3 small caps ASX dividend shares offering big income

There are a few small cap ASX dividend shares that offer big income to boost income, including Propel Funeral Partners Ltd (ASX:PFP).

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Some smaller ASX dividend shares also have high dividend yields, not just the big blue chips.

Businesses that are smaller may have the ability to generate decent capital and profit growth, as well as paying high dividend payouts.

These three ASX dividend shares are small but have higher yields:

Propel Funeral Partners Ltd (ASX: PFP)

For FY21, Propel Funeral Partners has a grossed-up dividend yield of 5.5% according to Commsec.

Propel is the second largest funeral operator in Australia and New Zealand. The company is aiming to benefit from the ageing population demographics to generate long-term organic growth. It has also been making acquisitions to capture more market share.

The business managed to generate earnings growth in the FY21 half-year result, despite all of the impacts of COVID-19.

Revenue rose 3.5% to $59 million, operating net profit after tax (NPAT) rose by 7.6% to $8.4 million, whilst operating earnings per share (EPS) went up 7% to 8.5 cents. This funded a 50% increase of the dividend to 6 cents per share.

The ASX dividend share is forecasting shorter-term growth because it’s expecting death volumes to revert to long-term trends.  

Accent Group Ltd (ASX: AX1)

Accent is expected to pay a grossed-up dividend yield of 7.5% in FY21, according to Commsec.

The shoe business is planning to keep opening more stores to expand its reach and grow its market share. There continues to be a high level of demand for quality shares, which is why the company saw NPAT growth of 57.3% to $52.8 million.

Total sales only went up 6.6% to $541.3 million, but online sales rose 110% to $108.1 million.

The ASX dividend share’s management team want to keep growing its online sales and investing in innovation, with a long-term objective of at least 10% compound EPS growth.

Growing the dividend is one of the key goals of the business. The FY21 interim dividend was increased by 52.4% to 8 cents per share.

In the first eight weeks of the second half of FY21, like for likes sales went up 10.7%.

Pengana Capital Group Ltd (ASX: PCG)

Pengana is a fund manager that’s backed by investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

It has a trailing grossed-up dividend yield of 7.8% after a 25% increase of its interim dividend in the half-year result.

Pengana has steadily been growing its funds under management (FUM) in recent months. Over the month of February 2021, FUM grew by another $45 million to $3.63 billion.

The ASX dividend share managed to grow its underlying profit before tax went up 17.1% year on year and funds under management grew by 15% in six months to 31 December 2020.

Its funds have been generating outperformance and it continues to launch new funds which could generate more earnings over time.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Accent Group and Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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