Holders of Polymetal International (LSE:POLY) would have been toasting the waves of risk-aversion that battered financial markets in recent weeks, its share price leaping to levels not seen since February on the back of a resurgent bullion price.

And there’s plenty of reason to expect gold to remain well bought as Brexit talks reach their end game, as the second Cold War ramps up, as the war of words over international trade goes on, and as fears of overheated equity markets grow.

With earnings at Polymetal expected to keep flying through the medium term at least, City brokers are predicting bulky dividends of 44 US cents per share and 52 cents for 2018 and 2019 respectively, figures that yield a chunky 4.7% and 5.6%.

European invader

The significant growth potential for value shopping brands makes B&M European Value Retail (LSE: BME) another great dividend share to buy today.

The FTSE 250 retailer doesn’t boast the same sort of monster yields as Polymetal, its own readings clocking in at 2.1% for this year and 2.4% for next year. But the rate at which the firm is growing its dividends, assisted by some fairly stunning double-digit earnings advances, still makes it a brilliant income share, I feel.

The full-year payout leapt almost 25% in the year to March 2018, for example, to 7.2p per share. And City boffins are predicting that it will swell to 8.5p this year and to 9.8p next year.

I’ve previously tipped B&M to thrive as it expands rapidly across the UK and Germany. And news last week that it was continuing its European invasion with the takeover of French cut-price retailer Babou boosted my enthusiasm. Its trading model is terrific and should be as popular with Gallic shoppers as those in its other territories.

A hot dip buy

I feel Hill & Smith (LSE: HILS) is another great dividend growth to pile into today despite the release of disappointing financials more recently.

In August, investors took fright after the crash barrier builder advised that short-term delays to some UK road projects, allied with the impact of bad weather, caused profits to fall short of expectations in the first fiscal half.

Still, thanks to its robust order book, Hill & Smith advised that it expects a good second half of 2018. And looking further down the line, the profits outlook looks good too, as infrastructure investment in Britain as well as the US is only heading one way, and that is northwards.

So I fully expect dividends, which have relentlessly risen for about a decade-and-a-half, to continue rising. The City agrees and last year’s 30p per share reward is anticipated to rise to 31.8p in 2018 and again to 33.1p next year, figures that yield a beefy 3.3% and 3.4% respectively.

The post Have £2,000 to spend? 3 FTSE 250 dividend stocks I’d buy today and never sell appeared first on The Twelfth Magpie.

More reading

• If a 50-year-old puts £1,000 a month into a SIPP, here’s what they could have by retirement
• Not sure what a SIPP is? 3 reasons it could pay to know!
• Up 15%, B&M shares are leading the FTSE 250 higher! Is the comeback on?

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of B&M European Value. 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 the fast lane

Hill & Smith is a major player in the supply of safety barriers, bridges, signage and various other types of road furniture, and it has thrived in recent years thanks to robust investment in Britain’s transport grid.

Just yesterday the West Midlands company advised that it achieved its best-ever trading performance in 2017 when revenues rose to an all-time high of £585.1m which was up 5% at constant currencies, and underlying profit before tax boomed to a record peak of £78.5m, a 12% improvement at stable exchange rates.

Hill & Smith applauded the impact of recent M&A activity as well as recent restructuring on last year’s result, not to mention the benefits of its broad geographic footprint as the business is a major player in the UK, US and France.

The group is confident of making further heady progress in the current year too, despite the presence of some political and economic uncertainty in some of its regions, advising: “Prospects in our core US and UK infrastructure markets, as well as the other geographies in which we operate, continue to be positive for 2018 and beyond.”

Earnings have risen by double-digit percentages in each of the past four years. And while profits growth is expected to cool in the medium term with a fractional rise forecast by City brokers for 2018 and a 4% increase is expected in 2019, I am confident that Hill & Smith can pick up the pace thereafter.

The firm sources almost nine-tenths of total profit from its British and North American marketplaces, and business is likely to keep rolling in at a brisk pace given rising the increasing investment (particularly in the US) to renew, repair and replace crumbling road networks.

Too risky?

While I reckon Hill & Smith is in great shape to deliver sustained earnings growth, and thus is worthy of a slightly-elevated forward P/E ratio of 17.8 times, the outlook is much less uncertain for Sirius Minerals.

This of course is hardly a newsflash, the mining industry is fraught with an endless catalogue of operational and market-based hazards, after all. But Sirius is particularly dangerous right now. There is no doubting the promise of its colossal POLY4-producing potash project on the North Yorkshire Moors, but as of today, and indeed the next few years, all investors can bank on is hope that the asset will prove to be the monster earnings generator that the company hopes.

In the meantime a lack of revenue streams is putting huge strain on the digger’s balance sheet, and cash resources fell to £468.5m at the close of 2017 from £665.3m a year earlier. It’s not outside the realms of possibility that further fundraising will be needed at some stage should timescales begin to slip.

Sirius Minerals has certainly been making impressive progress over the past couple of years to get the Woodsmith Mine and its related infrastructure in place. However, it still has an extremely long way to go before it pulls maiden material out of the ground in the early 2020s. All things considered, the London business carries still carries an uncomfortable amount of risk for me, I’m afraid.

The post Why I’d sell Sirius Minerals plc to buy this growth star appeared first on The Twelfth Magpie.

More reading

• If a 50-year-old puts £1,000 a month into a SIPP, here’s what they could have by retirement

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.

Thanks to its exceptional geographic footprint I am convinced that InterContinental Hotels Group (LSE: IHG) is one such share. Indeed, City brokers are predicting that the accommodation star will keep the bottom line swelling by double-digit percentages for some time yet (rises of 17% and 10% are expected in 2017 and 2018 alone).

While I plan to look at the big-cap beauty a little more, I think it’s also worth having a look at roadside barriers and signage provider Hill & Smith Holdings (LSE: HILS) right now.

Revenues rising

The market has not exactly put out the bunting following the release of Hill & Smith’s latest update on Wednesday, however.

It was last 2% lower on the day despite the FTSE 250 firm putting out a reassuring update in which it was advised that trading came in “in line with its expectations” during the four months to October 31.

Revenues galloped to £201.5m in the period from £189.6m in the same 2016 period, with organic sales advancing 4% adjusting for currency effects and the impact of acquisitions and disposals.

The results led chief executive Derek Muir to comment: “Overall, conditions in many of our infrastructure end markets remain favourable and we continue to expect the group to report good progress for 2017.”

Read the signs

Now conditions are not exactly perfect for It right now, the Solihull-based business declared: “A small number of road schemes have been delayed into 2018 resulting in lower utilisation of our temporary safety barriers.”

But the vast amounts government is spending to upgrade Britain’s road network means that this demand hiccup is likely to prove a temporary problem. Indeed, Hill & Smith commented “We continue to expect a ramp up in activity towards the end of the first quarter in 2018 and for utilisation to improve on 2017.”

And it continues to enjoy solid customer interest overseas too — in Australia business has been “performing ahead of expectations,” while the firm described its performance in the US and Sweden as “good.”

So City brokers are expecting earnings at Hill & Smith to rise 9% and 5% in 2017 and 2018 respectively, forecasts that are anticipated to keep dividends rising at a fair lick too (last year’s 26.4p per share payout is anticipated to rise to 28.9p this year and 30.2p in 2018, meaning investors can also dial into handy yields of 2.2% and 2.4% for these years).

I am convinced its leading position in the road furniture market should deliver splendid shareholder returns in the coming years, and reckon the firm is worthy of a forward P/E ratio of 18 times.

No time to nap

Like Hill & Smith, InterContinental Hotels may also be looking a little expensive on paper. Based on current forecasts the hotel giant sports a prospective P/E rating of 24.1 times.

But in my opinion the possibility of breakneck profits growth still makes the Footsie star a compelling pick at current prices, and particularly when you also throw in handy little yields of 1.9% ad 2% for this year and next.

InterContinental Hotels saw revenue per available room rise 2.3% during July-September and, with the company expanding across the globe at a colossal rate (it opened 11,000 new rooms in the past quarter and boasts a pipeline of another 235,000), it can look forward to steady earnings growth long into the future.

The post A FTSE 100 super growth stock to make you rich! appeared first on The Twelfth Magpie.

More reading

• If a 50-year-old puts £1,000 a month into a SIPP, here’s what they could have by retirement

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.

The company has seen its bottom line swell at an annualised rate of 11.2% during the past five years alone. And with the UK government steadily stepping up investment in the country’s road network, demand for Hill & Smith’s products looks set to keep riding higher.

Indeed, Hill & Smith’s full-year trading statement released on Wednesday was treated with plenty of fanfare, a 6% share price advance pushing the stock to three-month peaks. Hill & Smith advised that revenues blasted 16% higher during 2016, to £540.1m, which is the company’s best result on record. And this propelled pre-tax profit to £68m, up 28% year-on-year.

Celebrating the results, chief executive Derek Muir commented that “our performance continues to be underpinned by our tried and tested strategy of international diversity together with the leading positions our businesses hold in their respective markets.”

And with infrastructure investment still rising, Muir added that “despite political and macro-economic uncertainties, 2017 is again expected to be a year of progress.”

City brokers certainly share my bullish take on Hill & Smith, and have chalked in earnings growth of 5% and 3% in 2017 and 2018 respectively.

