Bad bet

Betting group GVC Holdings (LSE: GVC) enjoyed the briefest of stints on the FTSE 100, crashing out in early March. It was hit by the outbreak equine flu which led to cancelled race meetings, including Super Saturday at Newbury, that cost bookmakers up to £2m a day. Investors also took flight in March after the group’s chief executive and chairman dumped three-quarters of their shareholdings, worth £20m.

The long-feared (in the industry) Government cap on fixed-odd betting terminals from a maximum of £100 to £2 came into force on 1 April. At today’s price of 628p, GVC is down 45% from its year high. So why am I liking it?

Go West

The bad news is out there and now investors can focus on future prospects. These include gaining access to the US gambling market, now opening up after sports betting was legalised. GVC chief executive Kenneth Alexander reckons the US will be the world’s biggest regulated gambling market within five years and is targeting it via a 50:50 joint venture with MGM Resorts.

GVC, which owns the Ladbrokes Coral chain of bookmakers, is already the world’s largest gambling group. First-quarter underlying net gaming revenue rose 9%, driven by strong online revenues, although high street trading was flat. There was a surprise drop in winning margins, which means customers have been getting the better of the bookie, but that won’t last.

Buy the dip

The £3.66bn group now trades at just 9.5 times forecast earnings and offers a forecast yield of 5.6%, covered 1.7 times by earnings. Those are nice numbers. City analysts expect earnings to fall 22% in 2019, then rebound 18% next year. By then, the yield could be as high as 6.7%. Royston Wild thinks it’s a thrilling dip buy. Naturally, it’s a gamble. But what did you expect?

Now here’s an even cheaper FTSE 250 stock, with an even juicier yield. Builder Crest Nicholson (LSE: CRST) trades at just 7.7 times forecast earnings while offering an incredible forecast yield of 8.4%, with pretty decent cover of 1.5.

This combination is fairly common in the construction sector right now. For example, Taylor Wimpey trades at 8.5 times forward earnings and yields 9.6%. For Persimmon, the figures are 7.6 times and a whopping 10.3%.

Brexit blame game

Housebuilders are still making good money from the robust housing market, but sentiment has been knocked by Brexit. Also, everybody knows the market is propped up by the Government-backed Help to Buy scheme, recently extended to 2023 but for first-time buyers only. Be warned: some fear that after years of strong growth, global house prices could be set to crack.

Crest Nicholson is down 20% over the last year but its share price is in recovery mode. There may be no meaningful rally until our relationship with the EU is sorted, and that could take six months, possibly longer. Earnings are forecast to fall 12% this year. Still, there is that thumping yield while we wait for better times.

The post Are these 2 high dividend stocks the biggest bargains on today’s FTSE 250? appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Harvey Jones has no position in any of the 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.

Crest Nicholson Holdings (LSE: CRST) has given investors a bumpier ride than many housebuilders over the past 12 months. While Barratt Developments is up 24% over the past year, and both Bovis Homes Group and Persimmon are up around 37%, it has mustered growth of just 6%.

Best Crest

Investors aren’t too excited about today’s final results for the year to 31 October, with the stock down 0.5% at time of writing. The numbers were steady enough, with sales and joint ventures up 7% at £1.07bn, and pre-tax profits up 6% to £207m. Net cash fell from £77m to £33m.

Volumes rose just 2% at 2,935 homes, but chief executive Stephen Stone sees faster growth ahead. “Our new business divisions are continuing to grow, driving increases in sales outlets and underpinning our ambitious sales target of £1.4bn in 2019.”

Today’s report is more promising than last October’s, when Crest Nicholson warned that profits may come in at the lower end of guidance. The new-build housing market continues to be robust, sustained by strong demand, a benign land market and government policies to improve access to housing.

Dividend delight

What really catches the eye is the forecast valuation of just 7.3 times earnings, coupled with a price/earnings to growth (PEG) ratio of 0.7. Crest Nicholson has been hit by the slowing market in London, but elsewhere house prices continue to rise steadily.

