If you’re worried about whether you’ll be able to survive just on the State Pension when you finally come to retire, well, you probably should be.
A sum of £8,546.20 per year (that is, if you even qualify for the full amount) is all that the new pension scheme currently givesyou. And as the financial strains of a rapidly-ageing population worsen, the government’s ability to raise pensioner payouts in line with inflation will inevitably diminish, while the age at which Britons will be eligible to receive any payments is likely to head north of 70 within the next few decades.
As I said in a recent article, investing in stocks is absolutely critical to protect yourselves from a future living in poverty. It may sound dramatic, but given the pathetic size of the State Pension and the frankly-laughable yields on offer from cash accounts, this is very much the reality for millions of Britons.
One way to make it more likely that you can generate handsome investment returns in the years ahead is by investing in PageGroup (LSE: PAGE).
I’ve tipped the recruitment giant time and time again on the back of its sterling progress around the globe, its robust position in emerging markets in particular making me optimistic over its long-term profits outlook.
My confidence in PageGroup was certainly reinforced following the release of recent interim financials. The FTSE 250 firm saw pre-tax profit boom 18.1% between January and June to £67.2m, with strength in its overseas divisions offsetting the impact of current Brexit-related troubles in the UK.
The result encouraged it to pay another special dividend of 12.73p per share on top of the interim dividend of 4.1p per share (which was up 5% year-on-year). So it comes as no surprise that City analysts are forecasting a total dividend of 26.2p for 2018, up from 25.23p last year and a figure that yields a chunky 4.3%.
And it’s easy to see earnings — which are predicted to rise 17% this year — as well as dividends continuing to stream higher as PageGroup bulks up its global workforce. A forward P/E ratio of 19.7 times is expensive on paper, but in reality is pretty undemanding given the likelihood of it delivering titanic returns right up to when you are ready to retire.
Another income star
Countryside Properties (LSE: CSP) is another great dividend share from the FTSE 250 to consider buying today.
Shareholder rewards have gone gangbusters in recent years, culminating in the 8.4p per share dividend for the year to September 2017. Another hefty rise to 10.9p is predicted for the current year, meaning that investors can latch on to a juicy 3.4% yield. And for the shortly-arriving fiscal period a 4.1% yield is offered thanks to an estimated 13.2p dividend.
These forecasts are supported by an anticipated 29% annual earnings improvement this year and 20% in fiscal 2020, readings that also create a forward P/E ratio of just 9.1 times, making it ideal for value seekers.
One thing is for sure: the UK’s homes shortage is likely to get a lot worse before it gets better. And this means that specialists in new-build homes like Countryside are in great shape to keep delivering outstanding profits, and thus dividend, expansion for many years to come.
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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.