If you're interested in adding some growing dividend shares to your portfolio, then you might want to look at the ones listed below.
Both have long runways for growth and are sharing their profits with shareholders each year. Here's what you need to know about them:
Carsales.Com Ltd (ASX: CAR)
The first dividend share to look at is this auto listings company. It could be a dividend share to consider due to its dominant auto listings business in the ANZ market and its growing international operations.
The latter will soon be bolstered by the addition of Trader Interactive. Carsales recently announced an agreement to acquire the US based digital marketing solutions and services provider to the commercial truck, recreational vehicle, powersports, and equipment industries.
Morgan Stanley is positive on the company and is expecting it to grow its dividend at a solid rate in the coming years. It is forecasting dividends of 62 cents per share in FY 2021 and then 71.6 cents per share in FY 2022. This represents fully franked dividend yields of 3.2% and 3.7%, respectively.
The broker currently has an outperform rating and $23.00 price target on its shares. This compares to the latest Carsales share price of $19.42.
Integral Diagnostics Ltd (ASX: IDX)
Another ASX dividend share to look at is Integral Diagnostics. It is a medical imaging service provider that operates from a total of 72 radiology clinics across the country.
Integral Diagnostics has been a solid performer in FY 2021 thanks to strong demand for its services. For example, during the first half it reported a 29.5% increase in revenue to $170.7 million and a sizeable 61.1% jump in net profit after tax to $23.2 million.
And while its shares don't provide the biggest yield you'll find on the market, it will improve over the coming years. Goldman Sachs is forecasting dividends per share of 11 cents in FY 2021, 14 cents in FY 2022, and 15 cents in FY 2023. Based on the latest Integral Diagnostics share price of $4.99, this will mean fully franked yields of 2.2%, 2.8%, and 3%, respectively.
The broker has a buy rating and $5.50 price target on its shares. Goldman believes it is a well-run business in an attractive industry, with a relatively secure volume profile of mid/high single digit growth. It also notes that it has a clear path for further growth through brownfield and M&A activities.
