The Motley Fool

3 value stocks paying BIG dividends that I’d buy today

BBA Aviation (LSE: BBA) is a share which offers a terrific blend of big dividends and great value. For 2019 and 2020, it offers up chubby yields of 4.2% and 4.5%, respectively, while an anticipated 7% earnings rise for this year creates a forward P/E ratio of just above 15 times.

The US business and general aviation market may be crawling rather than rocketing higher, but sales at the flight support services play continue to grow ahead of the broader market. That’s because of the steps it’s taken to improve customer service and build its fixed base operator (FBO) network across the world.

Speaking of which, BBA has shelled out plenty via acquisitions to boost its geographical and operational wingspan, the latest of which in 2018 saw it snap up fuel and fuel-related services provider EPIC to bolster its core Signature FBO division significantly. What’s more, because of its explosive cash generation, the firm’s in great shape to keep investing both organically and through M&A to boost earnings.

Investors assemble

Dividend-seeking bargain hunters should also pay Cineworld Group (LSE: CINE) very close attention today.

As a shareholder of the cinema chain myself, I’ve long celebrated the electrifying impact Hollywood and its packed roster of superhero movies are having on box office takings all over the globe. The appeal of these audiovisual masterpieces was underlined by Imax chief executive Richard Gelfond last week who declared: “With a robust lineup of tentpole films ahead, like the highly-anticipated Avengers: Endgame we anticipate delivering our strongest box office year ever in 2019.”

Indeed, news that the latest outing for Captain America et al generated $1bn in ticket sales in its opening weekend, the first time such a milestone has ever been achieved, illustrates the immense profits-generating capabilities of such films.

It’s no shock to find City analysts forecasting a 19% earnings rise at Cineworld in 2019 then, a figure that creates a dirt-cheap prospective P/E multiple of 12.5 times. Throw big dividend yields of 4.2% and 4.6% into the bargain and I reckon the FTSE 250 firm is a cracking buy today.

Yields close to 6%

The broader advertising market may be under pressure but this isn’t likely to dent STV Group (LSE: STVG) and its ability to deliver splendid earnings growth, or so say the experts. An 11% bottom-line rise is forecast for 2019.

The broadcaster’s latest trading statement last week certainly gave fresh reason to be optimistic. In it, STV said that total advertising revenues are expected to have risen 1-2% in the first quarter, with a marginal drop in national sales anticipated to have been offset by ripping regional ad sales growth of 20-25% and digital ad growth of 15-20%.

What’s more, a decade’s best viewing performance in 2018 has carried over to the first quarter, the firm said, helped by soaring watching figures on the STV Player platform. It’s why City brokers are predicting a 13% profits rise in 2019, a projection that creates a forward P/E rating of just 8 times. Dividends will also keep climbing through to the end of next year too, resulting in monster yields of 5.6% for 2019 and 5.9% for 2020. I reckon STV is a stock that could help you to make a fortune in the years ahead.

Financial Independence, Retire Early

If you’ve ever dreamt of retiring early, or if you’re already retired and protecting your financial independence is your aim, then this could be the report for you!

We at The Motley Fool are pleased to offer you “The Foolish Guide To Financial Independence And Retiring Early” completely free of charge – simply click here to receive these expert insights and strategies.

Royston Wild owns shares of Cineworld Group. The Motley Fool UK owns shares of and has recommended BBA Aviation. 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.