City analysts expect earnings per share (EPS) growth of 9% in 2018 and 15% in 2019. Throw in a forecast yield of 7% and the investment case looks even stronger, unless you anticipate a property crash. For the record, management hiked the dividend by 20% today to 33p, nicely covered two times. Here are two more hot stocks that could make your fortune.

Cheers!

While Crest Nicholson has underperformed its otherwise buoyant sector, pubs and hotels chain JD Wetherspoon (LSE: JDW) has done the opposite, outperforming a troubled corner of the economy, which has punished rivals such as Greene King. The company’s stock is up a fizzy 36% over one year and 157% over five. Although it isn’t the only monster growth stock on the high street.

It is up 3% after today’s Q2 trading statement showed like-for-like sales rose 6% and total sales 4.3%. “As a result of better-than-expected sales, year-to-date underlying profit before tax is slightly ahead of our expectations,” the update said. But there was a proviso that “similar outperformance in the second half will be more difficult to achieve” due to tough comparatives.

Tiger Tim

Chairman Tim Martin included a lengthy swipe at those who predicted soaring food prices following the Brexit referendum. When he finally got onto Wetherspoon he warned that: “We face significant costs in the second half in areas which include labour, business rates and the sugar tax. There will also be some uncertainty as to the effects on our business of the FIFA World Cup.”

The stock currently trades at a forecast 18.9 times earnings, reflecting recent strong growth. EPS are forecast to hover between -2% and +2% over the next three years, sharply down from 43% in 2017. Today’s yield of 0.9% offers little compensation. You could buy it today, or maybe wait for a better entry point.

The post One bargain stock and one growth monster I would buy today appeared first on The Twelfth Magpie.

More reading

• What could an Andy Burnham government mean for these FTSE 250 stocks?
• Here’s the number-1 thing I look for in shares to buy
• 3 cheap FTSE 250 stocks to consider buying before the 2026 World Cup kicks off

Harvey Jones 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.

BDEVilled by uncertainty

The UK’s biggest housebuilder, Barratt Developments (LON: BDEV), has enjoyed a good 12 months, its share price rising 30% in that time. It is down 1% at time of writing after today’s trading update for 1 July to 12 November, but that seems a harsh response for a company I have previously labelled a FTSE 100 bargain.

Today’s report hails a “strong start to the year supported by a positive market backdrop”, with demand for new homes supported by wide availability of attractive mortgage finance. The sales rate has stayed firm at 0.74, exactly the same as in 2016, while total forward sales including joint ventures jumped 8.4% to £2.88bn. That equates to 12,843 plots, up from 11,733 last year.

Dividend delight

Investors have been handsomely rewarded, with the board proposing a record dividend payment of £348m, made up of a £173m final dividend and £175m special dividend, equivalent to 5.5% of its market capitalisation. CEO David Thomas said the outlook remains bright as operational improvements and improved margins should deliver a good performance in full-year 2018. It also expects to deliver “modest growth in wholly-owned completions”. That word “modest” may partly explain today’s share price dip, although it is worth noting that the market is down generally.

Barratt still looks like a buy to me, especially trading at a bargain 10.2 times forward earnings. It has delivered five consecutive years of double-digit earnings per share (EPS) growth (actually it was triple-digit in 2014) with another 5% predicted for 2018. By then, the yield is forecast to be a whopping 7%. Yes, I know the UK is riddled with economic uncertainty, house prices are high and interest rates rising, but I reckon these uncertainties are reflected in the price.

Falling bricks

FTSE 100-listed Barratt isn’t the only housebuilder updating the market today, FTSE 250 firm Crest Nicholson Holdings (LON: CRST) has issued numbers for the year to 31 October and here the market response has been harsher: its share price is down 5.36% at time of writing. Catching a falling knife is always tempting.

The headline numbers look positive with overall housing unit completions up 2.3% at 2,935 homes in 2017, average selling prices rising 5.4% to £391,000, EBIT margins consistent with previous guidance at the top end of the 18% to 20% range and return on capital employed approaching 30%.

London calling 

There was a slight dip in underlying sales rates for the year, which averaged 0.77 sales per outlet week against 0.81 in 2016, which reflects the increase in the group’s average selling prices and the softer central London market. Sales rates remain “generally strong” for properties below £1m.

Total forward sales of £391.4m are 13.6% higher than last year but some analysts have expressed disappointment, with Shore Capital calculating that Crest Nicholson’s profits before tax could now fall closer to £205m than the consensus £213m. However, the investment case looks strong to me, with forecast EPS growth of 7% in 2017 and 13% in 2018, a forward valuation of just 7.8 times earnings, and a forecast yield of 6.5% covered 1.9 times. I reckon the housing market stands on firm foundations.

The post Why I’d buy Barratt Developments plc and this other bargain growth stock today appeared first on The Twelfth Magpie.

More reading

• This beaten-down FTSE 100 dividend share just jumped 11% in a week but still yields almost 5%
• £1,000 buys 380 shares in this 5.4% yielding passive income stock
• Down 33% with a 5.6% dividend yield, is this FTSE 100 stock a once-in-a-decade buy?
• Why are these FTSE 100 growth and dividend stocks so cheap?
• Down 65% but yielding 6.7% – is this beaten-down UK stock now a generational bargain?

Harvey Jones 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.

Construction plays Taylor Wimpey (LSE: TW) and Crest Nicholson (LSE CRST) have both seen their share values surge by around a third since the turn of the year, a theme shared by other industry heavy-hitters like Persimmon and Barratt Developments.

Sure, persistent fears of a potential housing bubble and the possibility of Bank of England rate hikes continue to do the rounds. And in recent weeks, concerns over builders’ margins looking ahead have halted the stocks’ stunning momentum. But the relentless stream of positive trading updates across the sector suggests that Taylor Wimpey and its peers should remain upwardly mobile for some time yet.

Meanwhile, property advertiser Rightmove (LSE: RMV) has seen its share value explode by almost three quarters so far this year, and I would not expect thisgrowth to slow any time soon as buoyant homebuyer demand drives listings — the business saw UK residential property listings leap 10% between January and June, to 1.1 million.

What can we expect in 2016?

Well, data from the British Bankers’ Association (BBA) released yesterday once again highlighted the supply/demand crunch that continues to drive house prices skywards. The organisation advised that new home loans totalled £14.2bn in October, up from £13.1bn in the previous month and representing the highest monthly figure since before the 2008/2009 financial crash.

The BBA advised that “consumers remain confident and their incomes are growing,” adding that “mortgage rates are at multi-year lows and people are snapping up the very competitive deals being offered by banks.”

And conditions are likely to receive an extra boost as fears over the global economy keep British interest rates anchored around record lows, potentially pushing projections of increases into 2017 and beyond. Such a scenario obviously plays into the hands of the housing sector as well as those servicing the industry.

So what does the City think?

Given the positive state of the housing market, Taylor Wimpey is expected to follow an estimated 32% earnings advance this year with a 15% bounce in 2016, creating an ultra-low P/E rating of 12.4 times.

And Crest Nicholson offers similarly-splendid value for money — a 22% rise in the year to October 2015 is anticipated to be followed by a 24% improvement in fiscal 2016, resulting in an astonishingly-low earnings multiple of 8.6 times.

These exceptional earnings prospects, combined with both firms’ astonishing cash-generative qualities, are expected to keep dividends spiralling higher in the coming year and beyond. Indeed, a dividend of 27.3p per share is forecast for 2016 at Crest Nicholson, yielding a market-bashing 5.4%. And Taylor Wimpey carries a brilliant yield of 6% for next year thanks to a projected 11p reward.

Over at Rightmove, a 15% earnings rise for 2015 is expected to edge up to 16% in 2016. And while a prospective earnings multiple of 28.5 times may appear heady, I would argue the company’s proud record of delivering double-digit growth year after year fully merits this premium. And I expect earnings expansion at the firm — along with that of Crest Nicholson and Taylor Wimpey — to keep rocketing higher in line with British homes demand.

The post Can Homes Plays Taylor Wimpey plc (+36%), Crest Nicholson PLC (+33%) & Rightmove Plc (+73%) Build On 2015’s Gains? appeared first on The Twelfth Magpie.

More reading

• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?
• This FTSE 250 stock could storm back into the FTSE 100 with an 80% rise, 1 broker says
• This 7.7% yielding dividend stock trades at a 13-year low – time to consider buying?
• £10,000 in these 3 FTSE 250 stocks could generate £982 of passive income over the next 12 months!

Royston Wild owns shares of Taylor Wimpey. The Motley Fool UK has recommended Rightmove. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

In the short run, this lack of capital gain could continue. After all, Prudential has a new management team and, while the company’s strategy is sound in terms of aiming to provide financial products to a growing middle class across Asia, the slowdown in the Chinese economy is likely to add to a degree of uncertainty among investors.

This, then, could be an excellent time to buy a slice of Prudential. Not only does it now trade on a price to earnings (P/E) ratio of 13.6, it is forecast to grow its bottom line by 14% this year and by a further 9% next year. In addition, Prudential pays out just 36% of profit as a dividend and, while this means that it has a yield of just 2.6%, dividend rises could prove to be a catalyst to push the company’s share price higher over the medium to long term.

Meanwhile, Santander (LSE: BNC) has disappointed to a much greater extent than Prudential this year, with its shares being down 34% since the turn of the year. Although the bank is very well-diversified and has exposure to a number of major growth markets across the globe, Brazil continues to be a key market for the business and its poor economic performance has been a drag on Santander’s financial performance.

Looking ahead, investor sentiment in Santander could remain weak due to Brazil’s downbeat economic prospects, but for long term investors this presents an opportunity to buy Santander while it trades on a P/E ratio of just 10.3. Certainly, there is a risk of further falls in the short term, but with Santander being in a relatively strong financial position following its placing last year, it appears to be a sound long term buy.

Similarly, southern-focused house builder Crest Nicholson (LSE: CRST) also appears to be a strong buy at the present time. Its trading update for the full year (released today) shows that high levels of employment and good mortgage access are creating favourable trading conditions, with the company stating that unit completions for the full year are due to rise by around 8% to 2,725.

Furthermore, Crest Nicholson remains on target to meet its goal of generating £1bn in revenue by 2016 and £1.4bn of revenue by 2019. And, while interest rate rises may be a cause for concern for the company’s investors, its price to earnings growth (PEG) ratio of 0.3 indicates that a very wide margin of safety is on offer.

Looking ahead, Crest Nicholson is forecast to become a stunning income stock, with dividends per share set to rise by 43% next year. This puts it on a forward yield of 5.4% and, with dividends still due to represent just 46% of profit in 2016, further dividend rises are very much on the cards.

The post Are Banco Santander SA, Prudential plc & Crest Nicholson Holdings PLC ‘Screaming Buys’? appeared first on The Twelfth Magpie.

More reading

• Thinking about a SIPP for retirement? Here are 3 starter stocks to consider
• How much do you need in a Stocks and Shares ISA to generate £100 a day in passive income?
• FTSE 100 value stocks: where has the market become too pessimistic?
• 4 steps to building a £38,456 retirement income with ISA shares

Peter Stephens owns shares of Prudential. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

GlaxoSmithKline

Pharmaceuticals giant GlaxoSmithKline (LSE: GSK) is, slowly but surely, slaying the ghost of patent expirations across key labels. The Brentford firm has seen earnings slip during the past three years, as brands like Seretide have battled the relentless entry of generic competition, and a further 20% drop is forecast for 2015.

Still, I believe the stunning progress of GlaxoSmithKline’s product pipeline should deliver a strong bottom-line rebound from next year. Sales at the firm’s Pharmaceuticals division rose 1% during July-September as its hot new labels took off — indeed, total sales of new Pharmaceuticals and Vaccines drugs clocked in at £591m in the period.

GlaxoSmithKline’s recovering revenues outlook is expected to drive earnings 12% higher in 2016, leaving the firm changing hands on a P/E ratio of 16.3 times — a reading around or below 15 times is considered decent value. With GlaxoSmithKline doubling-down on strong growth areas like HIV, where sales leapt 65% in the third quarter, and healthcare demand rocketing higher in emerging regions, I believe the medicines giant is a terrific growth bet.

Crest Nicholson

Housebuilders like Crest Nicholson (LSE: CRST) have proved to be one of the most reliable selections so far this year 2015 thanks to the UK’s worsening housing crunch. Indeed, the steady stream of positive sales and order book news across the industry shows no signs of slowing, and Crest Nicholson itself advised in June that revenues surged 38% during the six months to April, to £333.2m.

The one blot on the landscape for the housing sector has been the spectre of interest rate rises and the consequent effect on mortgage affordability. But with ONS data this week revealing a marked slowdown in the British economy, expectations of any rate hike have been well and truly kicked into the long grass.

On the supply side, the growing reluctance of homeowners to put their houses on the market is adding to a natural accommodation shortage. At the same time a combination of rising wages and favourable lending conditions is sending demand through the roof. Not surprisingly Crest Nicholson is expected to record earnings expansion of 23% and 25% for the years to October 2015 and 2016 correspondingly, creating mega-cheap P/E multiples of 11.2 times and 9 times. I consider this a steal.

British American Tobacco

Cigarette giant British American Tobacco (LSE: BATS) cheered-up the market this week when its latest financial release smashed expectations. The London firm saw underlying sales advance 4.2% during January-September, obliterating broker expectations of between 2.6% and 3.2%.

Once again the tobacco play had its five ‘Global Drive Brands’ — a stable which includes the likes of Dunhill and Lucky Strike — to thank for this solid performance. Volumes of these products galloped 7.2% during the period, helping to push their market share 1% higher from a year earlier. And British American Tobacco saw volume growth of these goods speed up to 9.5% during July-September.

The problem of adverse currency movements pushed group revenues 6.5% lower in the nine-month period, and British American Tobacco warned that “performance will moderate” in the final quarter as foreign exchange problems persist.

But with demand for the firm’s brands still taking off in developing regions, and British American Tobacco entering hot growth segments like e-cigarettes, I believe earnings should bounce back next year and beyond following an expected 1% dip in 2015. Indeed, a 7% rebound is predicted for 2016, leaving the smoking giant dealing on a P/E ratio of 17.4 times.

The post Why Earnings Are Set To Launch At GlaxoSmithKline plc, Crest Nicholson Holdings PLC And British American Tobacco plc appeared first on The Twelfth Magpie.

More reading

• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?
• Double a state pension thanks to dividend shares? Here’s how it could be done
• How much second income am I aiming for with £20,000 in this superb FTSE 100 dividend star?
• In the event of a stock market crash, is this one of the best stocks to consider buying?
• Here’s how much you’d need to invest in 5%-yielding dividend shares for £2,000 a year of passive income

Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

The numbers led CML chief economist Bob Pannell to comment that “mortgage lending is currently enjoying its best spell since 2008, on the back of a pick-up in house purchase and remortgage activity over the summer months.”

And fresh positive jobs data this week suggests that lending should continue to rise nicely thanks to Britons’ improving wealth levels. On Wednesday the Office of National Statistics advised that average wage growth clocked in at its strongest for more than six years during May-July, at 2.9%. On top of this, a 41,00 -rise in the number of employed people helped drive the jobless rate lower again, to just 5.5%.

