At a time when Brexit is casting an increasingly large shadow over much of the London stock market, Nexus Infrastructure (LSE: NEXS) is a share I’m confident can still deliver brilliant returns, regardless of how Theresa May executes our European Union withdrawal.

Despite the political and economic malaise of the past two years, house-building in the UK has remained robust because of the simple fact that there aren’t enough homes to go around. An ever-increasing population means that over the long term, more and more houses will need to be built.

And this bodes well for Nexus, whose range of a broad variety of critical engineering services and products already provide it with great earnings visibility.

Latest trading details released last month underlined its resilience in even these most trying of times for the domestic economy. It advised that pre-tax profit still sprinted 25% higher in the 12 months to September, to £9.2m. A robust order book of £290m as of the close of the period, up 43% year-on-year, suggests that the bottom line should continue to swell.

Another growth opportunity

This isn’t the only reason to be optimistic over Nexus’s revenues outlook, though. Latest data from the Society of Motor Manufacturers and Traders today shows sales of plug-in hybrid and pure electric vehicles continued to leap in 2018, up 24.9% and 13.8%, respectively.

Britain needs to spend a fortune on upgrading existing architecture to meet the surging demand for these next generation cars. Through its eSmart Networks division — which was launched in 2017 and supplies charging infrastructure, battery storage and distribution network services — Nexus is therefore well-placed to capitalise on this growing market.

City analysts expect the firm to continue growing earnings by double-digit percentages in the medium term at least, and an 11% advance is forecasts for fiscal 2019. This means that Nexus can be picked up on a dirt-cheap forward P/E ratio of 9.2 times, inside the accepted bargain territory of 10 times, or below.

And it means the number crunchers also predict further excellent dividend growth. The engineer lifted the full-year dividend to 6.6p last year and is anticipated to hike it to 7.3p in this period, resulting in a chunky 3.8% yield.

Euro smash

Another little-known income star worth considering today is Summit Germany (LSE: SMTG), particularly for those concerned about the impact of Brexit now, and in the years to come.

While recent data shows that the Central European nation’s economy is also suffering a little turbulence at present, there also remains plenty of opportunity for real estate investment trust Summit to make a packet. In its most recent trading update, the AIM firm commented on “a lack of supply in the German commercial market,” an imbalance that means “rental demand is resilient and rent levels are increasing.”

City analysts are predicting another 3% earnings improvement at the business in 2019 and then pay another total dividend of 4 euro cents per share, meaning a meaty 3.6% yield. Throw a forward P/E ratio of 13.9 times into the equation, and I reckon that Summit Germany, like Nexus Infrastructure, is a great all-rounder to buy today.

The post Have £3,000 to spend? 2 unknown but amazing dividend stocks I’d buy for 20 years appeared first on The Motley Fool UK.

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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.

In 2018 the company is predicted to record another 5% earnings rise, laying the foundation for further payout growth. A dividend of 4.9 euro cents per share is currently forecast, up from 4.02 cents in 2017 and resulting in a decent 4.2% yield.

And with earnings expected to slip 3% higher next year a 5 cent dividend is being tipped, thus nudging the yield to 4.3%.

An added bonus is that Summit Germany can be picked up on a forward P/E multiple of 13 times. This is shockingly cheap in my opinion given the progress the company is making to capitalise on the strong German real estate market — pre-tax profit more than doubled last year to €128.7m. It’s also cheap due to the shortage of residential and commercial developments that should keep earnings on an upward slope well into the future.

Rental royalty

Yields over at VP (LSE: VP) may not outstrip those of the broader market. But the rate at which the business is lifting dividends should put the company well and truly on the radar for those seeking brilliant ways to fund their retirement.

Supported by a chubby record of double-digit percentage earnings growth, the specialist equipment rental group has been able to lift the annual payout by 80% in the five years to fiscal 2017. And when it reports for the period to March 2018, it is expected to put in a similar profits performance, meaning the dividend is also predicted to move to 25.2p per share from 22p the year before.

City analysts are expecting profits to keep piling higher in the medium term at least, with rises of 19% and 9% forecast for fiscal 2019 and 2020 respectively. Accordingly dividends are expected to maintain their northward march also, so figures of 29.3p for this year and 31p for next year are being bandied about by the boffins.

These projections yield 3.3% and 3.5% respectively. However, chunky yields and the prospect of additional dividend hikes down the line are not the only cause for celebration as current payout projections also look pretty safe. Indeed, they are covered between 3.2 times and 3.3 times through to the close of fiscal 2020, sitting comfortably inside the accepted safety terrain of 2 times or above.

The patchy outlook for the UK construction market means that VP isn’t without its degree of risk. However, I would consider an ultra-low forward P/E ratio of 9.5 times to be reflective of this.

Besides, I believe investors can take confidence from the company’s resilience in spite of these trying conditions. It noted in April that it “has experienced consistent demand from its key infrastructure, construction and housebuilding markets.” And the impact of recent acquisition activity reinforces my belief that profits, and thus dividends, should keep on rising.

The post 2 dividend stocks that are perfect for retirement appeared first on The Motley Fool UK.

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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.

It advised that net profit surged 57.3% between January and June, to €12.9m. This was despite rental income falling 1.7% to €28.4m year-on-year, while funds from operations dropped to €17.5m, from €18.2m previously.

Meanwhile, Summit Germany declared that EPRA net asset value improved to €474.4m from €466.3m in the corresponding 2016 half.

Boring but beautiful

And Summit Germany remained pretty busy on the acquisition front in the first half to lay the groundwork for future profit growth. It paid €100m in the summer to snap up a property portfolio in Wolfsburg, comprising 80,000 square metres of fully let properties generating net rent of around €7.9m.

But splashing the cash is not the only game in town, with the Guernsey-headquartered business also busily hiving off non-strategic assets to improve the quality of its holdings (it has made €17.6m worth of disposals in the year to date).

Meanwhile, the property powerhouse also added two new joint ventures in H1 to develop 95 residential units in Berlin. Summit Germany sources almost 90% of all rents from the country’s major cities, and half from Germany’s five biggest metropolitan areas (namely Berlin, Frankfurt, Stuttgart, Hamburg and Dusseldorf). And this gives the company terrific income potential given the improving strength of the German economy and housing shortages in these cities.

Now while the business is expected to endure another heavy earnings slide in 2017 (a 31% decline is currently predicted), City brokers expect it to move back into growth with a 5% advance next year. And current projections make Summit Germany a great value share, the firm sporting an undemanding forward P/E ratio of 15 times.

There is also plenty for dividend chasers to get excited about, with predicted dividends of 4.04 euro cents per share this year and 4.23 cents in 2018 yielding 3.7% and 3.8%, respectively.

I am convinced the brilliant structural opportunities open to Summit Germany could generate excellent shareholder returns now and long into the future.

Sweet style

Supergroup (LSE: SGP) is another stock I am tipping to provide excellent investment riches in the years ahead.

The owner of the much-loved Superdry clothing brand is playing a blinder in terms of developing its global brand, expanding its geographic footprint and improving its position in the critical e-commerce segment.

It has seen like-for-like sales rise for 10 successive quarters, with growth averaging around 12%. The company currently operates in almost 150 countries and is ratcheting up its operations in white-hot growth markets like the US and China to keep revenues tearing higher.

So the number crunchers are predicting meaty earnings growth of 13% and 15% in the years to March 2018 and 2019 alone, leaving Supergroup dealing on a prospective P/E ratio of 17.2 times and corresponding PEG reading of 1.3.

I reckon this is a steal given the likelihood of lasting, and electrifying, earnings growth beyond the medium term. And with Supergroup also expected to keep its progressive dividend policy on track (payouts of 31.3p and 36.3p per share are forecasted for this year and next, yielding a handy 1.9% and 2.2%, respectively), I reckon the fashion star deserves a serious look right now.

The post Could these value dividend shares be millionaire-makers? appeared first on The Motley Fool UK.

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• Here’s what £15,000 invested in Taylor Wimpey shares on Thursday is worth today…
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Supergroup. 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.