Certainly, the company faces risks which could hold back its share price recovery prospects. However, what seems to be a sound overall strategy, as well as global growth potential, could mean that it delivers a successful turnaround. Alongside another large-cap stock which released results on Thursday, Santander could generate high total returns.

Improving outlook

The stock in question is FTSE 100 insurance business RSA (LSE: RSA). Its full-year results were somewhat mixed, with its underlying performance being negatively impacted by higher weather costs and large loss challenges in Commercial Lines. In response, it is moving ahead with extensive underwriting action, with the company expected to report an improving performance in 2019.

Since the stock has fallen in value by 20% in the last year, it now has a dividend yield of around 6.6%. Dividends are expected to be covered 1.6 times by profit in the 2019 financial year, which suggests that there is scope for them to rise at a faster pace over the medium term. And with the stock’s bottom line forecast to rise by 12% this year, its price-to-earnings growth (PEG) ratio of 1 indicates that it may offer a margin of safety.

As such, RSA could prove to be a worthwhile growth, income and value opportunity. It could deliver impressive total returns compared to the FTSE 100 after what has been a relatively challenging year for the business.

Turnaround potential

As mentioned, Santander’s shares appear to have been negatively impacted by fears surrounding the global economy. Risks such as further import tariffs being put into place by major economies such as the US and China seem to have caused investor sentiment to deteriorate, while Brexit may also be causing continued challenges for the company in key markets.

The bank is investing heavily in digital growth, which could prove to be a major catalyst over the long term. It is also aiming to improve its competitive position in order to benefit from increased customer loyalty. This could create a stronger business in the long run, which is able to offer consistent profit growth.

With a dividend that is due to be covered 2.2 times by net profit in the current year, Santander’s income prospects appear to be relatively resilient. It is expected to grow its bottom line by 9% this year, which puts it on a PEG ratio of 0.9. This suggests that it offers a wide margin of safety. As such, it may offer an income investing opportunity as well as recovery potential that makes it more appealing than a cash ISA on a risk/reward basis.

The post I would dump the cash ISA and pick up Santander’s 6%+ dividend yield appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

It’s certainly been an unsettling week, but it’s worth noting that so far the FTSE 100 has only fallen by about 6.5% in October. Not exactly a disaster.

What’s more interesting for stock pickers is that buying opportunities may be starting to open up in this uncertain market. Today, I want to take a look at three potential picks on my radar.

Stormy weather slows progress

Chief executive Stephen Hester has delivered a sure-footed turnaround of RSA Insurance Group (LSE: RSA) since taking charge in 2014. But this steady progress hit a roadblock in September when the FTSE 100 firm issued a profit warning.

Bad weather played a part, but it seems that improvements may also be needed in the group’s UK underwriting division. Hester says that “actions to improve in the UK are well underway.” I see no reason to doubt this, given his track record.

What interests me is that the shares are now down by nearly 20% from June’s 52-week high of 683p.

At 550p, RSA stock trades on just 12.7 times 2018 forecast earnings, with a 4.7% dividend yield. Analysts expect the group’s recovery to continue in 2019. For long-term investors, I think this could be a good time to buy.

Safer than houses?

I’m unsure about the outlook for the housing market at the moment. But one housing-related stock I would like to own is Rightmove (LSE: RMV).

Shares in this property website always look expensive, but today’s price of 430p show they’re down by 20% since peaking in June. At this level, I think this market-leading business could be worth considering.

Rightmove lists more properties and attracts more visitors than any other UK property site. It benefits from what’s known as a network effect — more visitors mean more properties are listed. And this attracts even more visitors.

The firm’s business is amazingly profitable. Last year, Rightmove generated a return on capital employed of over 1,000%. That means it generated £1,000 of profit for each £100 of capital tied up in the business.

A lot of the group’s surplus cash is used to buy back shares, which helps to ensure that earnings per share keep rising.

Shares in this property listing website now trade on 24 times 2018 forecast earnings. That looks reasonable to me for a long-term buy. Although the dividend yield is low, at 1.5%, it’s probably one of the safest payouts in the UK market. I believe the dividend should continue to rise.

Packaging could be a long-term winner

The share price of packaging group Smurfit Kappa Group (LSE: SKG) has fallen by nearly 25% from the summer’s 52-week high of 3,308p. At around 2,500p, I think the shares are starting to look good value.

The group has grown rapidly in recent years through a mix of organic growth and acquisitions. Net profit last year was €417m, up from just €188m in 2013.

This expansion isn’t completely without risk. Strong management is always required with acquisitions, and the group runs a fairly hefty debt balance to fund this progress. However, an 18% return on capital employed, and strong cash generation, suggest to me that the group’s strategy should be sustainable.

With the shares now trading on just 10.5 times forecast earnings, and offering a 3.3% yield, I think that now could be a good time for long-term investors to consider a buy.

The post 3 FTSE 100 dividend stocks I’d buy after this week’s slump appeared first on The Twelfth Magpie.

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Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Rightmove. 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.

There are plenty of such stocks to pick across the FTSE 100. Right now I’m looking at two of them.

Big yields

News that RSA Insurance Group’s(LSE: RSA) operating profit took a hefty whack in the first-half — this dropped 15% between January and June to £304m — doesn’t dent my bullish belief in the firm.

The insurer’s pointed reversal was down to adverse weather conditions which were £53m in excess of the five-year average. Of course such troubles are part and parcel of the industry, and with climate change leading to more and more extreme weather phenomena across the globe, the likes of RSA Insurance are susceptible to such bills sailing above historical averages.

Still, there was plenty to like in the company’s half-year release, and particularly so in Scandinavia and Canada where premiums grew on a constant currencies basis during the period, despite tough economic conditions. And with the firm getting a grip on costs too, with total written costs falling 2% in the first six months of 2018, it’s no surprise that City analysts expect earnings to keep rattling higher.

Rises of 8% and 13% are forecast for 2018 and 2019 respectively. One subsequent cause for cheer is that RSA Insurance changes hands on a cheap forward P/E ratio of 13.4 times, inside the accepted value territory of 15 times or below. The second cause is that these estimates lead to expectations of additional dividend expansion.

Last year’s 19.6p per share reward is predicted to rise to 27p in the current period, and to jump again to 33.7p in 2019. This means that yields sit at an enormous 4.2% and 5.3% respectively. I am convinced that its improving balance sheet and solid earnings picture leave these estimates looking pretty rock solid.

Even bigger yields!

Vodafone Group (LSE: VOD) is another Footsie income share worthy of a place in any retiree’s investment portfolio.

The telecoms titan has long offered up market-smashing yields thanks to its tremendous cash generation. So even as earnings have fluctuated, the business has still had the strength to raise shareholder rewards.

In the 12 months to March 2018, free cash flow boomed 22% to more than €4bn. As a consequence, even though profits are anticipated to slip 8% in fiscal 2019, the City is predicting that last year’s 15.07 euro cents per share dividend will likely be maintained through to the end of next year, meaning Vodafone’s forward yield registers at 7.4%.

Those looking for value may not approve of Vodafone’s elevated prospective P/E ratio of 18.8 times. This wouldn’t deter me from splashing the cash, though, given the company’s brilliant prospects in emerging markets, a quality that is expected to put profits back on an upward path with a 14% rise in fiscal 2020. Besides, those giant yields help to take the edge off.

The post 2 FTSE 100 dividend stocks that could be ideal for retirees 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.

Some shares are genuinely undervalued by the investment community, while some trade at rock-bottom prices for a very good reason. So how do the stocks discussed below stack up?

Oversupply problems

At face value Anglo American (LSE: AAL) may be the stock of dreams for thrifty income investors. The business trades on a forward P/E ratio of 9.1 times and, thanks to predictions that the dividend will clock in at 108 US cents per share in 2018, the miner sports a large 4.9% yield.

