That’s why I’m so keen on owning shares in property companies instead, such as the FTSE 250’s Grainger (LSE: GRI), which describes itself as “the UK’s largest listed residential landlord.” If I buy shares in Grainger, my investment will be backed by thousands of properties so I will have achieved instant real estate diversification. Meanwhile, today’s half-year results from the firm suggest that buying shares in it could be a good idea for me.

Good figures

Compared to the equivalent period the year before, net rental income rose 33%, much of which came from the firm’s December acquisition of GRIP, which is a Private Rented Sector (PRS) portfolio of around 1,700 homes in London. But underlying like-for-like rental income grew by 3.7% too and profit before tax came in 7% higher. The directors showed their satisfaction and confidence in the outlook by increasing the interim dividend by 10%.

And the dividend has been a great success story for some time — up more than 180% over the past five years — which I see as an attractive rate of growth. Chief executive Helen Gordon explained in the report that Grainger’s strategy is to invest in “high quality” new rental homes for the mid-market in UK cities. The firm has 8,400 rental homes and on top of that, around 8,200 new homes are in the development pipeline. Gordon reckons the aim is to enhance shareholder returns “by delivering a step change in our net rental income and thereby support strong dividend growth.” 

The acquisition of GRIP and the properties coming through from the development pipeline should lead to a more than doubling of rental income “over the coming years,”  and the company expects that to lead to further “strong” growth in the dividend for shareholders. 

A positive outlook

The outlook is positive with the firm insisting that the investment case remains strong, “with growing positive structural drivers.” One trend, interestingly, is the receding competition from private buy-to-let landlords as they continue to exit the market. Grainger is in a “leading position” to benefit from the trends in the market, according to the company.

With the share price close to 264p, the price-to-book ratio runs just below two and the forward-looking dividend yield is about 2.6% for next year. Although the valuation doesn’t put the shares in the bargain bin, I think the firm’s growth strategy is encouraging. The anticipated growth in the dividend is attractive to me and I think the company has earned its rating. As long as the firm keeps expanding, I don’t think the rating will decline soon. I’m tempted to pick up a few of the shares for the long haul.

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In contrast, FTSE 100-member BP (LSE: BP) has a dividend yield of 6%. Although it comes with significantly greater risk than a cash ISA, its share price appears to offer a margin of safety. As such, it could be more appealing from a risk/reward perspective.

Alongside another dividend growth share which reported results on Wednesday, it could be worth buying for the long term, in my opinion.

Improving prospects

The stock in question is residential landlord Grainger (LSE: GRI). Its trading update showed it’s made a strong start to the financial year. It’s achieved 3.4% like-for-like growth on its Private Rental Sector portfolio in the first four months of the year. This suggests that customer demand remains high, and the company has a quality offering.

Grainger has made progress on its largest private rental sector scheme outside of London, with lettings progress at Clippers Quay in Salford ahead of schedule. It remains optimistic about its future prospects, and remains in a strong position to progress to its next phase of growth, according to its update.

With the business having raised dividends per share at an annualised rate of 20% in the last four years, it has a strong track record of income growth. Although it has a dividend yield of just 2.6% at present, it could become an increasingly appealing income share over the medium term.

Growth potential

As mentioned, BP’s dividend yield of around 6% is relatively appealing. The company’s recent update suggested its main divisions are performing well, while major investment in the last couple of years could provide the business with a growth catalyst over the medium term. This could help to boost divided payments, expected to be covered 1.5 times by profit in the current year. This suggests there’s sufficient headroom to raise shareholder payouts – especially since the company’s bottom line is forecast to increase by 11% this year.

Of course, BP’s financial outlook is highly dependent on operating conditions within the oil and gas sector. The volatility of the oil price means that the stock is likely to remain risky relative to other FTSE 100 shares, and especially when compared to a cash ISA. However, the income return potential on offer, as well as a price-to-earnings (P/E) ratio of around 12, suggests there’s a margin of safety. This could mean the risk/reward opportunity is favourable over a long-term period.

As such, for those who are able to invest over a multi-year timeframe, BP’s shares could hold greater appeal than a cash ISA. They may be riskier, but the return potential on offer appears to be significantly higher.

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Even if you’re still making a profit after all of that, you then have to face the risk of void periods, unexpected repair costs, and problem tenants.

This is what I do

I prefer to invest in listed property companies which operate on a much bigger scale. This normally means that the risks I’ve highlighted above are more manageable and have less impact on annual profits.

One example of this is Grainger (LSE: GRI), a FTSE 250 firm with a portfolio of almost 10,000 rental properties across the UK.

Grainger recently raised £347m from shareholders to help fund the purchase of the GRIP real estate investment trust. This REIT has a £696m PRS portfolio containing 1,700 housing units. The company expects GRIP to deliver an extra £32.5m of gross rents each year. This represents a 55% increase on Grainger’s 2017/18 gross rental income of £59.2m.

Growth focus

Grainger’s chief executive Helen Gordon has a strong focus on growth. Her aim is to build the company into the UK’s largest private rental provider. Such plans always carry a certain amount of risk, but the firm’s progress seems good to me, so far.

Debt levels have remained stable and the group’s focus on mid-market housing means that occupancy levels are high, at 97%. The firm has also recently been short-listed to build 3,000 new homes in London, on sites close to underground stations.

Grainger appears to have strong momentum. Its focus on rental should mean that cash flow stays strong, even if house prices fall. The forecast dividend yield for 2018/19 is modest, at 2.6%, but the payout is expected to grow strongly.

I can see a long-term opportunity here, although personally I prefer businesses with a stronger focus on income.

A 6% yield I’d buy

One example of the kind of property stock that I’d like to own is U and I Group (LSE: UAI). This developer specialises in urban regeneration projects, mainly in London, Manchester and Dublin.

The group’s developments tend to be mixed use, often combining office space, retail and residential property. Some are developed for long-term rental, while some are sold for a short-term profit.

The firm’s management tend to return surplus cash to shareholders each year, providing generous dividends. City analysts expect a payout of 13.4p per share this year, giving a forecast yield of 6.4%. However, my colleague Rupert Hargreaves believes the final payout could be greater.

Insider buying

The downside of this focus on dividends is that U&I’s net asset value has remained fairly flat in recent years, at about 280p per share. This could limit long-term share price gains. However, with the stock currently trading close to 200p, I think the valuation is low enough to leave room for a profit.

The firm’s board seem to share this view — since the end of August, deputy chief executive Richard Upton has bought £265,000 worth of U&I shares, taking his total holding to £6.7m. At current levels, I share Upton’s view that the stock is a buy.

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Considering all of the extra work that is required with buy-to-let investing, wouldn’t it be nice if you could buy shares in a company that gives you exposure to buy-to-let investing without all the extra work involved?

The good news is you can.

Largest landlord 

Grainger (LSE: GRI) is one of the UK’s largest landlords. It currently owns 9,000 homes across the UK with an extra 5,000 homes in the pipeline. The total size of the firm’s overall property portfolio is £2.3bn. The group has over 106 years of experience managing property as a professional landlord, and for the year to the end of September, the company reported net rental income of £43.8m.

As noted above, Grainger is in the process of creating 5,000 new homes across the UK, which should translate into rapid earnings and dividend growth over the next few years. It is investing a total of £1.2bn in private rented properties by 2020. As part of the strategy, today the business revealed that it has been shortlisted as one of the three companies by Transport for London (TfL) for a strategic partnership to help build 3,000 homes for rent around tube stations in the capital.

To help boost growth further, the company recently announced that it is buying out its Dutch partner in joint venture GRIP REIT. This £396m property portfolio expansion will be funded by a rights issue, increasing the size of the firm’s property portfolio by 1,700 homes.

Better than buy-to-let

I think Grainger is one of the best ways to get exposure to the UK’s residential property market, and today, you can buy shares in this business at a steep discount to the value of the company’s property portfolio. 

At the end of September, the group’s net asset value per share was 316p, although this excludes any impact from the GRIP REIT acquisition and rights issue. However, management believes this deal will be accretive to net asset value due to “additional value from asset management initiatives,” which is expected to offset “any immediate dilution” from the rights issue and acquisition costs.

Income investment 

On top of Grainger’s attractive valuation, the shares also support a dividend yield of 2.5%, which is not particularly outstanding. However, analysts are forecasting growth of 28% next year, which will take the yield to 3.2%. I also expect the value of Grainger’s shares to rise as the company progresses with its plans to expand its residential portfolio and rent roll.

In my opinion, considering the fact that the firm’s book value per shares has increased at a compound annual growth rate of 11.8% for the past six years, I reckon investors could see double-digit share price appreciation over the next few years, on top of the dividend yield.

That’s why I believe shares in this residential landlord are a much better investment than buy-to-let.

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Rupert Hargreaves owns no share 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.

One concern is that over the long term, I’d almost certainly have enjoyed better returns by buying dividend-paying FTSE 100 stocks and reinvesting the cash. And I’d have had to do a lot less actual work too. The other is the problem of diversification. I have one rental house, and if that one is performing badly (though being vacant or having a problem tenant), there’s nothing else boost my income.

But renting properties, either residential or business, can still be very profitable, so how would I go about it if I started again? I’d go for pooled real estate investment businesses, particularly investment trusts.

Overlooked bargain?

I examined Hammerson (LSE: HMSO) earlier this year, soon after the on-off merger with Intu Properties had come to nothing. I thought it was a good investment then, but the share price has since gone into a bit of a slump — the shares are down 18% since the start of 2018.

That surely reflects the general weak sentiment towards property prices in general and the retail sector specifically — Hammerson invests in business properties, focusing on shopping centres. A lot of retail stocks are similarly falling in price, as are our listed housebuilders — despite the latter being strongly cash generative and paying some of the best dividends around.

I see that as a mistake by the markets, and I reckon Hammerson shares are oversold. We’re looking at forward P/E multiples near the Footsie’s long-term average of around 14, but this is a company that is expected to see its dividend yield hiked to around 6%.

The earnings growth of the past few years looks set to flatten out this year and next, and that must also be contributing to the weak share price performance. But I see it as a buying opportunity.

New development

Grainger (LSE: GRI), which bills itself as “the UK’s largest listed residential landlord and leader in the UK private rented sector,” is a way into the residential market that I like the look of.

Though its share price has had a modest year so far in 2018, its 3% rise is still ahead of the FTSE 100’s 7% fall. And over five years, Grainger shares are up more than 40% (while the Footsie has managed a meagre 6%).

On Friday, Grainger revealed its latest acquisition, of a 108-home build-to-rent development in Tottenham Hale, North London, for approximately £41m. Grainger will forward fund the development, to be carried out by Waterside Places, and it’s expected to provide gross yields of around 5.5% to 6% — which looks attractive to me.

Planning consent already exists, though there are a number of outstanding conditions — but Grainger expects those to be satisfied and construction to start in early 2019, with completion anticipated for approximately two years later.

Grainger’s dividend yields are modest at around 2%, but they’re progressive. And the stock’s overall yield makes it look like another attractive property option to me.

The post Buy-to-let? I’d buy this Real Estate Investment Trust instead appeared first on The Twelfth Magpie.

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• How are these FTSE 250 growth and dividend stocks so cheap?

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The stock was dealing just 0.5% higher at pixel time. But such a dull response is hardly a surprise given the ‘wait and see’ approach investors are taking following the frantic buying and selling activity of recent sessions.

In its bubbly release Grainger — the country’s largest listed private landlord — advised that it has “seen good demand for our rental homes and strong rental growth” during the four months ending January. Like-for-like rental growth was up 4.1% in the period, improving from expansion of 3.4% a year earlier.

And on its private rental sector (or PRS) homes, an increasingly-important segment for the Newcastle business, like-for-like rental growth stood at 3% during October-January versus 2.8% a year earlier. Grainger noted “continued strong demand for our rental offering” here in the period.

Elsewhere, residential sales for the four months ended January were stable year-on-year at £29m, it said.

Stunning dividend growth

The FTSE 250 firm has raised dividends at an impressive rate in recent times, even though reliable earnings expansion has remained elusive (indeed, dividends have more than doubled during the past five years). City brokers do not expect either trend to cease just yet either.

In the 12 months to September 2018 a 45% earnings improvement is forecast. And this is expected to underpin a 5.3p per share dividend, up from 4.86p last year.

And despite predictions of a 5% earnings reversal in fiscal 2019, Grainger is still predicted to supercharge the payout to 6.3p. And so a decent-if-unspectacular yield of 1.9% right now leaps to 2.2% for next year. I believe the strong demand for its homes should keep on driving dividends skywards too.

Emerging market master

I reckon now could be a sage time to pile into Ashmore Group (LSE: ASHM) as well. The business is due to release first-half financials tomorrow (Thursday, February 8), and this could lead to a fresh flurry of buying activity.

Last time around Ashmore impressed with news in January that assets under management improved by $4.5bn in the three months ended December, to $69.5bn, thanks to net inflows of $3.6bn and positive investment performance of $900m. The result smashed past broker expectations and reassuringly, sales growth was delivered from “a broad range of clients.”

And the FTSE 250 business advised that more is to come, commenting: “Our 2018 outlook is for another year of outperformance across the range of emerging markets asset classes.” This doesn’t shock me as returns from assets in these far-flung regions continue to outperform.

Just like Grainger, Ashmore may not fit the bill for many growth investors, despite its bright long-term outlook. Sustained profits expansion is expected to remain elusive for some time yet, the business predicted to print a 20% bottom line decline in the year to June 2018. Things are expected to pick up from next year though, a 13% earnings improvement being forecast for fiscal 2019.

However, income chasers may well want to invest in the asset manager given the delicious dividend yields on offer.

The 16.65p per share reward forked out over the past few years is finally expected to rise in the present period, to 17p, meaning a chunky yield of 4.1%. And the dial rises to 4.2% for fiscal 2019 thanks to an expected 17.4p dividend.

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• How are these FTSE 250 growth and dividend stocks so cheap?

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.

Therefore, Shell‘s (LSE: RDSB) forecast growth rate for dividends could be a clear catalyst to push its share price higher. As well as this, the company appears to offer improving operational prospects as well as a low valuation.

Rising dividends

The recent update from Shell showed that its medium-term outlook is better than previously expected. It anticipates that free cash flow will increase to between $25bn and $30bn by 2020. This is $5bn higher than the previous estimate and could mean that the business has scope to pay a higher dividend to its investors.

Furthermore, the oil price has moved higher in recent months. This could act as a further catalyst on the company’s financial performance and ability to pay a higher dividend. Since the company is also seeking to reduce its leverage, it may also become a lower risk and more sustainable business. This could make the reliability of its dividend much higher and lead to a premium valuation being placed on the company.

Valuation

With Shell trading on a price-to-earnings growth (PEG) ratio of 1.6 and having a dividend yield of around 6%, it appears to offer excellent value for money. It also seems to be improving its business model to some extent. Asset disposals may create a more streamlined and efficient business that is better able to deliver sustained profit growth in future. And with a dominant position in LNG (liquefied natural gas) following the BG acquisition, the company’s outlook appears to be bright.

Dividend growth potential

Also offering scope for a rising dividend is the UK’s largest listed residential landlord Grainger (LSE: GRI). It released a strong set of full-year results on Thursday, with adjusted earnings increasing by 40% and its net asset value per share rising by 5.6%. It continues to see significant growth opportunities for the private rented sector, with it having secured £651m of opportunities under its current strategy.

Although Grainger has a dividend yield of 1.7% at the present time, its shareholder payouts are covered over three times by profit. This suggests that dividend growth could be high over the medium term, with investor payouts set to increase by over 15% in the current financial year.

Certainly, the outlook for the UK property market may be somewhat uncertain. However, Grainger has a dominant position within the industry and with demand expected to remain robust for rental properties as house prices continue to move higher, the company appears to have significant total return potential in the long run. As such, now could be the perfect time to buy it.

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Peter Stephens owns shares in Shell. The Motley Fool UK has recommended Royal Dutch Shell B. 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.

Last year’s dividend was raised by 5.2%, after an 8.2% hike the year before, and forecasts suggest a further 4.9% uplift this year followed by 6.5% for the year to March 2019.

That would be very attractive even with relatively low current yields, but Hogg Robinson is way ahead of that too, with forecasts suggesting yields of 3.5% this year and 3.8% next.

The firm, which describes itself as a “global B2B services company specialising in travel, payments and expense management,” revealed first-half results on Thursday which were pretty much in line with expectations.

New growth strategy

With revenue down 1% (5% at constant exchange rates) and underlying pre-tax profit down 7% (10% at CER), underlying earnings per share dropped 6% — but that was put down mainly to the rollover impact of some client losses and sales slowdown, together with “planned investment in strategic priorities.“

The interim dividend was lifted by 6%, while net debt dropped by £0.9m to £30.1m — and I’m not really bothered by a debt figure of that level for a company with a market cap of £250m.

Chief executive David Radcliffe called it “early and positive results from our new strategy for growth, the first phase of which has seen us invest in the future of our business,” adding that the firm has enjoyed “a pleasing number of new blue-chip client wins.“

We’re looking at a forward P/E of 11.3 this year, dropping to 9.3 next year when EPS is predicted to grow by 21%, and that looks like bargain territory to me.

Faster rises

There’s an even more impressive dividend progression on show from Grainger (LSE: GRI), the UK’s largest listed residential landlord — though it’s currently offering more modest yields.

Grainger paid out 2.04p per share in dividends in 2013, and just three three years later the annual payment had more that doubled to 4.5p (and that was covered four times by earnings). Forecasts indicate further rises of 9.1% this year and a whopping 15% next year.

Granted that would provide a yield of only around 2%, largely because the share price has soared by 150% over the past five years, but it’s setting the scene for an income stream which could compound nicely in the coming years.

Expansion

The firm’s latest news is of a private rented sector acquisition after it exchanged contracts to forward fund and acquire Gilder’s Yard in Birmingham, which comprises 156 new purpose-built rental homes, for approximately £28m. Grainger expects to earn a gross yield of 7% over cost once the development is stabilised.

That comes after the £30.5m acquisition of a 139-home rental development in Milton Keynes, and a build-to-rent project of 375 homes in Salford for £80m, both in August.

At the interim stage at 31 March, net debt stood at £791m, but a loan-to-value ratio of 36% means I’m happy enough with that, and a reduction in cost of debt to 3.6% (from 3.9% six months previously) is satisfying.

Net rental income in the period grew by 11%, with pre-tax profit up 13%, and I see the firm’s strategy of cost-effective expansion as very attractive for a long-term investment. I see a serious cash cow in the making.

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Alan Oscroft 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.

Every investor loves dividends, but no investor likes being on the receiving end of a dividend cut, which is usually a painful experience. 

I believe that the best way to avoid such a situation is only to buy the market’s best dividend growth stocks. Specifically, companies that already support attractive yields but with room for payout growth are, in my view, the best income buys as the chances of a dividend cut are significantly reduced. 

Residential landlord Grainger (LSE: GRI) is one such example. Over the past five years, Grainger’s dividend per share has increased from 2p to 4.9p, a compound annual growth rate of 19.6%. And there’s plenty of room for further payout growth as the dividend is currently covered 2.6 times by earnings per share. 

Dividend growth champion

Some investors might be put off by the firm’s low dividend yield of only 1.8%, which is around half of the market average. However, if the payout continues to expand at a double-digit percentage every year, it won’t take long for the yield to hit a more respectable level. 

For example, City analysts have pencilled in a prospective dividend of 5.7p per share for the fiscal year ending 30 September 2018, up 16% year-on-year giving a yield of 2.1% at today’s prices. According to my calculations, if the payout grows at this rate for the next five years, it will have risen to 12p by 2023 for a yield of 4.5% at today’s prices. 

A payout of 12p per share by 2023 is a realistic target as the firm is set to report earnings per share of 12.8p for the current financial year. Assuming management can grow earnings per share at a rate of 5% per annum for the next five years, dividend cover will remain below 1.4 times. 

Hidden dividend champion 

Luceco (LSE: LUCE) might fly under the radar of most investors, but that does not mean that you should ignore the business. 

The company manufactures and distributes  high quality and innovative LED lighting products, and business is good. For the six months ended 30 June, revenue rose 26% year-on-year and adjusted profit before tax leapt 63%. Net debt fell from £48m to £26m giving management confidence to introduce an interim dividend payment of 0.8p per share. Since these results, the firm has spent £10m to buy Kingfisher Lighting, a nationwide UK supplier of exterior lighting products. 

City analysts believe that Luceco can grow earnings per share at a rate of 20% or more per annum for the next few years. I believe that, if anything, this target is conservative. The group is highly cash generative, and the market for LED lighting is still growing. 

As earnings grow, so will the dividend. For 2017 a total payout of 2.1p is projected rising to 2.6p for 2018. And just like Grainger, while Luceco’s dividend yield of 1% today might not look that attractive, the payout has plenty of room to expand. 

For 2017, the dividend of 2.1p will be covered an estimated 5.1 times by earnings per share. If the dividend continues to grow at a rate of 25% per annum for the next five years, it will hit 8p by 2023 giving a yield of 3.6% at today’s prices.

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Rupert Hargreaves owns no shares mentioned. The Motley Fool UK has recommended Luceco. 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 declared: “We have delivered a strong trading performance in the second half of the year, with good results from sales and tightly controlled operational and finance costs.” As a result, it predicts adjusted earnings in the 12 months to September to rise to approximately £70m, from £53.1m a year ago.

Grainger noted that sales of vacant properties were around 2% ahead of the September 2016 year-end vacant possession value, and during the 11 months to August, like-for-like rental growth across its portfolio registered at 3.7%.

Meanwhile, its private rented portfolio has reported growth of 3.2%, while the firm has witnessed annualised rental growth of 4.4% in its regulated tenancy portfolio.

Safe as houses

Grainger has a pretty erratic earnings history, certainly in recent times, and City analysts aren’t exactly falling over themselves to declare a recent upturn in the company’s bottom line – a 35% decline is pencilled in for fiscal 2017.

Still, this isn’t expected to prove an obstacle to the residential landlord keeping its progressive dividend policy on track. Grainger has hiked dividends at a compound annual growth rate of 18.6% over the past five years, and is expected to lift the reward to 4.83p per share in the outgoing period, from 4.5p in 2016.

And supported by an expected 5% earnings rise in the forthcoming year, the company is anticipated to introduce another meaty dividend rise, to 5.73p. However, yields over at Grainger are not likely to get hearts racing right now. These clock in at 1.9% and 2.2% for 2017 and 2018, respectively.

However, while Grainger’s operations – like its dividend yields – may not be the most exciting, the company provides the sort of stability that all income chasers crave. And with its strategic shift towards the private rented sector impressing so far, and its cost-cutting programme also clicking through the gears (it is on course to hit its £27.5m overhead reduction goal for the outgoing year), I believe the FTSE 250 giant remains a hot investment destination.

Mouth-watering yields

I also reckon Charles Taylor (LSE: CTR) is a great selection for both growth and dividend chasers.

You see, with the professional services provider increasingly spreading its tentacles far and wide, revenues at the business continue to shoot skywards. Between January and June, these rose 36.1% year-on-year to £100.7m. Charles Taylor also remains busy on the acquisition trail to keep business rolling in; just this month it sucked up compensation insurance claims administrator Metro Risk Management of the US for a fee that could rise to £1.8m.

Although Charles Taylor is predicted to endure an 8% earnings dip in 2017, the small cap is expected to snap back with a 6% rise in 2018. And the company’s sunny long-term profits outlook is expected to keep driving dividends skywards over the next couple of years at least – the 10.5p per share reward of 2016 is predicted to pound to 11p this year, and to rise again to 11.7p next year.

As a result, yields clock in at a formidable 4% and 4.3% for this year and next.

The post 2 dividend growth stocks that could make you ridiculously rich appeared first on The Twelfth Magpie.

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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.