The good news, though, is that this nosedive to three-month lows provides a great opportunity for dip buyers to nip in and grab a bargain — right now the FTSE 250 firm trades on a dirt-cheap forward P/E ratio of 12.4 times and it carries a gigantic 6.1% corresponding dividend yield too.

Look, the recruitment provider isn’t totally immune to the slowing German economy or tough construction markets in Australasia, and net fees growth dropped to 6% in the quarter ending March from 9% in the prior three months.

But there was still plenty to celebrate in the release last week. Net fee growth was still impressive considering the tough comparatives of a year earlier, and there was stunning progress in some of its other territories (including record quarterly results in eight of its markets).

A final shot: these Q3 results provided an extra nugget for income seekers to celebrate. Hays’ position as a cracking cash creator is well known and net cash swelled to £30m as of June, up from £5m a few months earlier and giving that little more beef to its progressive dividend policy.

Dividends still travelling higher

National  Express Group (LSE: NEX) is another dividend share I’ve long championed because of the booming profits it’s generating in foreign climes, progress which is due in no small part to its great track record of acquisitions.

So news that the transport operator was at it again this month by acquiring a majority stake in US-based employee shuttle company WeDriveU was fresh cause for celebration. The business serves some of Silicon Valley’s biggest companies and provides some excellent growth opportunities across the rest of North America.

City analysts certainly don’t expect National Express’s recent history of earnings growth to cease any time soon, and so dividends are anticipated to continue storming higher as well. For 2019, this results in a chunky 4% yield.

9% dividend yields!

If you’re looking for truly heart-stopping yields, though, you might want to check out Bovis Homes Group (LSE: BVS).

The size of the UK housing market’s supply and demand gap means that sales of new-builds should keep on tearing higher long into the future. The construction colossus is taking steps to boost its position in the social housing segment too, and this month entered a joint venture with Riverside to build a massive new development near Wellingborough, Northamptonshire, which will consist of more than 3,600 homes.

A bright profits outlook and the ability to also throw out shedloads of cash means that the homebuilder is dedicated to continuing to supply shareholders with special dividends, and this means that for 2019 the yield sits at a gargantuan 9.1%. At these levels I reckon Bovis is hard to overlook.

The post 3 FTSE 250 dividend kings I’d buy today and never sell 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.

Its healthy rating, a forward P/E multiple of 16.8 times, may sit above the index’s broad average, but the heavy price slump that followed last week’s trading release suggests many have fallen out of love with the car insurance giant.

Investors were turned off by news that “continued inflation in damage claims and increased large bodily injury frequency” at its Motor division caused its loss ratio to rise 20 basis points at group level to 66.4%. This forced Admiral to hike the cost of its policies, delivering a smack to sales growth in the second half of 2018.

Concerns regarding competition in the auto market have been doing the rounds now, and so Admiral’s decision to raise premiums higher more than its competitors has done little to soothe nerves.

Multinational mammoth

That said, there’s still plenty to celebrate in those full-year results, in my opinion, and reason to expect earnings to keep rising (incidentally City analysts are predicting a 7% bottom-line improvement this year).

I’ve lauded Admiral’s long-term sales opportunities in foreign markets time and again. In fact, 2018 proved a significant step on its journey to conquer Europe as its International divisions delivered combined profits growth for the first time — last year the number of international car insurance customers on its books leapt by 18% to 1.22m.

The British insurer now has almost the double of overseas customers that it had just three years ago, and with it having established a  Spanish insurance company last year to switch its European portfolio to, Admiral’s well placed to absorb any troubles emanating from Brexit and to keep growing sales across the European Union.

It’s no wonder then that the number crunchers are predicting that Admiral will have the confidence to raise the total dividend again this year, to 131.4p per share from 126p in 2018, a figure that yields a brilliant 6.1%.

Another large yielder

Whilst you’re here I’d like to bring your attention to National Express Group (LSE: NEX), another brilliant big-yielder that’s making a splash in foreign marketplaces.

The FTSE 250 bus and rail operator’s share price has leapt to record highs last month after releasing brilliant full-year financials which showed sales growth at each of its divisions accelerate during the second half of 2018, causing the firm to deliver decent sales and pre-tax profit growth last year (up 7% and 11%, respectively).

