Looking For Pounding Payout Potential? Check Out AstraZeneca plc, Kier Group plc, Marston’s PLC & De La Rue PLC

Today I am looking at four FTSE superstars poised to shell out huge rewards.


While it is true that AstraZeneca (LSE: AZN) faces further patent pressures across its pills portfolio, I believe that the company’s supercharged R&D operations — combined with galloping healthcare demand in developing regions — makes it a terrific long-term selection for those seeking formidable dividend prospects.

And in the meantime, AstraZeneca’s brilliant cash-generative qualities are anticipated to keep payouts bubbling along at brilliant levels. The London company is predicted to buck three consecutive earnings losses with a marginal 1% uptick in 2015, a result good enough to push the dividend to 285 US cents per share from 280 cents, or so say the City’s number crunchers. And with the payout predicted to be held at this level next year, the pharma giant sports a mammoth 4.4% yield through to end-2016.

Kier Group

Supported by expectations of splendid, double-digit earnings expansion this year and next, construction contractor Kier (LSE: KIE) is predicted to keep its progressive dividend policy firmly in business. The company has lifted the payout at a chunky compound annual dividend growth rate of 5.6% since 2010, and with a strong British economy likely to boost the number of contracts coming through the firm’s doors, I reckon Kier is in great shape to enjoy solid revenues growth looking well ahead.

The building and engineering play is reckoned to lift the full-year dividend to 61.1p per share for the year concluding June 2015, up from 57.53p in the previous year and producing a hefty yield of 4.2%. And this readout rises to a resplendent 4.5% amid projections of a tasty 66.5p reward.


Like Kier, pub operator Marston’s (LSE: MARS) is expected to enjoy chunky dividend growth in the years ahead, finally putting to bed the earnings travails of recent times. With the company’s restructuring drive boosting the number of new outlets and underperforming ones, and moves such as the acquisition of Thwaites beer operations boosting its exposure to the booming premium ale sector, I reckon the stage is set for both profits and payouts to keep marching on.

This view is shared by the calculator bashers, and Marston’s is predicted to raise a payment of 6.7p per share for the year concluding October 2014 to 7p for the current period, creating a juicy yield of 4.3%. And predictions of a further hike in 2016, to 7.4p, pushes the yield to an even-tastier 4.5%.

De La Rue

Money and passport printers De La Rue (LSE: DLAR) has been in the wars in recent times as challenging trading conditions have smashed the bottom line. Pre-tax profit dipped by more than a third in the year ending March 2015 to £38.9m, the Basingstoke business crimped by lower contract prices despite higher volumes, not to mention the issue of escalating paper costs.

Consequently De La Rue cut the full-year payout to 25p per share in 2015 from 42.3p in the years before. Still, the City expects the currency experts to keep the payment locked around these levels in both 2016 and 2017. Such projections create a barnstorming yield of 4.7%, and although investors should bear in mind the enduring market pressures facing De La Rue, the results of the 200-year-old banknote maker’s new strategic plan — which includes boosting investment in “higher growth and more profitable markets” — could make the business a top-drawer turnaround play.

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