Some ASX dividend shares haven't grown their dividends over the last few years. But, a select few are now paying substantially more than they were five years ago.
Businesses that have been growing profits have the financial flexibility to pay shareholders larger payments.
While it's hard to say what the next five years will look like, I think it could be interesting to look at some ASX dividend shares' growth performance, their current yields, and what they're expected to pay next.
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Dicker Data Ltd (ASX: DDR)
Dicker Data describes itself as a technology hardware, software, cloud, cybersecurity, access control and surveillance distributor.
In FY22 so far it has paid 26 cents per share, which represents two of the expected four quarterly payments.
In the first half of FY17 it paid 8 cents per share, so HY22 represents an increase of 225%. Indeed, the FY22 half-year dividend is 55% more than the entire FY17 dividend.
At the current Dicker Data share price, the last four dividends from the ASX dividend share amount to 50 cents per share, equating to a grossed-up dividend yield of 7%.
The broker Morgan Stanley currently has an overweight (buy) rating on Dicker Data with a price target of $14. That suggests that the Dicker Data share price could go up by more than 30% over the next year.
In FY23, the broker expects Dicker Data to pay a grossed-up dividend yield of 5.7%.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle Investment Management is a business that invests in other asset managers and helps them grow by enabling them to focus on the investing side of things. Pinnacle can offer services like distribution and client services, middle office and fund administration, compliance, finance, legal and so on.
It is invested in fund managers like Plato, Solaris, Antipodes, Spheria, Firetrail, Metrics, Coolabah and Five V. Pinnacle tries to invest in some of the leading fund managers around.
In FY22, the ASX dividend share paid an annual dividend of 35 cents per share. In FY17 it paid an annual dividend of 7 cents per share. That means it has increased its dividend by 400% in that time.
At the current Pinnacle share price, it has a trailing grossed-up dividend yield of 6%.
The broker Macquarie currently rates Pinnacle as a buy, with a price target of $11.78. That's a potential rise of around 40% over the next year.
In FY24, the broker is currently predicting Pinnacle could pay a grossed-up dividend yield of 7%.
