Insights

These ASX shares are growing their dividends at a solid rate

If you’re looking for dividend shares that could grow strongly in the future, then you might want to check out…
The post These ASX shares are growing their dividends at a solid rate appeared first on The Motley Fool Australia. –

If you’re looking for dividend shares that could grow strongly in the future, then you might want to check out the ones listed below.

While they may not offer the largest yields on the share market, they have the potential to grow materially over the 2020s. Here’s what you need to know about them:

Bapcor Ltd (ASX: BAP)

Bapcor is the Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions. It has a growing network of stores across the region under brands such as Autobarn, Burson Auto Parts and Midas.

The company has been a very positive performer in recent years and has continued this strong form in FY 2021 thanks to strong demand for used cars. And with semiconductor shortages unlikely to be resolved any time soon, the supply of new vehicles looks set to remain tight for some time to come. This bodes well for its near term growth.

Pleasingly, thanks to its strong market position and its international expansion plans, its longer term growth looks positive as well. This appears to have put Bapcor in a position to continue growing its dividend for the foreseeable future.

Citi is positive on the company and currently has a buy rating and $9.50 price target on its shares.

The broker is forecasting fully franked dividends of 19 cents per share in FY 2021 and then 22 cents per share in FY 2022. Based on the current Bapcor share price of $8.25, this will mean yields of 2.3% and 2.5%, respectively.

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics is a medical imaging service provider that operates from a total of 72 radiology clinics. This includes 26 comprehensive sites.

As with Bapcor, Integral Diagnostics has been a solid performer in FY 2021. For example, during the first half of FY 2021, it reported a 29.5% increase in revenue to $170.7 million and a sizeable 61.1% jump in net profit after tax to $23.2 million.

Goldman Sachs appears confident that it still has a long runway for growth. This is expected to lead to increasing dividend payments in the coming years.

The broker is forecasting dividends per share of 11 cents in FY 2021, 14 cents in FY 2022, and 15 cents in FY 2023. Based on the latest Integral Diagnostics share price of $5.09, this will mean fully franked yields of 2.15%, 2.75%, and 2.95%, respectively.

Goldman has a buy rating and $5.50 price target on the company’s shares.

The post These ASX shares are growing their dividends at a solid rate appeared first on The Motley Fool Australia.

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.

Returns As of 15th February 2021

More reading

2 ASX shares that multiple brokers think could be buys

2 growing ASX dividend shares named as buys

2 top ASX dividend shares rated as buys

2 growing ASX dividend shares for an income portfolio

3 reasons why the Bapcor (ASX:BAP) share price could be a buy

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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.

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!