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