The Motley Fool

2 growth and dividend bargains that could help you retire a millionaire

An exceptional trading update provided shares in Morgan Sindall Group (LSE: MGNS) with an extra shot of juice in Wednesday business.

The share was last dealing 4% higher on the day after advising: “Trading in the second half of the year has continued to be strong” and, as a result, “the group is on track to deliver a full year performance slightly ahead of its previous expectations.” The firm said that margin improvements at its Construction & Infrastructure and Fit Out divisions were responsible for the upgrades.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

In other good news, it advised of a further improvement in its committed order book. This stood at £3.8bn at the close of September, up 5% from the start of the year, and up 1% from three months earlier. Its regeneration & development pipeline was up 2% from the first half, it added, at £3.3bn.

And to round things off, the construction and regeneration giant said that it expected average daily net cash for the full year to come in above £100m, smashing its prior forecasts of not less than £75m.

A growth and income superstar

Yet despite its strong trading momentum Morgan Sindall remains undervalued by the market right now.

Earnings at the London business have been growing by strong double-digit percentages in recent years, and a further impressive advance, this time by 29%, is predicted by City brokers for 2017. And Morgan Sindall is anticipated to follow this with an extra 8% advance next year.

But despite its relentless share price ascent — today’s release sent Morgan Sindall to fresh record tops above £15 and means it has now doubled in value since the start of 2017 — a forward P/E ratio of 13.8 times, and a corresponding PEG multiple of 0.5, shows that the construction colossus remains brilliantly cheap.

And offering up another reason to invest, dividends are expected to keep rolling higher at a blistering rate too. Last year’s 35p per share payment is anticipated to rise to 43p in 2017, and again to 46.9p in 2018. Yields for these years clock in at a healthy 2.9% and 3.1% respectively.

I reckon Morgan Sindall is a share that could make you brilliantly rich in the years ahead.

Another scintillating share

Macfarlane Group (LSE: MACF) is another terrific all-rounder that could deliver stunning shareholder returns now and in the future.

The Glasgow business, which has also taken flight in recent weeks and struck its own record tops above 73p on Wednesday, saw turnover rocket 10% in January-July to £89.3m and pre-tax profit 27% to £2.5m. And it advised the seasonal uplift in the fast-growing e-commerce marketplace should underpin further progress in the second half of the year.

Reflecting these favourable conditions, City brokers expect the packaging specialist to record earnings jumps of 31% and 13% in 2017 and 2018 respectively. And as a result the business also emerges as a brilliant value play, sporting a prospective P/E multiple of 12.1 times and a sub-1 PEG reading of 0.4.

Meanwhile Macfarlane’s progressive dividend policy is expected to dish out rewards of 2.1p per share this year and 2.3p in 2018, meaning that yields for these years stand at a chunky 2.8% and 3.1%.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.