Subsequent P/E ratios of 17.5 times and 17 times sail above the benchmark of 15 times regarded as conventionally good value. Still, I reckon investors should give short shrift to these slight premiums considering the company’s robust revenues outlook at home and abroad.

Brand heavyweight

Unilever’s (LSE: ULVR) vast portfolio of products can be matched by few others.

It is the immense diversity and pulling power of labels from Walls ice cream and Flora margarine through to Dove soap that tempted Kraft Heinz to make its mammoth $143m takeover bid last month, and it could well encourage the US giant to return sooner rather than later following this first rejection.

Despite experiencing a sales deceleration during 2016, the strength of Unilever’s brands still helped the group’s like-for-like sales grow 3.7% during the 12 months. And the business continues to throw huge sums at product innovations and brand roll-outs in new territories to keep sales on a northward tilt.

Such an approach has already delivered steady earnings growth at the London business, allowing the top line to keep growing despite pressure on shoppers’ wallets. And the number crunchers have slated further expansion in the medium term at least — rises of 10% in 2017 and 9% in 2018 are currently expected.

Like those of Hill & Smith, these figures create slightly-toppy P/E ratios of 22.5 times and 20.7 times respectively. But I reckon the evergreen allure of Unilever’s, added to the protection afforded by the manufacturer’s huge geographic footprint, more than warrant such high figures.

The post 2 great ‘safety’ shares for growth investors appeared first on The Twelfth Magpie.

More reading

• 3,566 shares in this FTSE 100 stalwart earns a £1,443 second income
• If a 50-year-old puts £1,000 a month into a SIPP, here’s what they could have by retirement
• 2 FTSE shares for beginners starting an ISA
• Is this former stock market hero now the ultimate FTSE 100 buy and hold?

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

It can’t be disputed however, that the risks facing Big Tobacco have ratcheted up a notch or several in recent years. Legislators across the globe continue to roll out public smoking bans, plain packaging requirements and other schemes to limit smoking activity. And a rising black market is also hampering profitability for the industry’s major players.

Having said that, the strength of brands like Pall Mall and Lucky Strike is allowing British American Tobacco to navigate the worst of these troubles — sales volumes of these so-called Global Drive Brands leapt 9.8% between January and September.

And the UK-listed giant is also betting big that the fast-growing e-cigarette market should deliver stout earnings growth and mitigate the problem of lost tobacco revenues. British American Tobacco launched its new Vype Pebble product just this week, in conjunction with a new vaping-dedicated store in Milan.

City analysts certainly believe British American Tobacco has what it takes to keep generating solid bottom-line growth and with it exceptional dividend expansion. Indeed, the firm is expected to raise the dividend from a predicted 164.6p per share this year to 179.2p in 2017, helped by an anticipated 15% earnings boost.

This projection yields a chunky 4.1% yield.

Hit the road

Meanwhile, the vast sums being ploughed into revamping Britain’s road network are also expected to deliver excellent dividend growth at Hill & Smith (LSE: HILS).

The company — which provides road furniture such as walkways, safety barriers and signage — announced last month that the UK government’s Road Investment Strategy is helping to propel the top line, with group underlying revenues shooting 15% higher during July-October.

And Hill & Smith is strengthening its market position through shrewd acquisition activity. Just in August the business snapped up street lighting, road sign and traffic management provider Signature for £12.5m.

The number crunchers expect a predicted 8% earnings rise in 2017 to keep Hill & Smith’s progressive payout policy rolling, and a dividend of 26.8p per share is currently expected, up from an estimated 24.9p in the current period.

While a dividend yield of 2.2% may lag a forward average of 3.5% for Britain’s blue chips, I reckon Hill & Smith is in great shape to deliver meaty payout increases long into the future.

In fashion

Like Hill & Smith, dividend yields at Ted Baker (LSE: TED) also lag those of the broader market through to 2017 by some distance.

The company is predicted to pay a reward of 61.9p per share for the year to January 2018, up from an anticipated 54.6p this year but yielding just 2.4%. However, I reckon soaring demand for Ted Baker’s togs makes it one to watch for both growth and income seekers.

The popularity of the mid-to-premium fashion segment shows no signs of slowing, and retail sales at Ted Baker shot 15.4% higher during the last quarter. New store openings in the US helped to power revenues, but this wasn’t the only story as e-commerce sales exploded 30.3% year-on-year.

The City expects Ted Baker’s bottom line to keep swelling for some time yet, and an 8% rise is predicted for fiscal 2018 alone. I reckon the fashion star’s rising global appeal makes it one to watch for savvy dividend chasers.

The post 3 great growth dividend stocks for 2017 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 Ted Baker plc. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.