Royal Dutch Shell (LSE: RDSB) is a dividend champion that deserves a place in any portfolio. The company hasn’t cut its dividend since the Second World War and this is unlikely to change any time soon, despite the falling oil price.
At present levels, after falling 10% over the past 12 months, Shell’s shares now support a dividend yield of 6.1%.
Nevertheless, according to current City forecasts Shell’s earnings are set to fall 31% this year — in line with the falling oil price. However, analysts expect the company’s earnings to rebound by 31% during 2016. The company is currently trading at a forward P/E of 15.4.
Gambling problem
After a tough 2014, Ladbrokes’ (LSE: LAD) shares have recently fallen to a five-year low. Still, the company has maintained its dividend payout.
Current figures suggest that the company will support a dividend yield of 6.4% this year and analysts expect the payout to rise in line with inflation over the next few years.
Unfortunately, Ladbrokes’ earnings per share are set to fall around 20% this year, although they are expected to rebound by 12% during 2016. Based on these figures, the company is currently trading at a forward P/E of 15.2.
Dividend champion
Games Workshop (LSE: GAW) has a reputation for being a dividend stalwart. Over the past five years the company’s annual dividend yield has averaged 7.1% and this is set to continue.
Analysts believe that Games Workshop is set to yield 6.2% this year, 6.8% during 2016 and 7.8% during 2017. The company’s dividend payout is set to increase at an inflation busting rate of 10% per annum.
According to current City forecasts, Games Workshop is currently trading at a forward P/E of 13.1 and the dividend is covered 1.2 times by earnings per share.
Property plays
Taylor Wimpey’s (LSE: TW) profits are surging ahead as the UK property market continues to grow. To reward shareholders, the company is trying to return as much cash to investors as possible.
Indeed, Taylor is planning to issue a special dividend of just under 8p per share this year in addition to the company’s regular payout.
Including the regular payout, Taylor’s shares will support a dividend yield of 6.6% during 2015. Both the special and regular payouts are covered one-and-a-half times by earnings per share, so there’s room for further payout growth. Taylor currently trades at a lowly forward P/E of 10.2.
LSL Property Services (LSE: LSL) is another property play that’s throwing off cash. During 2014 LSL’s shares supported a dividend yield of 6.9%, which included both a regular and special dividend payout. The company’s regular dividend payout came to 12.3p per share during 2014, while the special payout amounted to 16.5p per share.
And there could be further special payouts in the cards. Although City analysts expect the company’s dividend yield to fall back to 4.4% for this year, this figure only includes the regular payout. However, the regular payout is covered more than twice by earnings per share, leaving plenty of room for growth. At present LSL trades at a forward P/E of 9.6.
