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Why I would buy these growing dividend shares in November


This week both Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) released their full year results and announced final dividends that were in line with the prior corresponding period.

I suspect that this may be the case again in FY 2019 due to the difficult trading conditions that the banks are facing.

So if you’re on the lookout for dividends with strong growth potential, then the three shares below could be the ones to consider. Here’s why:

Collins Foods Ltd (ASX: CKF)

Although this operator of KFC and Taco Bell restaurants doesn’t offer the most generous yield on the local market, I believe the international expansion of its KFC network and the roll out of Taco Bell in Australia could lead to above-average earnings and dividend growth over the next decade. Collins Foods shares currently offer a trailing fully franked 2.6% yield.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust which owns a total of 44 properties across six different sectors including wine, cattle, and almond production. These properties have a weighted average lease expiry of 12.3 years, which provides income stability and long-term rental growth through indexation mechanisms. In FY 2019 the Rural Funds board intends to lift its distribution to 10.43 cents per unit, equating to a forward yield of 4.9%.

Super Retail Group Ltd (ASX: SUL)

This retailer’s shares currently offer a generous trailing fully franked 6.7% dividend. The good news is that I believe this dividend can grow further thanks to the positive start it has made in FY 2019. Last month Super Retail advised that all its businesses had delivered solid like for likes sales growth year to date. The Macpac business was the star of the show with like for like sales growing 8.4% and total sales climbing 17.6% on the prior corresponding period.

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Returns As of 6th October 2020

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of National Australia Bank Limited and Super Retail Group Limited. The Motley Fool Australia has recommended Collins Foods 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.

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