If you’re looking for shares that have dividends that could grow at a solid rate over the coming years, you may want to look beyond the banks and blue chip shares to the small end of the market.
Below are two top small cap shares that could grow their dividends at a strong rate over the coming years. Here’s what you need to know about them:
Integral Diagnostics Ltd (ASX: IDX)
The first ASX dividend share to look at is Integral Diagnostics. It is a medical imaging service provider operating from a total of 72 radiology clinics.
It has been a strong performer so far in FY 2021. For example, during the first half, the company reported a 29.5% increase in revenue to $170.7 million and a 61.1% jump in net profit after tax to $23.2 million.
Pleasingly, Goldman Sachs believes it is well-placed to continue this positive form. As a result, it has slapped a buy rating and $5.50 price target on its shares.
Goldman is forecasting fully franked dividends of 11.4 cents per share and 13.9 cents per share over the next two years. This implies yields of 2.4% and 2.9%, respectively.
Another ASX dividend share to consider is People Infrastructure. It is a leading workforce management company which has been experiencing strong demand for its innovative solutions to workforce challenges.
This led to the company delivering a 3.1% increase in first half revenue to $201 million and a 51.5% increase in normalised net profit to $14.8 million.
Morgans is positive on the company and currently has an add rating and $4.22 price target on its shares. It is also forecasting fully franked dividends of 13 cents per share in FY 2021 and FY 2022. Based on the latest People Infrastructure share price, this represents attractive 3.1% yields.