MENU

5 Top Income Stocks: McColl’s Retail Group PLC, DX (Group) PLC, Low & Bonar plc, Laura Ashley Holdings plc And Manx Telecom PLC

Photo credit: Rafael Matsunaga. Licence: http://creativecommons.org/licenses/by/2.0/

First up is high-street retailer McColl’s (LSE: MCLS). McColl’s has only been a public company for a year, but the group already offers a market-leading dividend yield.

At present, McColl’s supports a dividend yield of 6% and the payout is covered 1.8 times by earnings per share. The shares trade at a 2015 P/E of 10.6. Analysts believe that McColl’s earnings per share will tick higher by 2% during 2015, which means that McColl’s is trading at a 2016 P/E of 10.1. A dividend yield of 6.2% is pencilled in for 2016. 

Returning to growth 

Delivery company DX (LSE: DX) has been struggling to grow over the past few years. However, analysts believe that 2015 could be the year that the company’s growth finally starts to take off. Earnings per share growth of 117% is expected this year.

And based on these projections DX is currently trading at a forward P/E of 7.9. What’s more, the group is set to support a dividend yield of 6.9% this year. Further growth is expected during 2016. Analysts have pencilled in a projected 2016 dividend yield of 7.2% for DX based on current figures. 

Sluggish growth 

Low & Bonar’s (LSE: LWB) dividend yield currently stands at a 4.5% and the payout is covered more than twice by earnings per share. The company currently trades at a forward P/E of 10.6 and City analysts expect the company’s earnings to expand by 4% this year.

Low & Bonar’s dividend yield is set to hit 4.8% next year and the company is trading at a 2016 P/E of 9.6. 

Laura Ashley (LSE: ALY) is another retailer that offers an attractive level of income for investors. The company currently supports a dividend yield of 6.7% and the payout is covered 1.3 times by earnings per share.

At present, according to City forecasts the company currently trades at a forward P/E of 12, although earnings growth of only 3% is expected next year.

Unfortunately, Laura Ashley’s dividend payout isn’t expected to grow for the next two years. 

Committed to returns 

Lastly, Manx Telecom (LSE: MANX) a communications company based on the Isle of Man.

Manx has put shareholder returns at the top of its to-do list, and the company hiked its dividend payout last year to offer a yield of 5.5%. The payout is covered 1.2 times by earnings per share.

Manx currently trades at a forward P/E of 13.7 and earnings are set to rise 10% next year. According to City figures, the company is set to offer a dividend yield of 5.8% during 2016.

Plenty of opportunity 

These are just five of the market's dividend stalwarts and there are plenty of other dividend champions out there. 

If you're interested in seeking out more of the market's top income stocks then why not check out The Motley Fool's new income report double pack.

For a limited time only we've bundled together our top income report, "How To Create Dividends For Life", with a new report entitled, "My 5 Golden Rules for Building a Dividend Portfolio".

Together, the two reports teach you everything you need to know to build a buy and forget dividend portfolio.

Just click here to download the free report double pack today!

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.