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3 fast-growing dividend shares to buy instead of the banks

Telstra Corporation Ltd (ASX: TLS) and the banks are amongst the most popular dividend shares on the local share market.

And while they do offer generous dividend yields, I think it is unlikely that their dividends will grow much over the coming years.

So if you’re on the lookout for shares with the potential to grow their dividends strongly in the future, you might want to check out the three listed below.

Helloworld Travel Ltd (ASX: HLO)

This morning this integrated travel company advised that it is on course to grow its earnings in the range of 16.5% and 23% in FY 2019 following a solid first quarter performance. Despite this strong profit growth the company’s shares are trading at just 20x earnings and offer a trailing fully franked 3.2% dividend. I expect the board to increase this dividend in line with its earnings growth this year.

Kogan.com Ltd (ASX: KGN)

While I’m not quite ready to invest in Kogan.com’s shares, there’s no denying that they look incredibly attractive after their fall from grace. At present the ecommerce company’s shares are changing hands at 18x earnings and offer a trailing fully franked 4.8% dividend. The big question, though, is whether the company will grow its profits this year after a disappointing start to FY 2019. I’m optimistic that it will, but I would suggest investors wait to see if management provides an update at its upcoming AGM.

Super Retail Group Ltd (ASX: SUL)

Another top share which I believe is trading at an attractive level is Super Retail. The company behind brands including Super Cheap Auto and Macpac has seen its share price crash lower in recent weeks following news that its CEO will be stepping down. While this is disappointing, I think its shares have been severely oversold. At present they are priced at just 10x earnings and offer a trailing fully franked 6.6% dividend. I think this offers a compelling risk/reward, especially considering Super Retail recently revealed that all its brands have delivered solid same stores sales growth so far in FY 2019.

And here is a fourth dividend share that looks set to grow its dividend at a strong rate over the coming years.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Helloworld Limited and Super Retail Group Limited. The Motley Fool Australia has recommended Kogan.com ltd. 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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