It isn't just the big four banks and Telstra Corporation Ltd (ASX: TLS) that reward their respective shareholders with generous dividends.
The three small-cap shares listed below also provide investors with above-average dividends. But perhaps best of all, have ample room to grow them significantly in the future.
Here's why I think they are worth a closer look:
Baby Bunting Group Ltd (ASX: BBN)
With its shares down by over 25% year-to-date, this baby products retailer's shares now provide investors with a trailing fully franked 4% dividend. Although there are concerns about the impact that an Amazon launch could have on its business, management remains confident that it is positioned for growth due to the investments it has made in technology, digital, and its supply chain. In FY 2018 the company expects to deliver EBITDA growth of up to 18%.
Money3 Corporation Limited (ASX: MNY)
Thanks to the strong growth that its secured automotive loans business is delivering, this credit provider recently posted a 44.5% increase in full-year net profit after tax to $29.1 million. This strong performance allowed Money3 to increase its fully franked full-year dividend to 5.6 cents per share, which equates to a 3.8% yield at the current share price.
Think Childcare Ltd (ASX: TNK)
One thing I like in particular about the childcare centre operator is the pipeline of centres it has waiting to be acquired. Rather than going out to approach random centres, the company has an incubator program which allows it to progressively acquire established centres at a fair price. I believe this puts it in a great position to deliver solid earnings growth over the next few years, allowing it to increase its generous dividend even further. At present it provides investors with a trailing fully franked 4.8% dividend.