On the downside, I am concerned that the recent cooldown in iron ore values is in danger of intensifying in the medium term and beyond, and my pessimism is reflected in current profits forecasts — Anglo American is predicted to endure a 5% earnings slip this year. And this should intensify with a 16% duck in 2019, or so say City brokers.

These pressures are expected to drive the dividend lower again next year, resulting in an estimated 97-cent reward. This may still yield an appealing 4.4%, but signs that the supply/demand imbalance in the iron ore market is set to persist and thus keep profits at Anglo American locked in a tailspin is encouraging me to keep my cash in my wallet.

Aside from the obvious dangers created by US President Donald Trump’s ‘trade wars’, I am concerned by the number of mega mining projects coming on-stream over the next several years. Just this week, for example, Rio Tinto announced plans to begin developing its Koodaideri asset in Western Australia, news which followed fresh development details on other massive projects from several other major iron ore producers in recent days.

Demand from China may well remain robust, but I doubt the Asian powerhouse can suck up all of the extra material that’s about to enter the market. This issue is reflected in Anglo American’s low forward P/E ratio, and makes the business unsuitable for those with any intolerance of risk, in my opinion.

Build a fortune

Taylor Wimpey (LSE: TW)isn’t without problems of its own due to a combination of slowing house price growth and escalating construction costs.

Despite this, however, the shortage of new homes being created in the UK means that demand is continuing to outstrip supply. Indeed, the Footsie business commented in April that “the underlying housing market has remained stable in the first four months of 2018, with continued good accessibility to mortgages at competitive rates,” and this helped its order book remain at a bulky £2.1bn as of the end of April.

Against this backcloth, the City is expecting fractional earnings growth during the present year, which is expected to rev to 4% in 2019. While hardly spectacular, these forecasts result in a forward P/E ratio of just 9.1 times. They are also robust enough to likely keep Taylor Wimpey’s dividend yields on the right side of spectacular.

A 14.9p per share payout is estimated for this year, resulting in an 8.1% yield. And the dial moves to 8.8% for next year thanks to expectations of a 16.6p dividend.

A new direction?

As I noted last time out, WPP (LSE: WPP) is facing something of an existential crisis at the present time following the departure of company architect Martin Sorrell in the spring.

It’s not all doom and gloom, however. Many of those in the know suggest that the former chief executive was slow to adapt to the changing nature of advertising in an increasingly-digitalised world, and that Sorrell’s departure will shake the cobwebs from WPP’s model and allow a new leader to bring in new ideas.

The incoming CEO will have to first address the problem of difficult trading conditions in the advertising market, as evidenced by WPP’s troubled market update last week in which it advised reported revenue for the first four months of 2018 fell 3.4%.

Signs are beginning to emerge that the end of the trough in the North American marketplace, a knock-on effect of advertising overspending in recent years, is imminent. So WPP may be in a rut at the moment, causing brokers to predict a 26% earnings dip in 2018, but things are finally starting to look up (underlined by the 5% earnings rebound forecast by the City).

A forward P/E ratio of 10.3 times is low by any standards and leaves plenty of room for an upward share price re-rating as trading numbers likely pick up from the second half of this year. And when you throw predicted dividends of 60.5p and 62.6p per share for 2018 and 2019 into the equation too — targets that yield a bulky 5% and 5.2% — well, I consider the ad ace to be a very attractive investment destination today.

Dividends blasting higher

My final selection is RSA Insurance (LSE: RSA), a business whose electric dividend rises are expected to keep on coming.

With the costs of colossal restructuring now behind it, current City forecasts are suggestive of earnings growth of 15% this year and 8% next year. Subsequently RSA — which has almost doubled the dividend over the past three years — is expected to lift the reward to 29p per share in 2018 from 19.6p last year, and again to 34p in 2019.

These projections yield a handsome 4.3% and 5.1% respectively which, along with a forward P/E ratio of 13.4 times, provide plenty of bang for investors’ bucks.

While conditions in the insurance market remain tricky, I am convinced RSA’s robust position in the UK, Canada and Scandinavia should still pave the way for bright profits growth and thus keep dividends expanding at quite a pace.

The post Could these 4 FTSE 100 high yield dividend bargains make you a million? appeared first on The Twelfth Magpie.

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Royston Wild owns shares in Taylor Wimpey. 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.

Today’s performance is clearly not reason for investors to tear their hair out. But during the past three weeks the FTSE 250 business has seen its value fall 10%, and I am tipping De La Rue’s market value to keep on deteriorating.

The firm advised that revenues rose 29% during the 27 weeks to September 30, to £244.7m, with growth reported across all divisions. At its core Currency arm, sales advanced 36% year-on-year to £185.3m, while at Identity Solutions and Product Authentication & Traceability, turnover increased 3% and 20% respectively, to £39.4m and £20.2m.

As a consequence De La Rue saw adjusted operating profit improve 11% in the six months to £26.6m.

Cash concerns

But scratch a little deeper and the performance does not appear so impressive. Indeed, chief executive Martin Sutherland commented today: “The strong revenue growth in the first half, driven by high volumes of lower margin Banknote Paper and Print orders, reflects the lumpy nature of contracts. Performance in the second half is expected to be broadly in line with the same period last year.”

Even though the outlook for De La Rue’s fraud-tackling activities remains pretty bright, I remain concerned over future demand at the company’s Currency division as the world steadily moves away from cash and technology takes over.

Another cause for concern is the rising stress on the money master’s balance sheet (an increase in working capital caused net debt to balloon by £16.5m between March and September to stand at £137.4m). And the vast amounts De La Rue is having to shell out on product development to keep revenues rising threatens to keep it mired in debt and put future dividends in peril. R&D investment increased by 33% in the first six fiscal months, it said today.

City analysts are expecting De La Rue to put recent earnings turbulence to bed with bottom-line rises of 4% and 12% in the years to March 2018 and 2019 respectively.

A cheap forward P/E ratio of 13.2 times is not enough to encourage me to invest, however, given the prospect of sliding sales in future years, nor are predicted dividends of 26.9p and 30.1p per share this year and next (figures that yield a handsome 4.2% and 4.7% respectively).

Dividend hero

Instead, I reckon those seeking jumbo earnings growth and chunky dividend yields need to pay RSA Insurance (LSE: RSA) close attention.

In 2017 the insurance colossus is expected to see profits growth rise just 3%, although expansion is expected to detonate to 25% next year. These predictions make the FTSE 100 star a great value pick as well, the share carrying a forward P/E rating of just 15 times.

Moreover, these bright earnings projections are predicted to keep dividends rising at a terrific pace — last year’s 16p per share reward is anticipated to sprint to 21p in 2017 and to 29.3p in 2018, resulting in mammoth yields of 3.4% and 4.8% for these years.

RSA saw net written premiums rise 8% during July-September, to £5.1bn, it advised in late October. And thanks to its broad geographic footprint (premiums in Scandinavia and Canada jumped 8% and 16% in the third quarter), and strong position in its core UK market (premiums here rose 5% in Q3), I am backing it to deliver brilliant shareholder rewards now and in the future.

The post I’d sell this 4% yielder to buy this FTSE 100 dividend star instead 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 fund manager announced that assets under management clocked in at £3.35bn as of June, exploding from £2.54m at the same point in 2016. And net revenues grew 7.3% year-on-year during January-June, to £10.3m.

However, Miton advised that adjusted pre-tax profit fell to £2.9m in the six months, from £3.1m in the corresponding period last year. The bottom line slip was caused by “a write-back to share-based payments… arising from the forfeiture of awards,” which totalled £430,000.

Chief executive David Barron commented: “The group continues to deliver strong investment performance and net inflows. We have continued to streamline the business and have demonstrated the scalability of our operating platform.”

And in a further reassuring step Miton advised that “trading for the full year is expected to be at least in line with current market expectations,” citing Peel Hunt forecasts predicting adjusted profit of £4.6m.

