Today I am looking at three FTSE 100 stars ready to deliver spectacular returns in 2015.
Centrica
To say that 2014 has been an annus horribilis for the country’s major energy providers like Centrica (LSE: CNA) is something of an understatement. The British Gas operator’s share price has slumped 28% since Labour’s demand for a 20-month tariff freeze last autumn, with subsequent calls from profit curbs through to a potential break-up weighing on shareholder appetite.
Centrica’s top-line has taken a subsequent battering, as the company has elected to put off initiating price hikes in a bid to curry favour with regulators, politicians and the public alike. And although these issues could harm Centrica’s investment appeal in the long term, City analysts suggest that current share price weakness could make the business an appealing medium-term dividend pick at least.
Even though earnings at Centrica are expected to dive 26% during the current year, the business is still expected to lift the full-year payout 3% to 17.5p per share. And a 10% earnings rebound in 2015 is anticipated to herald another 3% dividend improvement, to 18p.
Subsequently the electricity giant boasts a terrific yield of 6.2% for 2014, and which rises to an even more impressive 6.3% for 2015.
Standard Chartered
As a consequence of financial cooling in key emerging markets, earnings performance at Standard Chartered (LSE: STAN) is expected to remain meagre through to the end of next year at least — indeed, a 3% slip is anticipated this year before a 7% improvement kicks in next year.
Accordingly, Standard Chartered is expected to keep the full-year payout on hold at 86 US cents per share in both 2014 and 2015. Still, these figures still create a bumper dividend yield of 5.7% through to the close of next year.
Investors should be aware that question marks remain over Standard Chartered’s capital position, however, even though the board reiterated its confidence in the balance sheet again last month. But should performance in developing regions continue to drag, and the firm be forced to engage in a rights issue to prop up its capital holdings, current dividend projections could come under the cosh.
Persimmon
Housebuilder Persimmon (LSE: PSN) is in prime position to enjoy solid earnings, and with it dividend, growth next year and beyond as newbuild demand continues to outstrip supply.
Countering wider concerns over a slowing housing market, the business announced last month that it has sold all of its properties for this year, and that forward sales are up 12% from the same point last year at £696m.
Underpinned by an expected 43% earnings improvement this year, Persimmon is anticipated to raise the full-year dividend 4% in 2014 to 77.9p per share. And with an additional 22% bottom line improvement predicted for 2015, an even meatier 27% payout hike is chalked in for 2015, to 99.1p.
As a consequence yields at the business rise from a terrific 5.1% for 2014 to an eye-popping 6.5% for next year.
