Today I am looking at three stocks poised to deliver generous dividend flows.
I believe that telecoms leviathan Vodafone (LSE: VOD) (NASDAQ: VOD.US) is in terrific shape to provide plump dividend income well into the future. Not only are trading conditions in its key European territories improving, but the London firm is also pulling up trees in the lucrative regions of Asia. And Vodafone is investing heavily in these markets to underpin future growth, exemplified by its $19bn Project Spring organic programme as well as a spate of acquisitions made in exciting areas such as ‘quad-play’ entertainment.
Even though Vodafone is expected to follow a 63% earnings dip for the year concluding March 2015 with an extra 5% slippage in fiscal 2016, Vodafone’s position as a terrific cash generator is anticipated to keep dividends rolling. Indeed, a projected total payout of 11.5p per share for last year is touted to rise to 11.8p in the current 12-month period.
And with Vodafone anticipated to enjoy a 5% uptick in the bottom line in fiscal 2017, the dividend is predicted to rise further still, to 11.9p. Consequently a market-smacking yield of 5.3% for 2016 rises to an irresistible 5.4% for next year.
Weapons builder BAE Systems (LSE: BA) is in great shape to enjoy a tremendous earnings bounceback in the coming years in my opinion, a situation which should keep dividends rolling higher. While improving economic conditions in the West — not to mention rising geopolitical instability — should support arms sales in the coming years, rising demand for the firm’s cutting-edge technologies from Saudi Arabia and other emerging markets should also push profits higher.
City analysts expect BAE Systems to wave goodbye to the earnings volatility of recent years from 2015 onwards, and current forecasts suggest the company is set to follow a 3% bottom-line advance this year with an extra 6% rise in 2016.
And with revenues back on the march, the defence giant is expected to raise last year’s 20.5p per share payout to 20.9p in 2015, resulting in a chunky 4% yield. And a further dividend hike next year, to 21.7p, shoves this readout to an even-more impressive 4.1%.
With Britain’s chronic accommodation shortage set to keep sales at Taylor Wimpey (LSE: TW) ticking higher, I believe that shareholders can look forward to increasingly-juicy rewards in the coming years. As industry experts predict a strong resumption in house price growth in the coming months, and a backcloth of low interest rates and government initiatives such as ‘Help To Buy’ bolster home sales, I believe that Taylor Wimpey is in great shape to deliver excellent earnings and dividend expansion.
This view is shared by the number crunchers, and Taylor Wimpey is anticipated to report a chunky 29% bottom-line improvement in 2015 alone. The company has vowed to return swathes of cash to its stakeholders in the coming years, and consequently the construction play is expected to provide a 9.1p per share dividend this year, a figure which produces a monster yield of 6%.
And with earnings expected to rattle 13% higher in 2016, Taylor Wimpey is predicted to lift the dividend still further to 9.8p. Such a projection propels the yield to an eye-popping 6.4%.