On the up

With demand for its financial products continuing to grow at a healthy rate, City consensus is suggestive of a modest 4% earnings rise in 2017. And Miton’s bottom line is predicted to pick up the pace from next year, and a 20% rise is currently predicted for 2018.

A consequent forward P/E ratio 16.2 times may not be too much to excited to get about, but I believe the AIM stock’s dividend outlook certainly is.

Last year’s 1p per share reward is expected to rise to 1.1p in the present period. And this is predicted to rise again in 2018 to 1.4p. As a consequence, yields ring in at 2.7% and 3.5% for this year and next, and I expect dividends to keep detonating as business accelerates.

Blue-chip beauty

I am convinced RSA Insurance Group (LSE: RSA) is another terrific stock selection for those seeking splendid earning and dividend expansion. And my faith is underpinned by bright broker forecasts.

The FTSE 100 star is expected to keep its recent run of double-digit earnings rises rolling with a 12% improvement in 2017. And an extra 18% rise is predicted for next year. This does not come as a surprise given that demand for RSA’s products continues to detonate — the company saw net written premiums expand 11% between January-June thanks to new business, improving client retention, as well as higher pricing and foreign exchange gains.

Current projections also make RSA terrific value on paper, the insurer’s forward P/E ratio of 14.2 times falling below the Footsie corresponding value of 15 times. And investors can bank on the firm’s progressive dividend policy to keep churning out brilliant yields too.

A payout of 21.6p per share is forecast for this year, resulting in a chunky 3.5% yield. And this leaps to 4.8% for 2018 thanks to a predicted 29.9p reward. With restructuring measures finally complete and underwriting performance picking up momentum, I reckon now is a great time for investors to pile into the financial giant.

The post 2 stunning stocks for growth and dividend-chasers 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 company saw net written premiums gallop 14% higher during January-March, it advised last month, to £1.7bn, while at constant currencies they rose 4%.

Clearly, sterling’s crash lower has helped to inflate the top line more recently, but this is not the whole story as underlying demand for RSA’s financial products continues to move steadily skywards. Indeed, volume growth accounted for 2% of the growth enjoyed during the first quarter.

In Scandinavia and Canada, premiums rose 2% and 6% at stable exchange rates, while in the UK, premiums stomped 7% higher.

Record breaker

So while RSA has seen its share price march to record highs above 630p per share this week, the firm still offers irresistible value at current share prices in my opinion.

For 2017, an expected 10% earnings rise leaves the FTSE 100 giant dealing on a forward P/E ratio of 14.5 times, below the yardstick of 15 times or below what is widely considered excellent value. And RSA is expected to keep its long-term growth story running in 2018 with a 19% advance.

Its bright profit outlook is expected to keep powering dividends skywards. The insurer is expected to pay a 21.7p per share dividend this year, up from 16p in 2016 and producing a chunky 3.4% dividend yield. For 2018, the yield leaps to 4.7% thanks to an estimated 29.4p reward.

Bottle up bumper returns

Juice giant Britvic (LSE: BVIC) is another London stock offering plenty of excitement to dividend chasers.

Although the business is expected to endure a rare earnings dip in the 12 months to September 2017 — a 2% decline is currently anticipated — this is not expected to put a dent in Britvic’s long-running progressive dividend policy. A 25.4p per share payment is currently estimated for the year to November 2017, up from 24.4p and yielding 3.6%.

Moreover, the estimated dividend steps to 26.6p for next year, supported by a predicted 5% profits improvement and nudging the yield to 3.8%.

And current earnings projections also make the Robinsons and J2O maker a great value pick, the business trading on a forward earnings multiple of just 14.6 times.

Britvic saw revenues increase 11.5% during the six months to March, to £756.3m, with organic sales bubbling 3.7% higher during the period. This helped earnings before exceptional items rise 6.7% year-on-year to £73.6m.

The Hertfordshire firm saw all of its units reporting growth during the period. And while the company may face increased headwinds in the UK as rising inflation crimps shopper spending power, I am confident Britvic’s cluster of market-leading labels should allow it to deal with the worst of these problems.

Besides, it can also look to its international divisions to deliver brilliant sales rises, and particularly as the company ramps up its exposure to the white-hot growth markets of the Americas.

With Britvic also stepping up measures to drive cost efficiency, I fully expect dividends at the company to keep growing at a healthy rate.

The post 2 dirt-cheap dividend stars that could make you rich appeared first on The Twelfth Magpie.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Britvic. 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.

Improving performance

Reporting on Thursday was insurer Esure (LSE: ESUR). It has gone from strength-to-strength since its demerger of GoCompare last year. It has left the business leaner and more focused, which is evidenced by its improving financial performance.

For example, in the first quarter of the year the company recorded a rise in gross written premiums of 24.1%. This was despite some weakness in its Home division, where gross written premiums declined by 4.5%. Due to this, the company has decided to temper its growth in home insurance, since market conditions do not currently present opportunities for profitable growth. By contrast, the Motor division recorded a rise of 29%, which indicates a buoyant market after a change to the Ogden discount rate.

Looking ahead, Esure is expected to grow its earnings by 12% in the next financial year. This puts its shares on a price-to-earnings growth (PEG) ratio of just one, which indicates there may be considerable upside potential on offer. Since the company offers a yield of 4.5% from a dividend which is covered 1.5 times by profit, it could become an increasingly popular income stock in the medium term.

Growth potential

Also making changes to its business model in recent years has been RSA Insurance (LSE: RSA). The company has made numerous asset disposals as part of a major restructuring aimed at reducing risks and improving its capital resilience. According to its first-quarter update which was released on Thursday, its turnaround is nearing completion. It has disposed of UK legacy operations and its entire focus is now on its drive for outperformance.

Evidence of its improving performance includes a 14% rise in group net written premiums when compared to the first quarter of 2016. Furthermore, the company’s operating profit in the first quarter was ahead of its plans, while its underwriting performance was also impressive.

Looking ahead, RSA is forecast to record a rise in its bottom line of 8% in the current year. It is due to follow this up with growth of 17% next year. This puts it on a PEG ratio of just 0.7 and means a higher dividend may be affordable. In fact, the company is expected to increase shareholder payouts by 84% during the next two years. This puts it on a forward dividend yield of 4.8%, which suggests now may be the perfect time to buy it.

The post Why I see more upside ahead for these dividend shares appeared first on The Twelfth Magpie.

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• 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?
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Peter Stephens 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.

The property developer is expected to see earnings moderate in the near-term as the rampant growth in home prices draws to a close. Indeed, bottom-line expansion of 6% and 4% is pencilled-in for the periods to July 2017 and 2018, a sharp decline from the 39% rise Bellway enjoyed last year.

Latest data from Halifax showed house values rose just 5.1% in February, the slowest rate since July 2013.

However, Bellway should remain a reliable earnings generator as government plans to kick-start homes construction continue to yield very little and generous mortgage rates persist.

Against this backcloth, Bellway is anticipated to pay a 110.8p per share dividend in 2017, yielding a stonking 4.1%. And the yield rises to 4.4% in 2018 thanks to an expected 119.1p payout.

Insurance star

With revenues powering higher and the balance sheet becoming ever-stronger, the dividend outlook is getting steadily brighter at RSA Insurance (LSE: RSA).

The financial giant hiked the dividend by an eye-popping 52% in 2016, to 16p per share, as group profits went through the roof. Indeed, the company saw operating profit soar 25% last year to £655m, reflecting the hard work RSA Insurance has made in stripping out costs and slimming down to concentrate on key geographies in Europe and North America.

And the insurer’s restructuring plan is not done yet, RSA Insurance upgrading its cost reduction target again just last month — the business now aims to cut expenses by £400m per annum by 2018, up from its prior target of £350m.

