If you're searching for growing dividends, then you might want to look at the ASX shares listed below.
They have been growing their dividends at a decent rate and look well-positioned to continue doing so in the years to come. Here's what you need to know about these ASX dividend shares:
Coles Group Ltd (ASX: COL)
Coles is of course one of Australia's big-two supermarket operators. In addition to this, it operates other businesses such as flybuys and Liquorland.
Thanks to its defensive qualities and strong market position, the company has been growing strongly during the pandemic. And while its growth could turn negative in the immediate term due to heightened sales in the prior corresponding period, its sales are still growing nicely on a two-year basis.
Furthermore, the company has been tipped to resume its growth in FY 2022, leading to another dividend increase.
For example, Goldman Sachs is forecasting dividends per share of 62 cents in FY 2021 and 67 cents in FY 2022. Based on the current Coles share price, this will mean fully franked yields of 3.7% and 4%, respectively, over the next two years.
Rural Funds Group (ASX: RFF)
Another ASX share that has been growing its dividend at a solid rate in recent years is Rural Funds. It is an agricultural-focused property company with a diverse portfolio of assets. This includes almond and macadamia orchards, premium vineyards, water entitlements, cattle, and cropping assets.
The company's properties are leased to high quality tenants on very long term agreements. And with rental increases built into these agreements, the company appears well-placed to grow its distribution by its target of 4% per annum.
Management has provided distribution guidance for 11.28 cents per share in FY 2021 and then 11.73 cents per share in FY 2022. This implies yields of 4.4% and 4.6%, respectively.
