I believe the Australian share market is home to a number of quality shares with the potential to grow their dividends at above-average rate.
Two which I think are well worth considering today are listed below. Here's why I like them:
AGL Energy Ltd (ASX: AGL)
This energy company's shares provide a trailing fully franked 3.7% dividend at the current share price. This is expected to grow strongly over the next couple of year according to a recent note out of Goldman Sachs.
Its analysts believe that the combination of its increased payout ratio and strong growth in earnings will lead to its dividend growing at an average of 17% per annum for the next three years. In light of this, the broker has a buy rating on its shares and a price target of $31.10.
Helloworld Travel Ltd (ASX: HLO)
Despite this travel agent's stellar run this year, its shares still provide investors with a trailing fully franked 3.1% dividend. Considering management is confident that demand for its integrated service offering will continue to develop and grow, I think Helloworld could be dividend star of the future.
In FY 2018 EBITDA is expected to increase 21% year-on-year and I feel its dividend could grow at a similar rate. This could make it a great alternative to Webjet Limited (ASX: WEB), which only provides investors with a trailing 1% dividend at present.