National Express made 10 acquisitions spanning North America and Spain last year, transactions that helped revenues hit record tops in both regions. And thanks to its strong balance sheet (free cash flow swelled 36% to a shade under £200m in 2018), it can carry on pursuing its successful M&A-led growth strategy, not to mention maintain its generous dividend policy.

This means that right now National Express carries a chunky 3.8% forward dividend yield, underpinned by expectations of a 5% earnings rise for 2019, too. Throw a low corresponding P/E multiple of 12.3 times into the mixer, too, and I think the business is another great stock to snap up today.

The post Income alert! I reckon this 6%-yielding FTSE 100 dividend stock could make you 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.

The two bidders have formed a company called Connect Airways which will pay 1p per share for Flybe, a shocking result for investors as only yesterday the shares were changing hands for 16.4p. Flybe has accepted the offer and, once complete, its planes will be rebranded with the Virgin livery.

Distressed assets 

It is easy to see why bidders have decided to swoop on Flybe. The business operates the UK’s largest regional airline, managing 55% of UK domestic flights outside of London, and owns some valuable landing slots at key airports.

Together, Stobart and Virgin should be able to give the firm a new lease of life. Stobart Air already owns Southend Airport and has an extensive aviation division. Meanwhile, Virgin has global connections and code-sharing agreements with other large, international carriers.

As well as forking out £2.2m to buy Flybe’s equity, the partners are also putting £20m into the business to keep the lights on, and a further £80m of investment is planned in the new enterprise.

Income boost 

Even though the deal still has to be voted through by shareholders, I think the decision to buy Flybe with Virgin could wake up Stobart’s sleepy stock. 

Flybe struggled because it could never really achieve scale. With Virgin on board, the new Connect Airways will have one of the most successful airlines in the world in its corner, which should help the new business take off. 

What’s more, as Stobart already has an aviation division, there should be some synergies to be had here. I’m excited to see what the rest of the year holds for the company as it completes this transformative deal.

Market opportunity 

Another stock that I like the look of for 2019 is National Express (LSE: NEX). As a frequent coach user, I can say with relative confidence that this is a well-run business, especially when compared to the rail network. National Express coaches are not only significantly cheaper than trains, but they also usually get you there on time and don’t suddenly stop running if it gets too cold (or leaves fall on the road). 

As the price of rail travel continues to rise, I can see more and more customers opting for this cheaper option (70% cheaper in some cases). Indeed, more customers are already turning to the company, helping the business to achieve an “outstanding” trading performance over the summer in the UK, according to its latest trading update. Between the 1st of July and the end of September, passenger numbers in the UK expanded by 6% and revenue grew 10.1%. August bank holiday Monday’s revenue was up 13% alone.

This isn’t a new trend. The company has hardly struggled to grow over the past six years. Net profit has increased at a compound annual rate of 17% per annum since 2012, and City analysts have pencilled in earnings per share (EPS) growth of 16% for 2018, followed by an increase of 6% for 2019. On top of this growth, the stock supports a dividend yield of 3.9%.

All in all, I don’t think National Express’ growth is going to slow any time soon, and this could fuel impressive share price gains during 2019.

The post Forget the FTSE 100! I’m considering these mid-caps for 2019 appeared first on The Twelfth Magpie.

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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.

Getting a stocks & shares ISA instead and using it to invest in stocks that pay decent dividends is, in my view, a far better option, and there are two in the news that I reckon warrant a closer look.

Faster than inflation

Not only has transport operator National Express Group (LSE: NEX) been paying attractive dividends for years, its annual rises have been coming in way ahead of inflation too.

Current forecasts suggest the dividend this year will have grown by 49% since 2013, and added to a five-year share price rise of 52%, that’s an impressive performance. The 2018 yield is forecast at 3.9%, with 2019 forecasts suggesting 4.2%. Those who bought five years ago would effectively be getting around 5.7% and 6.2% respectively on their purchase price.

As long as that continues, shareholders would be seeing their income growing in real terms every year — and if you invest your growing dividends in new shares, you could accelerate that.

Thursday’s Q3 update suggests everything is going just fine, with revenue up 9.5% (8.9% in constant currency terms) and pre-tax profit up 18.3%. The company says its margins are up year-on-year too, and that it expects the current momentum to carry on over the medium term.

As far as the outlook goes, chief executive Dean Finch said the firm’s “continued focus on cashflow and operational performance should allow us to continue to grow profit in the years ahead.” It looks like a fairly safe one to me.

Shares too cheap?

Another that’s caught my attention is the forecast 4.9% dividend yield from Rank Group (LSE: RNK), the owner of Mecca Bingo and Grosvenor Casinos. If analysts are right, the dividend will have risen by 80% in five years, which is really hammering inflation.

But seeing that a recent share price slump has contributed to the yield growing from 2.7% in 2013 to that predicted 4.9%, I’m a lot more cautious. Although Rank shares are marginally ahead of the FTSE 100 over five years, we’ve seen a 45% fall since the end of 2015, and the reason seems clear.

With the rise of online gambling and its ease of play, the demand for bricks and mortar gaming establishments is diminishing — and Thursday’s update only reinforced that.

Like-for-like revenue for the 16 weeks to 14 October fell by 4.9%, with revenue from the firm’s venues dropping by 6.1%. Growth in digital revenue of 1.7% helped to offset that a little, but considering how fast some of Rank’s online competitors are growing, I don’t find that too impressive.

Rank is in a transformation programme at the moment, and the early days of a period when a company is undergoing a refocusing of its operations is not the ideal time to seek reliable progressive dividends. At least that’s my opinion, based on having seen so many companies in similar situations in the past having to control costs by cutting their dividends. I’d give this one a miss.

The post Forget a cash ISA! I’m considering these 2 big dividend stocks to protect my pension from inflation appeared first on The Twelfth Magpie.

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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.

Sure, their yields weren’t the biggest on the market, but the rate at which they’re likely to continue raising the payout still makes them great bets for income chasers.

There are plenty more dividend heroes to pick from among London-listed shares, of course. This article digs out another couple that look set to keep hiking payouts at an eye-popping rate, National Express Group (LSE: NEX) and Robert Walters (LSE: RWA).

Untroubled Walters

I’ve previously touched upon the exceptional revenues opportunities that Robert Walters’ pan-global presence is affording, a factor that was apparent in the recruiter’s latest set of financials.

The company sources almost three quarters of net fees from foreign shores, providing the sort of diversity essential for reliable earnings and thus dividend growth. And the AIM-quoted business continues to deliver brilliant growth across its territories, and particularly so in Europe where net fee income galloped 26% at constant currencies during the first half of 2018, to £48.9m.

What’s more, while conditions remain tough for many of its competitors in the UK, Robert Walters continues to go from strength to strength. In this territory, net fee income rose 9% to £52.6m between January and June, and expansion via a new office opened in Leeds underlines the company’s confidence in its home territory.

Reflecting its impressive performance, the City expects it to report earnings growth of 6% in 2018 and 9% next year, meaning that dividends are predicted to rise to 13.9p this year from 12.05p in 2017, and to 15.4p in 2019. Consequently yields stand at a handy (if unspectacular) 1.8% and 2% respectively.

Bus in stunning returns

Robert Walters deals on a forward P/E ratio of 17.1 times, sitting just above the widely-considered value territory of 15 times and below. While I believe the staffing giant demands a slightly-toppy rating, those seeking classic value may want to visit FTSE 250 share National Express instead.

Its long record of earnings growth is expected to continue with an 11% rise in 2018, meaning it deals on a prospective P/E ratio of 12.5 times. What’s more, with profits anticipated to keep rising beyond the near term — a 6% profits advance is estimated for 2019 — dividends should continue their upward movement, or at least according to the number crunchers.

A 14.9p per share reward is anticipated for 2018, up from 13.51p last year and yielding 3.7%. Next year a 16.1p payout is expected, yielding a fatty 4%. And if latest trading details are anything to go by, the stage would appear set for further chunky dividend expansion.

The coach operator punched record pre-tax profits for the January-June period of £80.1m, up 24% year-on-year. North America once again proved to be the engine room for National  Express, where revenue growth came within a whisker of hitting double-digit percentages. And I am confident its diversification into exciting growth territories, helped by ongoing acquisition activity, should keep group profits chugging higher long into the future.

The post Forget the FTSE 100! These 2 dividend growth stocks could help you retire 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.

The business — which provides a range of engineering products and services for the control of fluids — declared: “Results in the first quarter of 2018 reflect a continuation of the improved trading experienced across the group through 2017, albeit with continuing uncertainty in some segments.”

While it added that trading remains consistent with expectations at the moment, investors have taken fright over the uncertain outlook for some of its segments.

But this was not the only item of concern as guidance around the issue of severe foreign exchange tailwinds also prompted some to cash out. IMI said that, should sterling’s value against the euro and US dollar stand at the average rate seen during January-March, this would create an exchange rate headwind of some 4% for both sales and profits in 2018.

Self-help scheme on track

The news from the Birmingham firm was not all worrying, however. Organic revenues in the three months to March were up 2% year-on-year, prompting IMI to comment that sales on a comparable basis should still be up for the first half of the year from the corresponding 2017 period.

What’s more, the engineer continued to laud the impact that its self-help measures are having, commenting: “Our new product pipeline is developing well, the operational performance of our manufacturing facilities has further improved and the new systems and processes we are putting in place are enabling us to do business more efficiently.” 

It added that “reorganisation activities across the business are progressing well and according to plan.”

Sure, the outlook in some of IMI’s markets may remain patchy for a little while longer, but I believe this is reflected in the company’s low forward P/E rating of 15.1 times, a multiple created by expectations of a 7% earnings rise in 2018 (a 9% profits advance is forecast for 2019 too).

And with its raft of operational improvements clicking through the gears nicely, I reckon this low ratio provides plenty of upside in the years to come.

Predicted dividends of 40.6p and 42p for this year and next, figures that yield 3.9% and 4% respectively, add a very tasty sweetener.

In the fast lane

National Express Group (LSE: NEX) is another FTSE 250 bargain I’d be happy to splash out on today.

With earnings expected to keep booming at double-digit percentages — a 10% advance is forecast for 2018 — the transportation titan can be picked up on a forward P/E ratio of 12.5 times. What’s more, a predicted dividend of 14.9p per share, yielding a chubby 3.7%, gives share pickers further reason to invest.

An extra 4% profits rise is estimated for next year, while an anticipated 16p dividend moves the yield to 4%.

As I commented recently, National Express’s rolling expansion programme abroad is really delivering the goods, and revenues in its North American and Spanish ALSA divisions rose by a chunky 10.1% and 3.6% respectively last year. I am confident that the bus giant is on course to deliver strong shareholder returns long into the future.

The post 2 dirt-cheap FTSE 250 stocks I’d buy with £2,000 today 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 recommended IMI. 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.

Oversold

First up is Midlands-focused water supplier Severn Trent (LSE: SVT). I know there’s a lot of uncertainty surrounding the sector, not least the upcoming regulatory price review, but I reckon the recent share price dive has really brought the business into oversold territory.

Having reached an all-time high of 2,575p less than a year ago, its shares have fallen back dramatically. They’re currently off from its peak by just over a third and this has had a major impact on its valuations.

Severn Trent currently offers a yield of 4.9% and trades at just 13.8 times its expected earnings next year — a post-recession low multiple for the company, which I believe suggests that much of the regulatory risks are already baked into its current share price.

Triple threat

Still, there are other risks to consider besides the tougher regulatory outlook. Rising interest rates are another big concern for shareholders due to the company’s high leverage ratio. That’s a typical feature in the water industry, which means the sector’s profitability is much more sensitive to interest rate changes.

Aside from hurting its profitability, there’s the added concern that higher rates would induce a rotation by investors away from owning defensive stocks into cyclical stocks, such as banks and insurers.

And on top of this, there’s the risk of re-nationalisation, which could leave current shareholders out of pocket. But of the three threats, I reckon fears over re-nationalisation are most overdone. A recent report from the Social Market Foundation think-tank suggested that buying back the entire water industry could cost taxpayers up to £90bn, which would add significantly to the national debt and put at risk future investment in other sectors.

Transport

Looking elsewhere, I reckon that bus and rail operator National Express Group (LSE: NEX) is another rock-solid dividend pick.

The company’s recent impressive results for FY2017, and management’s upbeat outlook for the year ahead, point to continued resilience for the group amid a struggling transport sector. Thanks to its attractive service mix and strong international diversification, National Express stands well apart from its transport sector peers in both its top-line and bottom-line financial performance.

Over the past three years, its revenues have climbed on a consecutive annual basis, from £1.87bn in 2014 to £2.32bn last year, while normalised earnings per share have increased by nearly a quarter to 29.1p.

Meanwhile over the same period, it has increased its dividend payout from 10.3p to 13.5p, a compound annual growth rate (CAGR) of almost 10%. Going forward, there’s further potential for future growth, as the payout ratio last year stood at just 46% of its normalised earnings, while at the same time free cash flow was more than double its dividend outlay.

City analysts expect the group’s adjusted earnings to rise by 11% this year, leaving the stock trading on a forward P/E of just 12.2. On top of this, there’s a prospective yield of 3.9% for investors to look forward to.

The post 2 rock-solid dividend stocks I’d consider before the ISA deadline appeared first on The Twelfth Magpie.

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Jack Tang has no position in any 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.

But Friday’s release has given Essentra’s stock value a welcome shot in the arm, the stock last dealing 6% higher on the day.

The FTSE 250 business advised that pre-tax losses had narrowed to £5m in 2017 from £63m in the prior period.

Revenues rose 3% to £1.03bn, although this was thanks to favourable foreign currency movements — on a like-for-like basis they actually slipped 2% from 2016 levels. Having said that, the impact of hurricane activity in the US and Puerto Rico took a bite out of the top line in the period.

Commenting on the results, chief executive Paul Forman said: “I have previously expressed that restoring Essentra to sustainable, profitable growth is not a rapid journey, and we clearly have a lot of work still to do. However, together we have made great progress and tangible improvement in 2017, so we are already well on our way.”

Back to growth

With Essentra predicted to move back into a period of earnings expansion now — rises of 19% and 14% are forecast for 2018 and 2019 — brokers are also expecting the firm to start lifting dividends again too.

So after paying a 20.7p per share reward for each of the past three years, Essentra is anticipated to lift the dividend to 20.8p this year and again to 20.9p next year. Consequently investors can tap into tasty yields of 4.4% and 4.5% respectively.

That being said, cautious share pickers should recognise that these projections aren’t very well covered. Predicted dividends are covered just 1.3 to 1.4 times by predicted earnings through to the close of fiscal 2019, well below the widely-accepted security benchmark of 2 times and above.

Now Essentra is expecting to make further headway in 2018 and to finally report a return to like-for-like sales growth this year. Its progress is to be lauded, although it still has some way to go, and I therefore do not believe risk-averse investors should splash out on the stock today, particularly given its slightly-toppy forward P/E ratio of 17.9 times.

Bumper yields well protected

Indeed, I would be much happier to take my investment cash and to spend it on National Express Group (LSE: NEX) instead, and not just because of its far superior valuations.

The 8% earnings improvement predicted for 2018 leaves the bus operator dealing on a forward P/E multiple of just 11.5 times. An extra 4% profits rise is predicted for next year, and these bright projections lead to expectations of handsome dividend expansion.

The 13.51p per share reward of last year is anticipated to rise to 14.8p this year, and again to 15.8p in the following period. These figures yield a chunky 4.1% and 4.4% respectively.

To put the cherry on the cake, dividend coverage through to the end of 2019 stands at an impressive 2.1 times.

I am impressed by the splendid progress National Express continues to make in foreign climes, and with the company steadily expanding its international footprint I am convinced that both earnings and dividends should continue their trek higher.

The post Should you buy these high-yielding shares today? 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 owns shares of and has recommended Essentra. 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 travel giant is still making roaring progress at home and over the sea and this was highlighted in December’s cheery update in which it advised that it had “continued to see a good trading performance across all of our divisions during October and November,” and that it was “encouraged by strong early Christmas trading in both our UK and Spanish coach businesses, with advanced sales higher than last year.”

Not content to rest on its laurels, National Express continues to build its presence in foreign climes to lasso this strong demand. Last month it boosted its position in the US by buying a school bus and coach operator in Cincinnati, while closer to home it also purchased a Madrid-based bus operator.

On the move

National Express’s brilliant progress in its fastest-growing territories may grab the headlines (the firm saw revenue growth in the States rev to 13.7% during July-September). But the company’s resilience at home, in difficult market conditions, also deserves plenty of accolades.

So City analysts are expecting further sustained earnings growth, of 6% in 2017 and 9% next year. And as a consequence the coach and bus operator is also expected to keep dividends moving higher.

Last year’s 12.28p per share reward is anticipated to rise to 13.5p in the present period, resulting in a 3.6% yield. And the 14.8p per share dividend forecast for 2018 nudges the yield to 3.9%.

And these projections are also pretty well protected, as dividend coverage stands at 2.1 times through to the close of next year.