The potential impact of rate hikes by the Bank of England continues to hang over the housing sector, and the aforementioned employment data has lent further support to the idea. But the Monetary Policy Committee (MPC) remains wary of the risks of a Chinese ‘hard landing’ on the domestic economy, not to mention the impact of patchy conditions in the eurozone. Consequently the MPC voted by a resounding 8-1 at its latest meeting to keep the benchmark locked at record lows.

These problems are not likely to disappear anytime soon, and with inflation also continuing to flatline, there is no real pressure on the Bank to lift rates in the near future.

Homebuilders heading higher

This backdrop naturally play into the hands of the UK’s major housebuilders, with the shocking supply/demand imbalance in the homes market already driving earnings through the roof at these firms.

Construction play Taylor Wimpey (LSE: TW) advised in July that revenues advanced more than 12% during January-June, to £1.3bn, a result that pushed pre-tax profit a third higher to £238m. The business advised that “sales rates have been above expectations and sales price growth has increased” in recent months.

Taylor Wimpey is not alone, with bubbly news from Crest Nicholson (LSE: CRST) and Bellway (LSE: BWAY) providing further evidence of the housing market’s strength. The former saw revenues explode 38% higher during October-April, to £333.2m, while its rival announced in August’s update that home completions rose 13.2% in the year to July 2015.

Lending activity to keep on rising

But it is not just the homebuilders who are benefitting from these conditions, as a steady increase in the value of houses boosts loan sizes doled out by the likes of Lloyds (LSE: LLOY). Britain’s biggest mortgage lender — which currently provides 1 in 4 new home loans — advised in July that gross mortgage lending hit a colossal £16bn during the first six months of 2015.

And I believe rising affluence levels up and down the country should keep the number of loans being signed off at Lloyds moving skywards, great news for sales across the UK’s homebuilding sector.

The post Rampant Mortgage Lending Should Keep Investors Buying Lloyds Banking Group PLC, Taylor Wimpey plc, Crest Nicholson Holdings PLC & Bellway plc! appeared first on The Twelfth Magpie.

More reading

• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• Is there any value left in Lloyds shares now they’re over £1?
• This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?
• Prediction: this UK growth stock will outperform Lloyds shares over the next 5 years
• Barclays, NatWest or Lloyds shares: which is the better pick for a UK retirement portfolio?

Royston Wild owns shares of Taylor Wimpey. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

The institute’s latest monthly house price balance report showed that 44% more surveyors reported price rises in July, up from 40% in the prior month and representing the highest level for a year. RICS noted that “the shortage of housing inventory worsened further during July, with the average number of properties for sale per surveyor slipping to a record low.”

With demand from new homebuyers also heading through the roof, RICS commented that “all areas of the UK are projected to see sizeable house price gains over the next twelve months.”

Constructing colossal earnings growth

Such news will come as music to the ears of housebuilders like Barratt Developments (LSE: BDEV) and Crest Nicholson (LSE: CRST), who the City expects to continue ratcheting up double-digit earnings growth in the years ahead.

And this comes as little surprise — Barratt Developments advised in its latest financial update that total completions leapt 10.8% during the 12 months to June 2015, to 16,447 units, while total forward sales galloped 29.6% higher to £1.8bn.

Crest Nicholson also noted in June that completions climbed 3% during October-June, to 1,124 homesteads, while forward transactions ascended 26% year-on-year to £436.4m. Although the country’s housebuilders are aggressively building up their land banks, the firms simply cannot construct at a rate to meet insatiable buyer demand, a scenario that should keep driving selling prices higher.

Ascendent estate agents

But it is not only the construction sector that is benefitting from ascending house prices. Property surveyors Countrywide (LSE: CWD) noted in June that, although uncertainty surrounding the recent general election stunted the number of transactions at its estate agents, that activity should pick up during the second half of the year.

