Are you on the hunt for some big-paying dividend shares that don’t cost the earth? If the answer is yes, I think these three titans could be right up your street.
Ring the bells
The recovery in investor appetite that’s been pushing the housebuilders higher in 2019 may have pushed Bellway’s (LSE: BWY) share price 14% higher since the bells rang in New Year’s Day, but I would consider the business to still be grossly undervalued by the market.
A forward P/E ratio of 6.4 times is dirt-cheap on paper and is at odds with the resilience of the business in the toughest conditions that the industry has faced for decades. Indeed, just this month Bellway announced that revenues swept 12% higher in the six months to February, led by a rise in both completion numbers and average selling prices (by 5.6% and 6.5% respectively) in the period.
City analysts believe the FTSE 250 firm has what it takes to keep growing earnings over the next couple of years and are thus predicting additional annual dividend growth for this period, to 147.7p per share for fiscal 2019 and 154.5p for next year. These projections yield a mammoth 5.2% and 5.4%.
Georgia on my mind
Georgia Healthcare Group (LSE: GHG) doesn’t carry the same sort of yields as Bellway but, if you’re seeking brilliant dividend growth in the years ahead, it’s a share that’s certainly worth your consideration.
City analysts expect the small-cap to pay a maiden dividend of 1.5p per share in 2019, resulting in a yield of just 0.7%. But the payout is expected to explode to 2.7p next year and this pushes the yield to 1.2%.
Financials released this month showed EBITDA up 23% in 2018, a figure that underlines just why the number crunchers are confident of scintillating dividend growth over the medium term. The firm certainly can’t be considered a flash in the pan as its expanding, integrated healthcare offering addresses the needs of an increasingly-wealthy Georgian populace.
It’s no shock that Georgia Healthcare Group is expected to report a 57% earnings explosion this year alone. And this also leaves it dealing on a sub-1 forward PEG reading of 0.3.
Fizzing dividend growth
It’s grown total payouts at a compound annual growth rate of around 9% over the past five fiscal years, underpinned by a sustained record of profits growth, and latest financials suggest to me that it has plenty left in the tank. According to the Fruit Shoot and Robinsons manufacturer, organic revenues (excluding the sugar tax) still rose 1.5% in the three months to December, illustrating the enduring popularity of its labels in even tough times like these.
A prospective P/E ratio of 15.6 times is quite undemanding given Britvic’s great growth record, in my opinion, and City predictions that earnings should keep expanding through the next couple of years at least. And predicted dividends of 29.5p and 31.4p per share for fiscal 2019 and 2020 respectively, figures that yield 3.2% and 3.4%, rubber-stamp the company as a sweet treat to buy today.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Britvic. 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.