4 dividend shares I would buy this May

The Premier Investments Limited (ASX:PMV) dividend is one of four which I like this month. Here's why…

| More on:
a woman

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

Thankfully for Australian investors, the local share market is home to a great number of quality dividend shares to invest in.

Four of my favourites at the moment are listed below. Here's why I think they are worth considering this month:

Collins Foods Ltd (ASX: CKF)

Although the shares of this operator of KFC restaurants only provide a trailing fully franked 3% dividend, I believe it has significant growth ahead. As the company opens more and more restaurants in European markets, I expect its earnings growth to accelerate. This should allow the company to keep increasing its dividend.

Premier Investments Limited (ASX: PMV)

Like Collins Food, I believe Premier Investments is another company which has strong growth prospects thanks to its international expansion. Most notably through its Smiggle brand. This high-margin retail business has been growing like wildfire and shows no signs of slowing. At present Premier Investments provides a trailing 3.9% dividend.

Sigma Pharmaceutical Limited (ASX: SIP)

At present the company behind pharmacy chain brands including Chemist King and Amcal provides a trailing fully franked 4.4% dividend. I think this is a great dividend with plenty of room to grow in the next few years. Especially with the company's online store in China growing ahead of expectations and management extending its share buy-back to a further 10% of shares on issue.

Suncorp Group Ltd (ASX: SUN)

At the current share price this leading insurer provides a generous trailing fully franked 5.1% dividend. I've been very impressed with the early success of its One Suncorp strategy and believe it has put the company in a strong position to grow earnings and its dividend at a solid rate over the next few years. Because of this I think it could prove to be a great buy and hold investment.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Premier Investments Limited. Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »