One share which has fallen more than most in recent weeks is FTSE 250-listed Sirius Minerals (LSE: SXX). It’s down around 37% from its price in early August, following disappointing news. Could it be worth buying alongside another FTSE 350 share, which delivered an investor update on Thursday following a period of share price declines?

Growth potential

The company in question is sports-betting and gaming group GVC (LSE: GVC). Its third quarter trading update shows that it’s delivered strong growth and market share gains across all of its territories. Its online net gaming revenue has risen by 28%, with sports brands net gaming revenue up by 31%, and games brands net gaming revenue rising 19%. Group net gaming revenue increased by 14%, with strong growth in Italy helping to boost the performance of the business across Europe.

The integration of the Ladbrokes Coral businesses is progressing well. The company expects to report results for the full year which are in line with expectations. It remains optimistic about its prospects in the US, where it has entered into a joint venture in order to capitalise on the potential growth in sports betting.

Following a share price fall of 20% in less than three months, GVC now has a price-to-earnings growth (PEG) ratio of 1.4. This suggests that, while investor sentiment may weaken further, its long-term growth prospects remain impressive.

Uncertain future

Alongside a number of resources companies, the Sirius Minerals share price has come under pressure in recent weeks. Concerns surrounding the outlook for the global economy have weighed on the resources sector, with the prospect of an elevated trade war likely to remain a key risk facing the sector over the coming months.

As well as external risks, the company has also faced internal challenges. The cost of the whole Sirius Minerals project is set to increase by at least $400m, and potentially by as much as $600m. Cost overruns are, of course, nothing new when it comes to major projects. Investors though, have cooled in their stance on the company, with its share price now trading only marginally higher than it was at the start of the year.

However, with Sirius Minerals seeming to have a sound long-term growth strategy, short-term price falls could present buying opportunities. According to the company, its long-term financial outlook remains relatively positive. As such, it seems to offer a more appealing investment outlook, with its risk/reward ratio appearing to be relatively positive when compared to a number of its industry peers.

The post Think the Sirius Minerals share price is a bargain? Read this now appeared first on The Motley Fool UK.

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Peter Stephens owns shares of Sirius Minerals. The Motley Fool UK has recommended GVC Holdings. 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.

With that in mind, Unilever (LSE: ULVR) seems to be a worthwhile buy at the moment. It is set to raise dividends rapidly, although it is not the only company expected to do so.

Improving performance

Over the next year, Unilever is forecast to grow its bottom line by 10%. That’s a strong rate of growth for such a large and diverse business. One reason for its relatively high growth rate is its exposure to the emerging world. It has invested vast sums of capital in promoting its operations in the developing world. While it has taken time for it to achieve a high degree of customer loyalty, it now appears to have done so. This means that volume and pricing growth could be ahead for the business.

Dividend potential

Rising profitability should allow the company to generate increasing dividends in future. For example, in the current year it is expected to record a rise in shareholder payouts of 8.9%, which is almost three times the current rate of inflation. With dividends being covered 1.6 times by profit, they could rise at a similar pace to profit growth in the long run without putting the company’s financial position into difficulty. Therefore, while the stock may have a dividend yield of just 3.1% right now, it could have exceptional dividend appeal for the long run.

Growth potential

Also offering impressive dividend growth potential is sports betting and gaming group GVC (LSE: GVC). It released a trading update on Thursday for the fourth quarter of 2017, with the company recording a net gaming revenue figure of €1,009m for the full year. This is an increase of 13% on the prior year. Its EBITDA (earnings before interest, tax, depreciation and amortisation) figure is expected to be at the top end of management expectations, while it remains upbeat about its future potential following the recommended transaction with Ladbrokes Coral.

With GVC’s dividend payments being covered 1.8 times by profit, it appears to have a sustainable dividend payment profile. Shareholder payouts are forecast to rise by 9.5% this year, which puts the stock on a dividend yield of 3.3%. With synergies and efficiencies from the Ladbrokes Coral deal set to be significant, the company’s income prospects appear to be upbeat. A larger business with more size and scale may have a competitive advantage over rivals, which could increase its rate of profit growth in the coming years.

The post Unilever plc isn’t the only dividend growth stock I’d hold for the next decade appeared first on The Motley Fool UK.

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Peter Stephens owns shares in Unilever. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended GVC Holdings. 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.

However, such investments are still out there. Here are two possible examples which could be worth buying now for the long term.

Strong performance

Reporting on Thursday was gaming company GVC (LSE: GVC). The business performed well in the third quarter of the year, with group daily net gaming revenue (NGR) rising by 10% versus the same period of the previous year. This performance was perhaps better than it appears at first glance, since the comparable period from last year was boosted by the final stages of the UEFA Euro 2016 tournament. Stripping out the effect of that tournament and the impact of Kalixa (which was disposed of in May 2017) means that the company’s NGR revenue increased by 18%.

Looking ahead, GVC is forecast to post a rise in its bottom line of 19% in the next financial year. This puts its shares on a price-to-earnings growth (PEG) ratio of just 0.7, which suggests that they offer high growth at a reasonable price.

In terms of its dividend potential, the company has a yield of 3.3% at the present time. However, dividends represent just 54% of net profit. Therefore, they could increase at a faster pace than profit growth without hurting the company’s financial stability. And with a growing market for its products as well as a sound strategy, now could be the right time to buy a slice of the business for the long term.

Dividend growth potential

Also offering the potential for high dividend growth in future years is support services company G4S (LSE: GFS). It is forecast to post a rise in its bottom line of 5% in the current year, followed by additional growth of 10% next year. This puts it on a PEG ratio of only 1.4, which suggests it is good value for money when the FTSE 100 is close to a record high. As such, its share price could move higher.

With a dividend yield of 3.5%, G4S is not one of the highest-yielding shares around at the present time. However, since dividends are covered twice by profit they could rise at a rapid rate. This could make the stock more popular among investors and help it continue the momentum that has seen it rise by 20% during the course of the last year.

With the support services sector experiencing some difficulties this year, G4S could become an increasingly volatile stock in the near term. Although its financial performance appears to be sound, investor sentiment towards the sector could deteriorate after a number of profit warnings have been released by companies within the same industry. However, in the long run G4S appears to have a potent mix of dividend, growth and value potential.

The post Time to get greedy with these 2 dirt-cheap dividend stocks? appeared first on The Motley Fool UK.

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• Why I think the HSBC share price could hit 2,000p by December

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended GVC Holdings. 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.