This naturally bodes well for dividends in the near term and beyond, and the City expects rewards of 21.5p per share in 2017 and 29p in 2018.  These projections mean the yield jumps from 3.6% this year to 4.9% in 2018.

I reckon RSA Insurance’s heroic turnaround strategy now makes it an excellent long-term dividend pick.

Keep on trucking

The fruits of huge restructuring over at Stobart (LSE: STOB) should also deliver stunning dividend flows, in my opinion.

The company has big plans to turbocharge revenues from its Energy, Rail and Aviation divisions. At its flying arm Stobart is steadily stepping up expansion at Luton Airport and last month bought the outstanding 33% stake in aircraft leasing firm Propius Holdings from Aer Lingus..

Elsewhere, a steady stream of recent contract wins has helped Stobart’s railway pipeline to continue to bulge. And at its energy operations, Stobart plans to deliver more than 2m tonnes of biomass fuel by the close of next year.

The City currently has dividends of 12p per share chalked in for the years to February 2017 and 2018, giving Stobart a monster 6.2% yield. And I reckon dividends should continue to outperform the broader market as sales stream in across the business.

The post 3 great dividend stocks for your ISA appeared first on The Twelfth Magpie.

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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.

With Britain’s housing crisis showing no signs of easing, I am convinced Taylor Wimpey (LSE: TW) should keep delivering exceptional returns long into the future.

While mortgage rates may have crept modestly higher recently, overall lending conditions still remain favourable for first-time buyers. Moreover, as economic uncertainty also caps the number of existing properties entering the market, home prices are remaining well supported.

As a consequence the City expects earnings at Taylor Wimpey to maintain their solid upward trajectory, and rises of 4% and 5% expected in 2017 and 2018 respectively, resulting in ultra-cheap P/E ratios of 9.7 times and 9.2 times.

And Taylor Wimpey also offers excellent rewards for dividend chasers, the firm throwing out blockbuster yields of 7.8% for this year and 8.4% for the next period.

Financial favourite

I reckon RSA Insurance (LSE: RSA) is also a stellar pick for those seeking sterling growth and income prospects.

The insurer’s long-running restructuring plan took another significant step this month with the sale of £834m worth of UK legacy insurance liabilities related to Enstar Group, boosting the firm’s balance sheet and giving its earnings outlook a shot in the arm.

With the heavy lifting now almost out of the way, the ground is now laid for RSA Insurance to double-down on its core territories of the British Isles, Scandinavia and Canada. And strength across these regions helped power operating profit 25% higher during 2016, to £655m, the firm announced this week.

And the City expects earnings to keep rattling higher, pencilling-in growth of 51% this year and 18% in 2018, resulting in P/E ratios of just 13.8 times and 11.8 times.

Furthermore, RSA Insurance’s splendid profits prospects are anticipated to light a fire under dividends — indeed, a yield of 3.5% for the current period is expected to leap to 4.7% next year.

Manufacturing marvel

I also believe diversified engineer GKN (LSE: GKN) is on course to deliver great shareholder gains as auto-building rates continue to race higher.

Researcher IHS Markit forecast just this week that, despite the impact of political uncertainty in the US and Europe in 2017, surging South Asian demand should still propel global car sales 1.5% higher from last year’s levels, to 93.5m units.

GKN supplies parts for 90% of the world’s auto manufacturers, but the car industry is not the only reason to invest in the business. The Redditch firm is also a major supplier to the global aerospace industry, and has executed clever acquisitions like that of Fokker in recent times to boost its supply capabilities to the world’s biggest planebuilders.

The number crunchers have chalked-in earnings expansion of 13% and 5% in 2017 and 2018 alone, figures that produce attractive earnings multiples of just 10.7 times and 10.2 times.

While dividend yields may be less appetising — yields clock in at a handy-if-unspectacular 2.7% and 2.8% for 2017 and 2018 — I believe GKN’s leading position in growing markets should keep sending payouts comfortably higher in the years to come.

The post 3 FTSE 100 stocks perfect for growth and income investors appeared first on The Twelfth Magpie.

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