3 fast-growing dividend shares I would buy today

The Altium Limited (ASX:ALU) dividend is one of three which I think could grow significantly in the future…

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Whilst a big dividend yield is undoubtedly great, I think dividends which have the potential to grow significantly in the future are even better.

Three shares which I believe are positioned to do just this are listed below. Here's why I think income investors should consider them:

Altium Limited (ASX: ALU)

In FY 2017 Altium saw its revenue come in 18% higher year-on-year at US$110.9 million. When announcing the results, management reiterated its belief that it is on course to almost double its revenue to US$200 million by FY 2020. As the software company scales, I expect profits and its dividend to grow at a much quicker rate to its top line. This could potentially lead to the more than doubling of its dividend between now and the end of FY 2020.

Collins Foods Ltd (ASX: CKF)

Due to this KFC restaurant operator's bold expansion plans both at home and overseas, I believe Collins Foods will deliver above-average earnings growth in the long-term. I expect this will allow the company to grow its trailing fully franked 2.9% dividend strongly over the coming years, especially considering its payout ratio is currently on the low side compared to industry peers.

Premier Investments Limited (ASX: PMV)

Although this retail conglomerate's core brands are acting as a bit of a drag on its overall performance, thankfully its Smiggle, Peter Alexander, and e-commerce platform have been able to more than offset this. And with management intent on greatly expanding its Smiggle and Peter Alexander footprints, I believe these high margin brands will lead to solid bottom line growth over the next few years. In light of this, I expect to see its trailing fully franked 4.2% dividend continue to grow.

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Altium and Premier Investments Limited. 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.

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