Dividend cuts from many of the Footsie’s previously-reliable payout picks have shaken the faith of many an income chaser over the past few months.
From banking giant Barclays and engineer Rolls-Royce through to mining play Rio Tinto, a spate of FTSE 100 stocks have been forced to slash their dividends in light of battered balance sheets and worrisome earnings outlooks.
With this in mind, I’ve scoured the FTSE Small Cap (INDEXFTSE: SMX) for a cluster of alternative stock stars that are a great bet to keep on delivering bumper dividend flows.
Bolstered by strong domestic demand for its industrial, retail and office space, I believe A&J Mucklow Group (LSE: MKLW) is in terrific shape to keep its progressive dividend policy chugging higher.
With the City expecting solid earnings growth in the near-term and beyond, Mucklow is anticipated to fork out a chunky 21.5p per share dividend for the year to June 2016, throwing up a 4.7% yield. And a predicted 22.1p reward for 2017 drives the yield to an impressive 4.8%.
With demand from the insurance segment striding higher, I reckon professional services provider Charles Taylor (LSE: CTR) should also keep growing dividends at a terrific rate. And on top of generating terrific organic growth, the firm’s ambitious acquisition strategy should light a fire under shareholder returns too.
Its progressive dividend policy having been resurrected in 2014, the number crunchers expect Charles Taylor to pay a dividend of 10.4p per share this year, creating a meaty 3.7% yield. And the yield marches to 3.9% for next year thanks to a predicted 10.9p payment.
Keep on trucking!
Logistics play Stobart Group’s (LSE: STOB) decision to diversify away from its traditional haulage business continues to deliver the goods, its Aviation, Rail and Energy divisions reporting further breakneck growth in 2015. And in a further boost for income chasers, the company’s ongoing disposal drive is also creating plenty of cash to keep producing generous payouts.
The transportation play has kept the dividend locked at 6p per share for donkey’s years now, and the City doesn’t expect this to end in the near future. However, income seekers should sit up and take note of a juicy 5.3% yield lasting right through to the 12 months ending February 2018.
Despite current market difficulties, I reckon camera and lighting specialist Vitec Group’s (LSE: VTC) renewed investment in high-growth segments should help it navigate the worst of these travails and deliver splendid long-term returns.
On top of this, Vitec Group is also bolstering its earnings prospects through a steady stream of product releases. In light of these moves, the calculator bashers expect Vitec’s progressive dividend policy to churn out a 26.3p per share reward in 2016, creating a market-mashing 4.8% yield. And an estimated 26.6p payment nudges the yield to an even-better 4.9%.
Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Barclays and Rio Tinto. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.