3 top small cap dividend shares with generous yields

475

When it comes to picking dividend shares I think investors ought to consider some of the quality options at the small-end of the market.

After all, some of these shares have the potential to grow their dividends significantly over the next few years, whereas many of their large cap rivals may at best have to keep their pay outs steady.

Three small cap dividend shares that I think are worth a closer look are as follows:

Baby Bunting Group Ltd (ASX: BBN)

Based on its last close price, this baby products retailer’s shares currently offer investors a trailing fully franked 5.4% dividend. While I suspect that this dividend will remain flat at best in FY 2018 due to margin pressure from the clearance sales of closing competitors, once this short term headwind passes I expect Baby Bunting to win the vacated market share and deliver sizeable profit and dividend growth. This could mean it is worth considering a patient buy and hold investment today.

Money3 Corporation Limited (ASX: MNY)

I have been very impressed at the way Money3 has successfully transitioned away from payday loans to secured auto loans. But despite its early success, Money3 still only has a 2% share of the secured second-hand automotive finance market. Because of this, I think the company has a significantly long runway for growth ahead of it. Which would be great news for its future earnings and dividend growth. In respect to the latter, Money3’s shares provide a trailing fully franked 4.3% dividend at present.

Shriro Holdings Ltd (ASX: SHM)

Shriro is a kitchen appliance and consumer products company which could be well worth a closer look. Despite delivering solid earnings per share and dividend growth over the last few years, Shriro’s shares are still only trading at a lowly 9x trailing earnings and provide a trailing fully franked 8% dividend. While there are concerns that the local market has matured for it, the company is expanding internationally. If that is a success then it could continue its strong run for many years to come.

 

Here’s how you can strike it rich in the share market…

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks