4 Fantastic Income Stocks: Vodafone Group plc, Royal Dutch Shell Plc, Petrofac Limited And Pennon Group plc

These 4 stocks could boost your income: Vodafone Group plc (LON: VOD), Royal Dutch Shell Plc (LON: RDSB), Petrofac Limited (LON: PFC) and Pennon Group plc (LON: PNN)

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Vodafone

With a dividend yield of 5%, Vodafone (LSE: VOD) remains one of the most appealing income stocks in the FTSE 100. In fact, its yield is over 50% greater than that of the FTSE 100 and, even though dividends per share are not forecast to rise at a brisk pace over the next two years (annualised growth of just 0.9% is expected), such a high yield means that Vodafone is likely to remain a firm favourite among income-seeking investors.

Furthermore, with it having strong cash flow and a relatively strong balance sheet, Vodafone could continue to make acquisitions that, in time, may result in a faster growth rate of profitability and dividends. As such, it remains a top notch income stock.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Shell

Concerns surrounding the future of the oil price are very understandable, with oil major, Shell (LSE: RDSB) (NYSE: RDS-B.US), expected to see its bottom line come under pressure over the medium term. And, with a sustained rally in the price of the commodity seeming unlikely in the months ahead, things could get worse before they get better for companies across the oil sector.

Despite this, and even though Shell’s dividend coverage ratio is set to fall to just 1.1 times in 2015, its bottom line is expected to rise by a whopping 33% next year, thereby making any pressure on its dividend payments a relatively short term issue.

Furthermore, with Shell currently yielding a very impressive 5.6%, it continues to appeal greatly to income-seeking investors, thereby making the present time a good opportunity to buy a slice of it.

Petrofac

Also struggling with a lower oil price is oil and gas services company, Petrofac (LSE: PFC). Its bottom line is expected to have fallen by 16% last year and by a further 14% this year, although as with Shell it is forecast to bounce back strongly next year with growth of 21%.

The impact of this volatility on its dividend, though, is expected to be somewhat minimal over the medium term. That’s because Petrofac is still forecast to yield 5.1% in 2016 from a dividend that is due to be covered a very healthy 2.6 times by profit.

And, with Petrofac trading on a forward price to earnings (P/E) ratio of just 7.4, it seems to be a great value as well as income play at the present time.

Pennon

While the likes of Shell and Petrofac offer a great income but significant volatility, water company Pennon (LSE: PNN) provides investors with a great yield and a very stable shareholder experience. That’s at least partly because it has a beta of just 0.6, and also because the provision of water services offers a relatively high degree of earnings visibility.

Certainly, Pennon’s yield of 3.8% may be lower than many of its index peers but, with dividends per share forecast to grow by 5% per annum over the next two years, it could prove to be a top notch income play. And, when its defensive prospects are taken into account, it could be a great stock to own while the outlook for the FTSE 100 remains highly uncertain.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Peter Stephens owns shares of Petrofac and Royal Dutch Shell. The Motley Fool UK owns shares of Petrofac. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

A person holding onto a fan of twenty pound notes
Investing Articles

I’d buy this crashed FTSE 100 share for its near-7% dividend yield!

These five FTSE 100 shares have crashed, losing 18% to 25% of their value in one month. But I'd buy…

Read more »

Smiling senior white man talking through telephone while using laptop at desk.
Investing Articles

How I’d invest a Stocks and Shares ISA with a 10-year time frame

Our writer explains how he focusses his Stocks and Shares investment choices by using a long-term perspective.

Read more »

UK money in a Jar on a background
Investing Articles

3 reasons to consider the 7% Legal & General dividend yield

The Legal & General dividend yield of 7% is one reason our writer would consider buying the shares for his…

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Should I buy this FTSE 250 defensive stock?

Jabran Khan is looking for defensive stock options for his holdings and delves deeper into this FTSE 250 food manufacturing…

Read more »

pink toy piggy money box on yellow background
Investing Articles

5 ‘no-brainer’ FTSE 250 shares to buy today

I'm seeing a lot of attractive dividend shares in the FTSE 250 right now. This approach gives me some very…

Read more »

Windmills for electric power production.
Investing Articles

The SSE share price slumps by 11%! Should I buy today?

The SSE share price tumbled today after talks of a windfall tax on electricity generators. Our writer considers if it’s…

Read more »

British Pennies on a Pound Note
Investing Articles

3 penny shares I own instead of Woodbois

Our writer prefers these three penny shares over hot stock Woodbois -- which is why he has bought them.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Investing Articles

This FTSE 100 stock has tumbled in price. Here’s why I’d buy it now!

This FTSE 100 stock has tumbled to nearly half of its value since the start of 2022. This presents a…

Read more »