2 growing ASX dividend shares for income investors

Rural Funds Group (ASX:RFF) and this excellent ASX dividend share could be quality options for income investors. Here's why…

| More on:
blockletters spelling dividends bank yield

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to bolster your portfolio with some dividend shares, then the two listed below could be worth considering.

Here's what you need to know about these growing ASX dividend shares:

Integral Diagnostics Ltd (ASX: IDX)

The first ASX dividend share to look at is Integral Diagnostics. It is a medical imaging service provider that operates from a total of 72 radiology clinics, including 26 comprehensive sites.

Integral Diagnostics has been a solid performer in FY 2021 thanks to strong demand for its services

During the first half of FY 2021, it reported a 29.5% increase in revenue to $170.7 million and a massive 61.1% jump in net profit after tax to $23.2 million. This allowed the board to increase its dividend once again.

And while a strong gain over the last couple of years means its shares don't provide the biggest yield, it will improve over the coming years.

For example, on a trailing twelve month basis, Integral Diagnostics has paid shareholders dividends of 9.5 cents per share. Based on the latest Integral Diagnostics share price of $4.71, this represents a fully franked 2% yield.

However, looking further ahead, analysts at Goldman Sachs expect its dividend to grow to 15.4 cents per share in FY 2023. This will mean a yield of 3.3%.

Rural Funds Group (ASX: RFF)

The next dividend share to look at is Rural Funds. It is an agriculture-focused property group that owns a number of properties across five agricultural sectors.

These properties are leased to some of the biggest operators in the industry, such as wine giant Treasury Wine Estates Ltd (ASX: TWE), on long term rental agreements.

As these long leases have rental increases built into them, they give the company great visibility on its future earnings.

As a result, management aims to increase its distribution each year by approximately 4%.

Pleasingly, it plans to do exactly this in FY 2021 and is forecasting an 11.28 cents per share distribution. After which, it intends to pay an 11.73 cents per share in FY 2022.

Based on the current Rural Funds share price of $2.40, this will mean yields of 4.7% and 4.9%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Dividend Investing

These buy-rated ASX dividend stocks offer 4% to 7% yields

Brokers think that income investors should be buying these top income options right now.

Read more »

man dressed as santa holding a piggy bank
Dividend Investing

Buy these ASX dividend shares as Christmas presents

Here's why they could be in the buy zone.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Dividend Investing

A 10% dividend yield from an All Ords stock with a forward P/E of 9!

I’m bullish on this stock. Here’s why.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

I'd buy these ASX dividend shares with big yields for income

These are some of the most appealing businesses to me for a big yield.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

15 ASX 200 stocks going ex-dividend before New Year's Eve

Looking for some last minute end-of-year dividend income? Better be quick.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Dividend Investing

Top analysts say these ASX 200 dividend shares are great buys

Here's what analysts are saying about these income options right now.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

Why these ASX dividend stocks could be best buys

Bell Potter thinks these dividend stocks are best buys in December.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

3 quality ASX dividend shares to buy next week

Analysts are tipping these shares as buys for income investors. Let's see what they offer.

Read more »