Today I’m looking at three FTSE 100 (INDEXFTSE: UKX) dividend stars.
Ring up stunning returns
With earnings back on the charge in its core European marketplaces, I reckon Vodafone (LSE: VOD) is a terrific selection for those seeking gigantic dividends in the near-term and beyond.
The company’s £19bn Project Spring organic investment scheme has transformed its fortunes on the continent, a factor that’s expected to finally push group earnings higher after three years of heavy dips. But Europe isn’t the be-all-and-end-all, with Vodafone also enjoying stunning demand from Asia, the Middle East and Africa thanks to galloping wealth levels in these ‘new’ regions.
But a backcloth of rising revenues isn’t the only cause for celebration for dividend chasers, with lower capex costs from this year onwards providing Vodafone’s balance sheet with a significant boost.
Sure, the telecoms titan is expected to keep the dividend on hold at 11.45p per share in the year to March 2017. But this figure still yields a mighty 5.3%. And Vodafone’s improving profits performance is expected to deliver an 11.6p reward next year, nudging the yield to 5.4%.
Build a fortune
Concerns over a possible Brexit on house prices have seen investor demand for Persimmon (LSE: PSN) dive in recent weeks. But the subsequent creation of colossal yields makes the business a hot bet for income chasers, in my opinion.
For 2016 the homebuilder is predicted to pay a 110p-per-share dividend, a figure that yields a smashing 5.6%. And the yield moves to 5.7% for next year thanks to a forecast 112.3p payout.
Of course a leave vote next week could have a huge impact on home values in the immediate term as first-time buyer activity moderates.
Still, in the long-term the profits outlook for Persimmon and its peers remains extremely strong. Britain’s insufficient housing stock is here to stay well into the future, while a relatively-robust domestic economy and favourable lending conditions should keep supporting buying power.
A secure selection
At face value Unilever (LSE: ULVR) may not appear an irresistible purchase for those seeking juicy dividends.
For 2016 the household goods maker is predicted to pay a dividend of 125.8 euro cents per share, yielding 3.1%. And for 2017, an anticipated 134-cent reward yields a decent-if-unspectacular 3.4%.
Both figures clearly lag the FTSE 100 forward average of 3.5%. But what Unilever lacks in big-yield clout, it more than makes up in security.
A cluster of previously-huge yielders like Rio Tinto, Barclays and Rolls-Royce have all been forced to cut dividends in recent times. But the terrific brand power of Unilever’s goods like Dove soap and Walls ice cream — not to mention ubiquity across established and emerging markets — provides it with an earnings outlook much stronger than many of its big-cap peers.
