Today I’m revealing a clutch of London stocks set to deliver stunning dividends in the near-term and beyond.
Shopping star
Cooling retail activity has hampered investor appetite for N Brown Group (LSE: BWNG) significantly in recent months. But while the British high street may be suffering some mild turbulence at present, I reckon N Brown remains a wise pick for long-term investors.
Niche brands like Jacamo and Simply Be are performing increasingly well — revenues here rose 15% and 16%, respectively, in the period to February 2016. Meanwhile N Brown’s vastly-improved online footprint should deliver robust revenues growth as e-commerce continues to expand.
And predicted dividends of 14.4p and 15p per share for 2017 and 2018, respectively, rubber-stamp my bullish view with projections that yield 6.1% and 6.3%.
Motoring ahead
An increasingly-favourable motor insurance market also makes Admiral Group (LSE: ADM) a hot stock selection, in my opinion.
The company’s car-related operations saw its customer base rise 5% during 2015, to 3.3m vehicles. And Admiral is also enjoying surging demand in Europe, with particular strength in Italy and France driving its continental customer base to 673,000 as of December.
With its price comparison websites also performing well — and especially in the hot North American marketplace — Admiral is expected to keep earnings heading higher, a great sign for income chasers.
Indeed, the insurer is expected to pay dividends of 114.5p per share for 2016 and 120.6p next year, figures that yield 5.8% and 6.1%.
Build a fortune
With the result of this month’s Brexit referendum very much on a knife-edge, Britain’s construction sector continues to toil. Indeed, the sector’s PMI reading registered at a three-year low of 51.2 in May.
Still, I reckon Kier Group (LSE: KIE) should continue to print solid earnings growth regardless of the result of the EU vote.
The company is well placed to benefit from rising infrastructure spend in the coming years, not to mention galloping housing demand — Kier generates around three-quarters of total revenues from these segments. And bulky order books here provide terrific sales visibility for 2016 and beyond.
Consequently the City expects Kier to shell out a dividend of 64.2p per share in the year to June 2016, yielding a splendid 5.2%. And the figure moves to 5.7% for next year thanks to an estimated 70.6p reward.
Order!
Like Kier, I reckon Carillion (LSE: CLLN) is also a corking construction play for dividend investors.
The Wolverhampton firm advised in May that new orders in the year to date had driven revenues visibility for 2016 to 94% from 84% at the close of 2015, underlining Carillion’s ability to grind out major contract wins with major private- and public-sector customers.
Thanks to its stunning long-term prospects, the City expects the construction play to lift the dividend to 18.9p per share in 2016, and again to 19.6p next year. Consequently Carillion sports market-mashing yields of 7% and 7.2% for these years.
