Although big blue-chip shares such as Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) are well-known for being generous dividend payers, I'm not overly confident that either of them will be in a position to grow their dividends for some time.
So if you're looking for strong dividend growth, I would suggest you take a look at these small-cap dividend shares.
Dicker Data Ltd (ASX: DDR)
It's not just Nextdc Ltd (ASX: NXT) that looks set to be a big winner from the shift to the cloud, this wholesale computer hardware company recently launched a new Enterprise Data business unit. The unit is focused on the ever-growing digital transformation and internet of things opportunity for resellers in the mid-market and enterprise sectors. I expect these new revenue streams will give its top line a big boost in FY 2018 and FY 2019, allowing Dicker Data to continue to grow its dividend. This year the company plans to pay shareholders a fully franked 16.4 cents per share dividend in quarterly instalments. This equates to an annual yield of 6.5%.
Money3 Corporation Limited (ASX: MNY)
Thanks to the explosive growth of its secured automotive loans business, this leading credit provider recently delivered a 44.5% increase in full-year net profit after tax to $29.1 million. This strong growth allowed management to increase its full-year dividend once again, meaning its shares now provide investors with a trailing fully franked 3.9% dividend. I expect more of the same in FY 2018, which I think makes Money3 a great option for income investors.
