In turbulent times like these, it’s always a good idea to have some exposure to gold. In fact, if the size and suddenness of October’s stock market corrections have taught us anything, it is that it’s a wise investor who is prepared for such eventualities all of the time.
Holders of Polymetal International (LSE:POLY) would have been toasting the waves of risk-aversion that battered financial markets in recent weeks, its share price leaping to levels not seen since February on the back of a resurgent bullion price.
And there’s plenty of reason to expect gold to remain well bought as Brexit talks reach their end game, as the second Cold War ramps up, as the war of words over international trade goes on, and as fears of overheated equity markets grow.
With earnings at Polymetal expected to keep flying through the medium term at least, City brokers are predicting bulky dividends of 44 US cents per share and 52 cents for 2018 and 2019 respectively, figures that yield a chunky 4.7% and 5.6%.
The significant growth potential for value shopping brands makes B&M European Value Retail (LSE: BME) another great dividend share to buy today.
The FTSE 250 retailer doesn’t boast the same sort of monster yields as Polymetal, its own readings clocking in at 2.1% for this year and 2.4% for next year. But the rate at which the firm is growing its dividends, assisted by some fairly stunning double-digit earnings advances, still makes it a brilliant income share, I feel.
The full-year payout leapt almost 25% in the year to March 2018, for example, to 7.2p per share. And City boffins are predicting that it will swell to 8.5p this year and to 9.8p next year.
I’ve previously tipped B&M to thrive as it expands rapidly across the UK and Germany. And news last week that it was continuing its European invasion with the takeover of French cut-price retailer Babou boosted my enthusiasm. Its trading model is terrific and should be as popular with Gallic shoppers as those in its other territories.
A hot dip buy
I feel Hill & Smith (LSE: HILS) is another great dividend growth to pile into today despite the release of disappointing financials more recently.
In August, investors took fright after the crash barrier builder advised that short-term delays to some UK road projects, allied with the impact of bad weather, caused profits to fall short of expectations in the first fiscal half.
Still, thanks to its robust order book, Hill & Smith advised that it expects a good second half of 2018. And looking further down the line, the profits outlook looks good too, as infrastructure investment in Britain as well as the US is only heading one way, and that is northwards.
So I fully expect dividends, which have relentlessly risen for about a decade-and-a-half, to continue rising. The City agrees and last year’s 30p per share reward is anticipated to rise to 31.8p in 2018 and again to 33.1p next year, figures that yield a beefy 3.3% and 3.4% respectively.