Today I’m running the rule over four Footsie-quoted dividend stars.
Flying high
With demand for cheap plane tickets exploding across the continent, I believe easyJet (LSE: EZJ) should keep delivering bumper shareholder returns well into the future.
The Luton airline is latching onto this trend by aggressively expanding the number of routes it operates across Europe, not to mention the number of airports it operates from.
With the City subsequently expecting easyJet’s stellar growth story to keep rolling, dividends are expected to surge to 68.3p and 80.9p per share for the years to September 2016 and 2017. Consequently the flyer boasts huge yields of 4.8% and 5.6% for these years.
Cigarette star
Boosted by its star stable of revenues drivers, I reckon Imperial Brands (LSE: IMB) should remain a popular pick with income chasers.
The terrific brand power of labels like West and Davidoff is allowing Imperial Brands to hurdle the problem of declining industry volumes as market share gradually expands. Meanwhile, recent expansion in the white-hot US market also promises to keep the top line rolling, as sales of Winston and Kool also hurtle higher.
Against this backdrop Imperial Brands is expected to pay a dividend of 157.7p per share for the period to September 2016, yielding a market-beating 4.3%. And the yield moves to 4.7% for next year thanks to a predicted 173.6p reward.
Make space for great returns
Strong demand for space from the retail and office segments makes property investment trust Hammerson (LSE: HMSO) a sound investment, in my opinion.
Broker-beating ONS retail sales figures this week underlined the strength of Britons’ spending power, a promising omen for Hammerson’s revenues outlook. And I believe the firm’s on-going acquisition programme should enable it to make the most of strong conditions in its key markets.
This view is shared by the number crunchers, leading to predicted dividends of 24p per share for 2016 and 25.5p for next year. Hammerson consequently carries yields of 4.2% and 4.5% for these years.
Money maker
Specialist currency manager Record (LSE: REC) could also prove a spectacular income pick in the years ahead thanks to its robust capital position.
Record commented on Friday that its balance sheet and regulatory capital buffer is “sufficiently strong” to potentially support the awarding of special dividends looking ahead.
In its full-year results, the company saw assets under management edge 0.3% higher during the period to March 2016, to £37.4bn. And Record remains bullish despite challenging market conditions, advising that “the business is well placed to face such challenging environments and to take advantage of the opportunities arising.”
And for the time being, the City expects dividends of 1.7p per share for both 2017 and 2018. Consequently Record boasts a brilliant yield of 7.1% for these periods.
