Kogan.com Ltd (ASX:KGN) and this ASX share could be dividend stars of the future…
The post 2 ASX shares that could be dividend stars of the future appeared first on The Motley Fool Australia. –
If you’re an income investor with a long term view, then you might want to consider the dividend shares listed below.
While they may not provide the largest yields on the market today, they look well-positioned to grow their dividends at an above-average rate over the next decade.
This could make them dividend stars of the future:
Integral Diagnostics Ltd (ASX: IDX)
Integral Diagnostics is a medical imaging service provider that operates from a total of 72 radiology clinics, including 26 comprehensive sites.
Demand for its services has been strong despite the pandemic. For example, during the first half of FY 2021, Integral Diagnostics reported a 29.5% increase in revenue to $170.7 million and an even more impressive 61.1% jump in net profit after tax to $23.2 million.
Over the last 12 months, the company has paid shareholders dividends of 9.5 cents per share. Based on the latest Integral Diagnostics share price, this represents a fully franked 2% yield.
However, analysts at Goldman Sachs expect this to grow strongly in the future. It has pencilled in a dividend of 15.4 cents per share in FY 2023, which will mean a yield of 3.3% at that point.
Kogan is one of Australia’s leading ecommerce companies. It has over 3 million active customers across its Kogan business and over 700,000 for its Mighty Ape business.
While it isn’t traditionally classed as a dividend share, the Kogan share price has crashed lower in 2021. This means it now offers a reasonably attractive trailing dividend yield, which has the potential to widen considerably over the coming years.
Kogan paid shareholders a final dividend of 13.5 cents per share in FY 2020 and an interim dividend of 16 cents per share in FY 2021. This represents a fully franked 29.5 cents per share over the last 12 months. Which, based on the latest Kogan share price of $10.69, represents a yield of ~2.8%.
What Kogan will pay over the next 12 months is difficult to say due to its declining profitability during the second half, but investors that are patient are likely to be rewarded handsomely over the next decade.
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Returns As of 15th February 2021
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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.
The post 2 ASX shares that could be dividend stars of the future appeared first on The Motley Fool Australia.