Insights

2 quick-growing ASX dividend shares to buy

Kogan.com Ltd (ASX:KGN) and this ASX dividend share are growing fast. Here’s why they could be great options for income investors…
The post 2 quick-growing ASX dividend shares to buy appeared first on The Motley Fool Australia. –

fingers walking up piles of coins towards bag of cash signifying asx dividend shares

If you’re looking to invest in companies with growing dividends, then you may want to check out the ones listed below.

They may not offer the biggest yields right now, but they could widen materially over the next decade. Here’s what you need to know:

Kogan.com Ltd (ASX: KGN)

Kogan is of course one of Australia’s leading ecommerce companies. It offers everything from electronics, furniture, and even vehicles through its Kogan Cars brand. The company has also bolstered its offering further with the acquisitions of Matt Blatt and Mighty Ape. The latter has added ~750,000 active customers, predominantly in the New Zealand market.

Kogan has been growing strongly over the last few years thanks to the shift to online shopping. This has been particularly the case in FY 2021 due to the pandemic accelerating the shift. For the six months ended 31 December, Kogan reported a 97.4% increase in gross sales to $638.2 million and a 250.2% lift in adjusted net profit after tax to $36.5 million.

The good news is that Kogan appears well-placed for long term growth as more spending ends up online. One broker that expects this to lead to growing dividends is UBS.

It is forecasting a 32 cents per share dividend in FY 2021 and then a 39 cents per share dividend in FY 2022.  Based on the latest Kogan share price of $12.47, this equates to fully franked 2.55% and 3.1% dividend yields.

And while UBS currently has a neutral rating on its shares, its price target of $15.10 is notably higher than where it trades today.

Sonic Healthcare Limited (ASX: SHL)

Another ASX dividend share that is growing at a strong rate is this leading medical diagnostics company.

Thanks partly to increased demand for COVID-19 testing, Sonic released its half year results in February and revealed a 33% increase in revenue to $4.4 billion and a 166% jump in first half net profit to $678 million.

Positively, COVID testing demand remains strong and is expected to stay this way until at least the end of the year. This appears to have put the company in a position to continue its positive form into FY 2022. In addition, the company has a very strong balance sheet, giving it the opportunity to accelerate its growth with acquisitions.

Credit Suisse is a big fan of the company and has an outperform rating and $40.00 price target on its shares.

The broker is also expecting a 93 cents per share partially franked dividend in FY 2021 and a 97 cents per share dividend in FY 2022. Based on the current Sonic Healthcare share price, this will mean yields of 2.6% and 2.7%, respectively.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 15th February 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 quick-growing ASX dividend shares to buy appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!