Here are top 2 ASX dividend shares with growing yields

These dividend shares are expected to grow nicely in the coming years…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you are looking to boost your income with some dividend shares, then two listed below could be worth considering.

Both of these dividend shares are expected to provide investors with growing yields in the near term. Here's what you need to know about them:

A smiling woman with a handful of $100 notes, indicating strong dividend payments

Image source: Getty Images

Collins Foods Ltd (ASX: CKF)

The first ASX dividend share to look at is Collins Foods. It is one of the largest operators of KFC restaurants in Australia with over 260 locations. In addition, it has a growing presence in Europe and a smaller but growing network of Taco Bell restaurants across Australia.

Despite its size, management still sees plenty of room for growth in both the Australian and European markets. It has previously highlighted that it has a significant organic growth pipeline and attractive opportunities to reach scale in KFC Netherlands and Taco Bell Australia, while adding to its core KFC Australia footprint.

This could bode well for the company's dividends in the coming years. Morgans certainly appears to believe this will be the case. Its analysts are forecasting fully franked dividends of 28 cents in FY 2023 and 31 cents in FY 2024. Based on the current Collins Foods share price of $10.06, this will mean yields of 2.8% and 3.1%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that income investors might want to look at is Rural Funds. It is an agricultural focused real estate investment trust (REIT) that owns a high quality portfolio of assets across a range of agricultural industries.

These assets, which are leased to major industry players on long term contracts with periodic rental increases, have positioned Rural Funds perfectly to grow its distribution at a solid rate long into the future.

As a result, management plans to increase its dividend by its annual target rate of 4% in FY 2022 and then again in FY 2023. This will mean a dividend of 11.73 cents per share in FY 2022 and then 12.2 cents in FY 2023Based on the current Rural Funds share price of $2.64, this represents yields of 4.4% and 4.6%, respectively.

Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has positions in and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

$50 dollar Australian notes in the back pocket of jeans, representing dividends.
Dividend Investing

3 ASX dividend shares yielding 9% (or more)

These dividend-paying shares offer a great yield and potential for growth.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX dividend shares with yields above 7%

Large yields and potential capital growth. What’s not to love?

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

These buy-rated ASX dividend stocks are forecast to pay 6%+ yields in 2027

Analysts have buy ratings on these high-yield stocks. Let's see what they offer.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Dividend Investing

3 ASX dividend shares to double up on right now

Analysts have buy ratings on these top income stocks.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Passive income investors: This ASX stock has an 8% yield and monthly payouts

The shares climbed higher on Tuesday.

Read more »

Happy woman working on a laptop.
Dividend Investing

A top ASX dividend stock to buy on a pullback

With a strong track record and steady dividends, this stock would be very attractive at cheaper prices.

Read more »

A mother helping her son use a laptop at the family dining table.
Dividend Investing

3 of the safest ASX 200 dividend stocks in Australia

For investors seeking dependable dividends, these ASX 200 shares could provide a strong foundation for long-term income.

Read more »

A couple working on a laptop laugh as they discuss their ASX share portfolio.
Dividend Investing

A dependable ASX dividend stock to buy with $20,000 right now

This ASX blue-chip may not be flashy, but its steady earnings and dividends could make it a dependable income pick.

Read more »