There’s plenty of evidence to suggest why the FTSE 100 should remain a great place for dividend hunters to go shopping in 2019 (and probably beyond, too).
But as I explained in a recent article, there’s no shortage of exceptional income stocks from outside the Footsie that could help you to make a fortune. In this article, I’m looking at some of the lesser-known big yielders that may boost your investment income.
Revenues are soaring
I’m not one to relish in others’ misfortunes but now could be a great time to pile into insolvency expert Begbies Traynor Group (LSE: BEG).
The British economy is listing and this AIM-quoted business is reaping the rewards of this fertile environment and revenues are rising at quite a pace. I’m not expecting demand for its services to die back either as, whatever Brexit path the country follows, some economic turbulence can be expected at least in the short-to-medium term.
I’m also encouraged by Begbies Traynor’s steps to build long-term growth through acquisitions. This month alone, its snapped up two businesses to bolster its operations, first with the takeover of transport-advice specialist Croft Transport Planning & Design, and then the purchase of insolvency practice KRE (North East) Limited.
City analysts are predicting strong earnings growth through the next couple of years and meaty dividend increases, too. This means that payout yields sit at an enormous 4.1% and 4.5% for this fiscal year and next, respectively.
Build a fortune
Another big yielder from the AIM market to sink your teeth into is Springfield Properties (LSE: SPR), the construction colossus sporting big figures of 3.7% for this year and 4.4% for the following year.
Time and again, I’ve lauded the Scottish housebuilder’s investment prospects thanks to the UK’s enormous homes shortage that’s keeping its newbuilds well bought. It’s a phenomenon that is powering profits steadily higher across the housing sector, and one that’s likely to remain in place for a long time yet given the lack of serious government inaction to ratchet up building rates.
In the immediate term too, the favourable lending environment is helping to keep homebuyer demand on the boil, and I’m not expecting this support to ebb away given the intensifying mortgage rate war being fought by Britain’s lenders. And this leads City brokers to predict that Springfield’s annual earnings should keep growing by double-digit percentages at least for the next few years.
An added bonus with both Begbies Traynor and Springfield Properties as that both firms sport very-appealing valuations right now, i.e. forward P/E ratios of just 7.5 times and 9.4 times, respectively. This is a snip given these secret investment stars’ potential to deliver brilliant earnings and dividend growth now and for many years into the future. I reckon they’re both great stocks to load up on right now.
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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.