A steady rise in the number of mortgage approvals certainly lends credibility to this theory — these hit a 15-month high of 44,488 in June, the British Banking Association (BBA) advised late last month.

Enjoying the fruits

And the major lenders like Barclays (LSE: BARC) are on the front line to enjoy the fruits of rising employment levels and wage increases on loan numbers, factors that helped drive total loans and advances at Barclays £500m higher in January–June to £217.5bn.

I fully expect earnings at all the firms I have mentioned to remain supported by surging house prices.

The post 44 Reasons To Buy Barratt Developments Plc, Crest Nicholson Holdings PLC, Countrywide PLC And Barclays PLC appeared first on The Twelfth Magpie.

More reading

• Why Barclays shares could have a huge second half of 2026
• Up 50% in a year! That’s not the only reason I’d consider buying Barclays over Nvidia stock today
• This beaten-down FTSE 100 dividend share just jumped 11% in a week but still yields almost 5%
• Barclays shares could soon soar another 21%, according to the latest price target
• After a 160% rally, major brokers still see more gains for Barclays shares. Here’s why

Royston Wild owns shares of Barratt Developments. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Furthermore, the likes of shipping company, Clarkson (LSE: CKN), and housing provider, Crest Nicholson (LSE: CRST), have seen their share prices soar in 2015 by 46% and 44% respectively. And looking ahead, both they and Barclays could deliver even more outperformance over the medium to long term.

A key reason for this is their superb growth rates. While most FTSE 100 stocks are set to grow their bottom lines in the mid to high single digits in each of the next two years, Barclays is expected to post growth of 34% in the current year, followed by growth of 23% next year. That’s clearly a superb rate of growth and should act as a catalyst on the company’s share price – especially because a number of its index peers are enduring highly challenging periods at the present time.

Similarly, Clarkson and Crest Nicholson are also forecast to post earnings growth rates that are considerably higher than those of the wider index. In fact, Clarkson’s net profit next year is set to be 31% higher than it was last year, while Crest Nicholson’s is due to be 49% higher over the same time period. Those are superb growth rates and, despite this, both stocks are not fully valued even though their shares have performed so strongly this year. For example, they trade on price to earnings growth (PEG) ratios of 1 and 0.4 respectively which, alongside Barclays’ PEG ratio of 0.4, indicate that all three stocks offer very wide margins of safety. In other words, their risk/return ratios are hugely appealing.

Furthermore, all three stocks offer an excellent yield, too. For example, Barclays is set to yield 4% next year, while Clarkson and Crest Nicholson have forward yields of 2.9% and 4.9% respectively. As such, they seem to offer a potent mix of growth, value and income and, as such, have the potential to see their share prices bid up by a range of investors seeking differing characteristics from their holdings.

Of course, it could be argued that because they have performed so well in 2015 that there will be some profit taking. And, while this may be the case moving forward, the reality is that demand to buy into such strong futures should outweigh the pressure put on the share price by existing investors cashing in on excellent share price performance. Therefore, while the future for the FTSE 100 and the European economy is somewhat uncertain, Barclays, Clarkson and Crest Nicholson are likely to be top performers in the long run, which makes now the ideal time to buy a slice of them.

The post 3 Stocks On The Cusp Of Stunning Returns: Barclays PLC, Clarkson PLC And Crest Nicholson Holdings PLC appeared first on The Twelfth Magpie.

More reading

• Why Barclays shares could have a huge second half of 2026
• Up 50% in a year! That’s not the only reason I’d consider buying Barclays over Nvidia stock today
• Barclays shares could soon soar another 21%, according to the latest price target
• After a 160% rally, major brokers still see more gains for Barclays shares. Here’s why
• How many Barclays shares do I need to buy to get a £1,000 passive income?

