While a big yield like that on offer with the Telstra Corporation Ltd (ASX: TLS) dividend is great, I think that dividends with the potential to grow at a quick rate are even better.
Two shares which I believe are capable of doing this are listed below. While their respective yields may not be the biggest today, in time I expect the yield on cost will widen considerably.
They are as follows:
Money3 Corporation Limited (ASX: MNY)
Thanks to the impressive performance of its secured automotive loans business, I think Money3 would be a great option for income investors. The company recently announced a new debt facility that will give it the capacity to almost double its market share. I expect this will put Money3 in a great position to continue growing its dividend over the coming years. At present its shares provide a trailing fully franked 3.4% dividend.
Premier Investments Limited (ASX: PMV)
Thanks to the increasingly popular Smiggle and Peter Alexander brands, I believe this retail conglomerate is capable of growing its dividend at an above-average rate for the next few years at least. The Smiggle business, for example, is expected by management to generate annual sales in excess of $450 million by FY 2020. This is almost double FY 2017's sales. At present its shares provide a trailing fully franked 3.7% dividend.