National Express has seen its share price surge in recent months, although it still changes hands on a dirt-cheap forward P/E ratio of 13 times. I reckon the FTSE 250 firm is a great pick for both growth and income chasers right now.

Build a fortune

Nexus Infrastructure (LSE: NEXS) is another London share expected to dole out chunky dividends in the near-term and later.

Supported by a predicted 18% earnings improvement, the company — which supplies essential infrastructure services to the domestic housebuilding and commercial sectors — is expected to pay a 7.6p per share dividend in the year to September 2018.

This would mark a significant upgrade from the 5.8p payment expected for the last fiscal year, and yields a mighty 3.6%.

And just like National Express, Nexus can also be picked up for next-to-nothing right now, the AIM firm sporting a prospective P/E multiple of 9.8 times and a corresponding PEG readout of 0.5.

Now I’m not going to suggest that all is rosy in the British construction segment as Brexit fears rattle building activity. But I am confident that Nexus’s core operations surrounding the bright housebuilding segment should provide scope for solid earnings growth.

Besides this, a bulky £202.7m order book as of September (up 25% year-on-year) should soothe any fears surrounding future revenues.

I reckon Nexus is another great ‘all-rounder’ that could receive fresh share price fuel when full-year results are released on January 9.

The post 2 dividend stocks I’d buy in January appeared first on The Twelfth Magpie.

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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

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.

Back then the ale giant advised that “we remain cautious about the trading environment and expect[s] the challenges of weaker consumer confidence, increased costs and increasing competition to persist over the near term.” The challenging conditions it highlighted were reflected in a 1.2% decline in like-for-like sales for the 18 weeks to September 3.

It doesn’t take a genius to work out that the leisure sector is likely to suffer from rising pressure on drinkers’ wallets in the months, and possibly years, ahead. But thanks to its concentration on the more affluent South East of England, its brand improvement strategy, and its extensive cost-cutting, I believe Greene King is in great shape to ride out the worst.

Stunning yields

And in my opinion, its rock-bottom valuations make it an extremely enticing pick right now, a predicted 5% earnings decline in the year to April 2018 creating a forward P/E ratio of 7.8 times (earnings are expected to rise 1% in fiscal 2019, as an aside).

Moreover, those on the hunt for scintillating yields really need to give it a close look. Last year’s 33.2p per share dividend is predicted to rise to 33.3p and to 34p this year and next, resulting in mountainous 6.3% and 6.5% yields.

Fun in the sun

Thanks to the brilliant revenues potential of its foreign operations, I am convinced National Express Group (LSE: NEX) is another solid dividend share I reckon could make stock pickers small fortunes in the years ahead.

I have long advocated the exceptional investment case for the travel titan, and my faith has been reinforced by brilliant third-quarter trading details released on Thursday.

National Express announced that normalised profit before tax jumped 12.3% during July-September while revenues across the business rose 6.4% from the same 2016 quarter. Passenger numbers, meanwhile, swelled 2.5%, thanks in large part to the progress of its overseas divisions.

In Spain and Morocco, its ALSA subsidiary enjoyed “a particularly strong summer performance,” with passenger numbers up 4.1% and underlying revenues 2.1%. And in North America, revenue growth boomed to 13.7% in the three months, National Express reporting “both organic growth and strong progress in interesting new markets.”

And the Birmingham-based business affirmed its commitment to M&A in these exciting foreign territories to keep revenues sharply rising.

Another dividend dynamo?

Today’s bubbly release has encouraged investors to pile back into the FTSE 250 share with some gusto, it gaining 6% in value as a result.

Still, broadly speaking, National Express has not exactly been the belle of the ball in recent times, the firm having sunk to eight-month lows in the run-up to Thursday’s release. So while it has sprung to life again today, it still offers terrific value for money right now.

With City brokers predicting a 6% earnings improvement in 2017, National Express deals on a forward P/E ratio of just 12.5 times. Furthermore, profits are predicted to keep marching onwards too, an 8% increase being estimated for 2018.

And as I already said, it should prove an exceptional selection for income investors. Last year’s 12.28p per share reward is anticipated to improve to 13.4p this year and 14.6p in 2018, meaning that yields for these years clock in at 3.7% and 4% respectively.

The post This unloved 6% yielder could make you very rich appeared first on The Twelfth Magpie.

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• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

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.