its shares went ex-dividend this morning so investors will have to wait another six months for its next pay out.

Money3 Corporation Limited (ASX: MNY)

Money3 also posted a strong result in FY 2018 thanks to a 16.6% lift in its secured auto loan book. This led to the financial services company posting a 10.1% increase in net profit after tax to $32 million and allowed its board to increase its dividend by 68% to 9.5 cents per share. This dividend increase means that its shares now offer a trailing fully franked yield of 4.3%. With management expecting good growth in secured loan receivables again this year, I believe this dividend could continue to grow in FY 2019.

Paragon Care Ltd (ASX: PGC)

I think Paragon Care is another small cap share that could be a good option for income investors. Paragon is a leading provider of integrated services to the health and aged care markets which has been growing at a solid rate over the last few years thanks to a combination of organic growth and a series of earnings accretive acquisitions. This has allowed the board to lift its dividend for three consecutive years, which means that its shares now offer a trailing fully franked 4.2% dividend.

OUR #1 dividend pick to grow your wealth now is revealed for FREE here!

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.

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…


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!