I think the small end of the market is home to several quality dividend options for income investors to consider.
Three that stand out for me are listed below. Here's why I like them:
Collection House Limited (ASX: CLH)
Earlier today this receivable management company lifted its purchase debt ledger investment guidance for FY 2018 due to favourable changes in the banking sector. Pleasingly, management believes it can generate a higher return on these investments thanks to improvements in collection efficiencies, technology adoption, and improved data analysis. If this proves to be the case, then I think Collection House could be well-positioned to deliver strong growth in earnings and dividends in FY 2018 and FY 2019. At present its shares offer a trailing fully franked 4.8% dividend.
Money3 Corporation Limited (ASX: MNY)
Thanks to its successful pivot away from payday loans to secured auto loans, I think Money3 is a company on the rise. Although the company's loan book has been growing at an impressively strong rate, it still only has a very small share of the secured automotive finance market. If the company can continue its fine form, it could have a significant runway for growth ahead of it. This could allow it to grow its earnings and dividend at an above-average rate for the foreseeable future. At present Money3's shares offer a trailing fully franked 3.9% dividend.
Rural Funds Group (ASX: RFF)
It may not be the most exciting investment but this real estate investment trust (REIT) could be a great option for income investors. The REIT has a diverse portfolio of farm assets that produce commodities including cotton, cattle, poultry, vineyards, macadamias, and almonds. Due to rental indexation being built into its rental contracts, Rural Funds has a lot of visibility on future cash flows and is able to grow its distribution at a solid and predictable rate each year. At present Rural Funds offers a trailing distribution yield of approximately 4.7%.
