While I think that the Telstra Corporation Ltd (ASX: TLS) and Westpac Banking Corp (ASX: WBC) dividends are great options for investors, especially after recent declines, I'll be the first to admit that I don't expect either company to be growing their dividends much over the next few years.
So investors that are on the lookout for dividends with strong growth potential may want to skip Telstra and Westpac and consider one of these dividend shares instead:
Collins Foods Ltd (ASX: CKF)
At present this KFC restaurant operator's shares provide investors with a trailing fully franked 3.2% dividend. Whilst this isn't the biggest yield available on the local share market, I believe that it has strong growth potential thanks to the company's expansion plans. Collins Foods has its eye firmly fixed on the underpenetrated European market. Given the size of the opportunity, if the company expands successfully then I believe it could lead to above-average earnings and dividend growth for the next decade.
Money3 Corporation Limited (ASX: MNY)
This financial services company's shares currently offer investors a trailing fully franked 4.2% dividend. Thanks to the early success of its secured auto loans business, I think this dividend could increase significantly in the future if the company can continue to win market share. At the last count, Money3 had grown its share of the secured second-hand automotive finance market to 2%. I believe this provides the company with a huge runway for growth.
Premier Investments Limited (ASX: PMV)
This retail conglomerate's shares may be close to an all-time high, but they still provide a generous trailing fully franked 3.6% dividend. Due largely to the runaway success of the company's Smiggle brand and its ambitious international expansion plans, I believe Premier Investments can grow this dividend meaningfully over the next decade. Especially with the company's e-commerce business performing ahead of expectations. Last month the company advised that total online sales grew by 71.2% during the first-half to $56 million. This puts the company on course to achieve its $100 million online sales target during the 2018 calendar year, two years ahead of schedule.
