There’s never been a better time to be an income investor. Dividends continue to spike and they are expected to hit fresh record highs in 2019. The London stock market is awash with great shares that may help you build a formidable second income stream, and the ones I mention below could well see their share prices springing higher in the coming days. Come and take a look.
Dig this goldie
If Centamin (LSE: CEY) can prove that it’s still moving away from the production problems of 2018 then it’s possible that its share value could fly next week.
The precious metals play’s problems at its Sukari asset in Egypt hit production hard last year, although a much-improved fourth quarter (when output leapt 17% from the prior three months) has fed speculation that it’s on the road to recovery.
News of fresh progress, then, when Centamin reports full-year financial on February 25 could help it to add to the meaty 25%-plus share price ascent of the past three months, gains that have been built on the back of strong bullion prices. Indeed, the mining giant could well receive an extra boost from a fresh rise in gold prices in the days and weeks ahead, as the UK creeps ever closer to the European Union exit date of March 29, and economic data from across Asia and Europe is likely to remain pretty dour.
Centamin’s forward P/E ratio of 20.3 times doesn’t make it cheap, but I consider this to be a fair price given the quality of its assets (and particularly after the firm jacked up resource estimates at its gigantic assets in the Côte d’Ivoire earlier this month). Besides, an inflation-smashing 4% dividend yield for 2019 helps to take the edge off.
10%-plus dividend yields
Another top dividend share to keep an eye on this week is Taylor Wimpey (LSE: TW).
As a shareholder myself I will certainly be paying close attention, and I’m fully expecting another rosy set of comments on the condition of the new-build market when full-year trading numbers are unpacked on February 27.
At its last market update in January, Taylor Wimpey lauded the “solid forward sales indicators” that the favourable lending environment had underpinned, as well as its “excellent total order book” of £1.78bn, which provides it with belief that it can deliver another robust performance in 2019. Amidst a stream of favourable trading statements from across the rest of the country’s listed homebuilders since in the weeks since that announcement, I’m not expecting anything than another upbeat release.
The FTSE 100 firm might have seen its share price explode 23% since the turn of 2019 but Taylor Wimpey remains grossly undervalued in my opinion, and its prospective P/E multiple of 8.2 times provides ample space for fresh share price strength. In particular, another reassuring update could see an influx of dividend hunters given the builder’s gigantic 10.7% forward yield.
Royston Wild owns shares of Taylor Wimpey. 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.