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3 Blue-Chip Beasts Offering Terrific Bang For Your Buck: HSBC Holdings plc, BT Group plc And Legal & General Group Plc

Today I am lauding the investment appeal of three FTSE-listed favourites.

HSBC Holdings

I have long sung the praises of banking colossus HSBC (LSE: HSBA) (NYSE: HSBC.US) despite the impact of intense regulatory pressure, exacerbated by its recent tax-related misdeeds in Switzerland. Indeed, I believe that the firm’s extensive operations spanning the high-growth regions of Asia, not to mention its hefty exposure to the improving economies of North America and Britain, leave it in rude shape to record exceptional earnings growth.

The financial giant announced just today that pre-tax profit leapt 4% during January-March, to $7.1bn, driven by a terrific performance at its investment bank. And like me, the City expects the bottom line to keep on surging, and have pencilled in earnings bounces of 20% and 4% for 2015 and 2016 respectively. These numbers leave HSBC changing hands on P/E multiples of just 11.7 times prospective earnings for this year, and 10.9 times for 2016, just above the benchmark of 10 times which marks excellent value.

And expectations of plump profit growth is anticipated to keep the bank’s progressive dividend policy comfortably on track, and a total payment of 50 US cents per share in 2014 is predicted to rise to 52 cents this year, and again to 55 cents in 2016. Consequently HSBC sports monster yields of 5.3% for 2015 and 5.6% for 2016.

BT Group

I am convinced that BT’s (LSE: BT-A) (NYSE: BT.US) attack on the multi-services entertainment sphere should reap bountiful rewards in the years ahead. The company is taking the fight to its rivals on all fronts, its massive fibre-laying programme turbocharging its broadband customer base while its BT Sport channels are proving a hit with couch potatoes across the country. And its £12.5bn takeover of EE also looks set to blast consumer revenues higher in coming years.

The telecoms play has long been a darling for those seeking earnings growth year after year, a trend which is expected to keep rolling — indeed, BT is expected to follow an anticipated 5% rise for the year concluding March 2015 with growth of 4% and 6% in 2016 and 2017 correspondingly. These projections create attractive earnings multiples of 14.5 times for this year and 13.7 times for 2017.

While it is true that BT may not be the most lucrative income pick at the present time, I expect the result of heavy investment in key growth areas to power payouts higher. Indeed, an estimated 12.8p per share payment for fiscal 2015 is expected to leap to 14.7p this year, and again to 16.6p in 2017. Consequently the yield leaps from 3.2% for 2016 to a market-beating 3.6% for next year, and I believe similarly-meaty rises can be expected looking further ahead.

Legal & General Group

I believe that Legal & General’s (LSE: LGEN) aggressive acquisition programme, boosting its exposure to white-hot emerging markets and as well as its already-extensive financial product portfolio, should keep the bottom line growing at a stratospheric rate.

The number crunchers expect Legal & General to continue printing double-digit earnings growth in the medium term at least, with increases to the tune of 13% and 10% anticipated for 2015 and 2016 correspondingly. And these readouts produce juicy P/E ratios of 13.6 times for this year and 12.6 times for 2016.

Not surprisingly the insurance leviathan is expected to keep on lifting the dividend at a terrific rate, and a full-year payout of 11.25p per share last year is predicted to advance to 13.2p this year and again to 14.5p in 2016. These numbers leave Legal & General carrying yields of 5.1% and 5.7% for these years, and with surging business inflows driving the cash pile through the roof, I expect the payouts to keep on galloping higher.

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