Today I am taking a look at four lesser-known dividend darlings.
The Harry Potter franchise has become the gift that keeps on giving for Bloomsbury Publishing (LSE: BMY), with the recent launch of a new illustrated range helping to drive book sales. But the boy wizard is not the be-all-and-end-all for the firm — the publisher also boasts a range of top-level titles across the cookery and adult book divisions. And elsewhere, Bloomsbury is expanding in the digital publishing space to deliver long-term growth.
The City expects Bloomsbury to lift an anticipated dividend of 6.3p per share for the year to February 2016 to 6.7p in the current period, creating a chunky yield of 4.5%. And a predicted return to earnings growth in 2018 is expected to produce a 7p payment, yielding a splendid 4.8%.
I reckon that floor coverings specialist Headlam Group (LSE: HEAD) is also a great bet to deliver strong dividend expansion well into the future. Exceptional market share growth in the UK is helping to propel revenues steadily higher — like-for-like sales leapt 6.3% in the first eight weeks of 2016 — while an end to the current cycle of huge capital expenditure also bodes well for income seekers.
The number crunchers expect Headlam to raise last year’s 20.7p per share dividend to 20.9p in 2016, before hiking the payment again next year to 21.7p. Consequently the business boasts smashing yields of 4.2% and 4.3% for these years.
A financial favourite
Thanks to its abundant cash flows, I reckon insurance play Chesnara (LSE: CSN) should also provide excellent dividend growth this year and beyond. The company has made a variety of shrewd acquisitions like that of Waard Group to bolster its continental exposure, and remains on the hunt for further deals in the UK and The Netherlands to drive earnings.
The Square Mile expects Chesnara to raise 2015’s dividend of 18.94p per share to 19.5p in 2016, creating an eye-watering yield of 6.3%. And the yield jumps to 6.5% for next year thanks to projections of a 20p reward.
Thanks to its exceptional record of generating earnings growth, Lavendon Group (LSE: LVD) has long proved a winner for those seeking dividend growth year after year.
Indeed, demand for the firm’s ‘powered access equipment’ — equipment that enables people to work at height — continues to shoot reliably higher around the globe. Lavendon saw group revenues surge 13% higher during January-March, the business announced today.
The City shares my bullish take, and expects Lavendon Group to raise 2015’s payment of 5.4p per share to 5.7p this year, and again to 6p in 2017. The hardware operator subsequently sports jumbo yields of 4.3% and 4.5% for 2016 and 2017 correspondingly.
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.