The Motley Fool

Can you afford to miss these ‘secret’ dividend winners?

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.

Today I’m looking at four FTSE SmallCap (INDEXFTSE: SMX) income stars.

Diversified dynamo

I reckon support services play Cape’s (LSE: CIU) exposure to a broad range of industries should allow it to keep revenues moving skywards. And although the energy and mining industries remain in peril, investors should take heart from the firm’s chunky £862m order book as of March.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

The City expects Cape to maintain the dividend at 14p per share in both 2016 and 2017, figures that yield a splendid 7.1%. And dividend cover of 1.8 times for these years is pretty robust, even if it falls just short of the safety benchmark of 2 times.

Staffing star

I also believe SThree’s (LSE: STHR) terrific sector and geographic diversification make it a terrific bet for those seeking reliable earnings — and consequently dividend — growth in the years ahead. And the recruitment specialist is undertaking shrewd restructuring to mitigate weakness in key segments such as the oil and gas markets.

SThree is expected to pay a dividend of 14.1p per share for the year to November 2016, up from 14p last year and yielding a decent 5.8%. And this figures moves to 5.9% next year thanks to a predicted 14.4p reward.

Dividend coverage stands at 1.5 times through to the close of next year.

Marketing marvel

I’m backing the impressive international footprint of Communisis  (LSE: CMS) to help it avoid the worst that Brexit kicks up. The company currently operates in almost 30 global territories, and is expanding its presence in order to keep winning business with major blue chips — it counts AXA, Barclays and BT Group among its clients.

The marketing play has a long history of hiking the dividend, and is predicted to raise it to 2.4p per share this year, up from 2.2p in 2015 and yielding 6.6%. And next year’s anticipated payout of 2.5p pushes the yield to 6.9%.

Meanwhile, dividend cover of 2.6 times and 2.5 times for 2016 and 2017 respectively should satisfy even the most cautious of investors.

Make healthy returns

I believe healthcare facility provider Primary Health Properties (LSE: PHP) is a great long-term pick for investors. Not only should government investment in primary care keep boosting PHP, but bubbly acquisition activity should also help to drive the bottom line.

Primary Health Properties’ dividend is predicted to rise from 4.91p per share last year to 5.1p and 5.3p in 2016 and 2017, yielding a splendid 4.7% and 4.9% respectively.

It’s true that dividend coverage for the period is poor — payouts are covered just 1 times by estimated earnings for 2016 and 1.1 times for next year. But I reckon the firm’s defensive operations and solid balance sheet should soothe the nerves.

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

Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.