Today I am running the rule over four little-known dividend stars.
Supported by steady US economic growth, I believe business jet specialists BBA Aviation (LSE: BBA) should deliver sterling returns in the years ahead.
Investors should be buoyed by the improving momentum of BBA Aviation’s Signature flight support arm, the world’s largest fixed base operation (or FBO) network. The division is responsible for around four-fifths of group profits.
With the $2.07bn acquisition of Landmark Aviation in September also boosting the firm’s long-term earnings outlook, BBA Aviation is predicted to shell out generous dividends of 12.7 US cents and 13.3 cents per share in 2016 and 2017 respectively. These figures yield a chunky 4.4% and 4.7%.
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Despite weakness in its UK construction arm, I reckon the diversified nature of Interserve’s (LSE: IRV) operations should keep dividends chugging higher. The business saw pre-tax profit leap 28% to £79.5m last year as its British Support Services and International Construction arms kept delivering the goods.
And investors should take heart from Interserve’s terrific relationship with blue-chip clients across the globe — the company inked key contracts with London Underground, B&Q, Superdrug and the Dubai Aviation City Corporation last year, for example.
Against this backdrop the City expects Interserve to raise the dividend to 25.3p per share in 2016, yielding a spectacular 5.7%. And the yield moves to 5.9% for next year thanks to a predicted 26.5p reward.
Signs of improvement in the broadcasting space looks set to support chunky dividends at camera and equipment specialists Vitec Group (LSE: VTC) looking ahead.
Industry data suggests that heavy demand declines for lens cameras is starting to moderate, while a string of major events in 2016 — from the Rio Olympic Games and European Football Championships through to the US Presidential election — should deliver solid revenues expansion in the near-term.
And for the coming years, a steady stream of new product launches — combined with Vitec’s massive restructuring drive — should undergird stunning earnings growth.
For 2016 the ‘Square Mile’ expects Vitec to lift the dividend to 26.3p per share, yielding a market-bashing 4.4%. And a projected 26.6p payout for 2017 will keep the yield at a market-smashing level.
Tux renter and suit retailer Moss Bros Group (LSE: MOSB) has seen sales explode in recent times, its extensive store refit programme and brand investment paying off handsomely.
Meanwhile, improvements to the company’s online proposition is also promising to deliver plump rewards in this critical growth market. Moss Bros saw total internet sales gallop almost a third higher in the year to early January, making the online division responsible for 10% of group sales.
The City expects Moss Bros to fork out a dividend of 5.7p per share for the period ending January 2017, yielding an eye-watering 5.7%. And a yield of 5.9% is in place for 2018 thanks to predictions of a 5.9p dividend.