Peter Stephens owns shares of Barclays. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Lloyds Banking Group

At first glance Lloyds (LSE: LLOY) (NYSE: LYG.US) may not be a clear candidate for those seeking irresistible income prospects. Sure, the bank’s revived dividend policy may be expected to churn out a dividend of 2.8p per share in 2015, but this creates only a yield of 3.2%. While this may be a respectable figure, it still falls short of the FTSE 100 average of around 3.4%.

Still, for those playing the long game I believe Lloyds is likely to prove a lucrative stock selection — indeed, the total payout is expected to leap to 4.2p next year, thrusting the yield to a delicious 4.9%. A formidable balance sheet should soothe any fears over these payouts being met — indeed, Lloyds’ core tier 1 ratio climbed to 13.4% as of March, one of the strongest in the sector — while steady growth in retail revenues and stringent cost-cutting should also underpin brilliant payout expansion.

Standard Life

I believe that insurance giant Standard Life (LSE: SL) is in great shape to keep delivering market-bashing dividend yields. With savers in Britain putting away more and more for their retirement — Scottish Widows recently announced that more people aged 30 or over are saving since the firm began compiling data ten years ago — and Standard Life boosting its distribution network and product suite across the globe, earnings would appear set to ignite looking further ahead.

Given these factors, for 2015 the City expects Standard Life to fork out a total payout of 18.8p per share, up from 17.03p in 2014 and yielding an impressive 3.9%. And this rises to around 4.2% for next year amid forecasts of a 20.2p reward. So although dividend cover falls below the security benchmark of 2 times throughout this period, I believe the insurer’s brilliant cash-generative qualities should assuage any fears — underlying cash climbed 21% in 2014 to £408m.

Crest Nicholson Holdings

Thanks to Britain’s enduring housing shortage, I reckon housebuilders like Crest Nicholson (LSE: CRST) should continue to enjoy splendid earnings growth well into the future, a promising sign for dividend hunters everywhere. Indeed, sector peer Persimmon’s (LSE: PSN) latest update today underlined the inherent strength of the industry — revenues advanced 12% during January-June, to £1.34bn, while completion volumes advanced 7% to 6,855 homes.

This follows Crest Nicholson’s own update last month which showed turnover jump by more than a third in November-April, to £333.2m. Against this backcloth I reckon analyst projections of massive dividends are well founded — the Chertsey firm is expected to raise last year’s 14.3p per share payout to 19.8p in the year concluding October 2015, yielding a decent 3.9%. And predictions of a 27.6p dividend in 2016 powers this yield to an eye-popping 4.9%.

Esure Group

I am convinced car insurance provider Esure (LSE: ESUR) should become an increasingly-attractive dividend stock as premiums across the sector tick steadily higher once again. Sure, the motor market remains exceptionally competitive, but the company’s expansion into hot segments should help to keep revenues ticking higher in my opinion and therefore light a fire under its dividend outlook.

On top of this, Esure’s May confirmation that its “financial position remains strong” should cheer income chasers — cash was stable around £25.1m at the close of 2014. The insurance play is expected to shell out a 15.1p per share payment in 2015, down slightly from last year’s 15.3p but still yielding a whopping 5.9%. But with premiums expected to push earnings higher again from 2016, a 16.1p payout is currently projected, boosting the yield to 6.3%.

The post What Are The Hottest Dividend Stocks Money Can Buy? Lloyds Banking Group PLC, Standard Life Plc, Crest Nicholson Holdings PLC & Esure Group PLC? appeared first on The Twelfth Magpie.

More reading

• Is there any value left in Lloyds shares now they’re over £1?
• Down 63% and yielding 6.3%! Is this FTSE 100 share a brilliant bargain?
• This 5.5%-yielding income stock’s at a 13-year low and cheap to-boot! Time to consider buying?
• Prediction: this UK growth stock will outperform Lloyds shares over the next 5 years
• Barclays, NatWest or Lloyds shares: which is the better pick for a UK retirement portfolio?

Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.