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3 Shares Poised To Deliver Market-Busting Yields Beyond 2015: Banco Santander SA, Royal Mail PLC And Taylor Wimpey plc

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Today I am highlighting three FTSE 100 stars predicted to pump out terrific dividend yields well into the future.

Banco Santander

Despite persistent fears over the health of the banking system, there has been a colossal disconnect between earnings and dividends at Banco Santander (LSE: BNC) (NYSE: SAN.US) for quite some time now, much to the cheer of dividend hunters.

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However, City analysts expect the banking behemoth to shutter this unsustainable policy once 2014’s results are published, and Santander is expected to cut the full-year payment to 58 euro cents per share from 60 cents in the previous year. But the rebasement is expected to really click through the gears from 2015, and a payout of 38.5 euro cents per share is pencilled in for both this year and next.

Still, Santander remains a highly lucrative dividend selection throughout this period, boasting a dividend yield of 6.5% through to the close of 2016.

These figures are supported by projected earnings increases of 17% and 13% in 2015 and 2016 respectively, meaning that dividends are covered 1.5 times and 1.7 times by earnings. And with recent European Banking Authority stress tests underlining the capital strength of the bank, I believe that Santander’s dividend outlook is in great shape.

Royal Mail

Of course, a backcloth of intensifying competition continues to raise questions over Royal Mail’s (LSE: RMG) profits outlook, as evidenced by rival City Link’s collapse last month. Still, in my opinion the effect of surging e-commerce on parcel volumes at the company — both at home and abroad — combined with the fruits of further significant restructuring, makes the business a terrific dividend selection.

Against a backdrop of resplendent earnings growth — expansion to the tune of 21% is pencilled in for the year concluding March 2015 — the number crunchers expect Royal Mail to hike the dividend an eye-watering 60%, to 21.2p per share. Consequently the business offers up a stonking yield of 5%.

But the good news does not end here, and expectations of further earnings expansion in 2016 and 2017 is anticipated to push the payout to 21.8p and 22.4p respectively. Consequently, the yield rises to a juicy 5.2% for next year and 5.3% for 2017.

Taylor Wimpey

Housebuilding colossus Taylor Wimpey (LSE: TW), like the rest of the sector, has fallen out of favour with investors in recent days as fears of a slowing housing market have reached fever pitch.

However, I for one believe that these concerns are vastly overcooked — indeed, Taylor Wimpey commented this week that “more balanced market conditions, with a lower rate of price growth… should create a healthy and more sustainable housing market.” The business saw completions rise 6% in 2014 to 12,454 homesteads, while the order book leapt 17% to a record £1.4bn.

With the housing market crunch set to persist well into the future, City analysts expect total dividends in 2015 to tally up at 8.8p per share this year, supported by a 34% earnings advance and up from an anticipate 8.6p for 2014. This projection creates a meaty 7% yield.

And things get even better for 2016, with estimates for further bottom line growth subsequently pushing the full-year payout to 9.4p, resulting in a mammoth yield of 7.5%.

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Royston Wild owns shares of Taylor Wimpey. 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.

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