Barratt Developments and Taylor Wimpey, for example, have been supported by the steady stream of positive trading updates from London’s clutch of listed builders. Their share prices have hit record peaks after record peaks in that time but, by comparison, AIM-listed Springfield Properties (LSE: SPR) for one hasn’t seen its market value make any progress in that time.

Great financials

Investors in the Scottish business charged for the exits following interim results of late February and have yet to return. Quite why market appetite eroded to such an extent was a surprise then, and remains so now, given the strength of that release and subsequent ones from its rivals. Springfield advised revenues leapt 25% between June and November to £75.7m, and gross profit margins rose 180 basis points to 17.2%. Profits at the firm almost doubled to £6.1m, prompting it to hike the dividend a juicy 20% to 1.2p per share.

Conditions at the construction colossus appear to be doing anything but weakening, putting a question mark over the reasons behind February’s sell-off. In fact, the company advised that “with the sustained market drivers showing no sign of abating, Springfield is in a stronger position than ever to deliver many of the new private and affordable homes needed in Scotland.”

A robust marketplace

And you needn’t just take Springfield’s word for it. Underlining the strength of homebuyer demand in Britain, a phenomenon facilitated by über generous mortgage products and the government’s Help To Buy scheme, fresh data from UK Finance last week showed the total number of loans for the purpose of house purchase soar 9.3% in March.

What’s more, while house sales have dampened in the London and the South East since the Brexit vote, reflecting increased fears of a long-overpriced market, demand north of the border remains rock solid. Sure, latest HM Land Registry figures may have shown average property values in Scotland fell 0.2% in February, but this was the first fall for almost three years and, more than likely, represents a small blip.

Dividends rocketing higher

City brokers seem confident about the health of the Scottish homes market and are therefore expecting Springfield to follow a predicted 22% earnings rise in the year to May 2019, with a further 15% rise in the following period. And, as a consequence, the builder’s expected to keep supercharging dividends too, meaning that a chunky yield of 4% for the outgoing period leaps to 4.8% for fiscal 2020.

At current prices, Springfield is also attractive in relation to its earnings prospects, the business carrying a forward P/E ratio of just 7.5 times for the year that’s about to start.

All things considered, I reckon this AIM stock is a forgotten hero to buy today and one to cling onto for many years to come, or even forever.

The post A ‘forgotten’ dividend growth stock I’d buy and hold forever appeared first on The Twelfth Magpie.

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• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Royston Wild owns shares of Barratt Developments and 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.

Profits at the homebuilder may not be booming like they once were in the current climate, but due to the scale of Scotland’s homes shortage, I’m confident the bottom line can continue to grow and the company can continue to keep raising dividends as well.

Interim results released in January certainly encouraged me as Springfield announced that, as pre-tax profits more or less doubled to £6.1m in the six months to November, it was raising the half-time dividend 20% to 1.2p per share. News the business was carrying a “strong order book” into 2019 bolstered my bullishness still further.

With Springfield supercharging build rates, the number crunchers expect the firm to keep growing dividends by double-digit percentages this year and next. And this means last year’s 3.7p per share total payout is tipped to rise to 4.5p this year, and to 5.5p in fiscal 2020, figures that yield a massive 4% and 4.8%, respectively.

The 5% yielder

If you’re hungry for yield then Tritax Big Box (LSE: BBOX) is another safe-as-houses selection to park your cash in.

The breakneck growth of e-commerce means that demand for its big box logistics facilities is going from strength to strength, as highlighted by full-year results earlier this month. Net asset value per share rose 7% year-on-year to 152.83p in 2018, while its portfolio value rose by almost a third to £3.42bn and contracted yearly rent rolls leapt 28% to £161.12m. And the firm remains committed to expanding to boost profits (it made eight acquisitions last year alone).

Tritax lifted the full-year dividend 5% last year to 6.7p per share, and it isn’t a surprise to the number crunchers estimating that the trading environment will facilitate more medium-term payout growth. A 6.9p dividend is predicted for this year, yielding an exceptional 4.8%. And the 7.2p reward anticipated for 2020 yields 5%.

Stunning 7.5% yields

For investors seeking truly-titanic dividend yields then Hastings Group (LSE: HSTG) is hard to look past.

The car insurance giant impressed the market again last month with its efforts to grab clients from its competitors, the number of live policies jumping 3% in 2018 to 2.71m in an increasingly-tough marketplace. This led to pre-tax profits also increasing 3% to £130.6m, and with free cash generation booming 42% year-on-year, Hastings raised its payout ratio target for 2019 and beyond to between 65% and 75%, up from a prior goal of 50% to 60%.

This policy change means that City brokers are minded to predict a 14.5p per share dividend at Hastings for 2019, up from 13.5p last year, and resulting in a giant 6.7% yield. And things get even better for 2020, the touted 16.1p dividend nudging the yield to 7.5%. I reckon the FTSE 250 firm is a top buy for income investors today.

The post 3 ultra-high-yield dividend stocks I’d buy with my last £1k appeared first on The Twelfth Magpie.

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• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Tritax Big Box REIT. 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 as I explained in a recent article, there’s no shortage of exceptional income stocks from outside the Footsie that could help you to make a fortune. In this article, I’m looking at some of the lesser-known big yielders that may boost your investment income.

Revenues are soaring

I’m not one to relish in others’ misfortunes but now could be a great time to pile into insolvency expert Begbies Traynor Group (LSE: BEG).

The British economy is listing and this AIM-quoted business is reaping the rewards of this fertile environment and revenues are rising at quite a pace. I’m not expecting demand for its services to die back either as, whatever Brexit path the country follows, some economic turbulence can be expected at least in the short-to-medium term.

I’m also encouraged by Begbies Traynor’s steps to build long-term growth through acquisitions. This month alone, its snapped up two businesses to bolster its operations, first with the takeover of transport-advice specialist Croft Transport Planning & Design, and then the purchase of insolvency practice KRE (North East) Limited.

City analysts are predicting strong earnings growth through the next couple of years and meaty dividend increases, too. This means that payout yields sit at an enormous 4.1% and 4.5% for this fiscal year and next, respectively.

Build a fortune

Another big yielder from the AIM market to sink your teeth into is Springfield Properties (LSE: SPR), the construction colossus sporting big figures of 3.7% for this year and 4.4% for the following year.

Time and again, I’ve lauded the Scottish housebuilder’s investment prospects thanks to the UK’s enormous homes shortage that’s keeping its newbuilds well bought. It’s a phenomenon that is powering profits steadily higher across the housing sector, and one that’s likely to remain in place for a long time yet given the lack of serious government inaction to ratchet up building rates.

In the immediate term too, the favourable lending environment is helping to keep homebuyer demand on the boil, and I’m not expecting this support to ebb away given the intensifying mortgage rate war being fought by Britain’s lenders. And this leads City brokers to predict that Springfield’s annual earnings should keep growing by double-digit percentages at least for the next few years.

An added bonus with both Begbies Traynor and Springfield Properties as that both firms sport very-appealing valuations right now, i.e. forward P/E ratios of just 7.5 times and 9.4 times, respectively. This is a snip given these secret investment stars’ potential to deliver brilliant earnings and dividend growth now and for many years into the future. I reckon they’re both great stocks to load up on right now.

The post Calling income investors! Should you ignore the FTSE 100 and buy these unknown dividend stocks instead? appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in 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.

There are plenty of things that we here at The Motley Fool don’t agree on, but we are united in our bearish view of the buy-to-let segment for 2019 and beyond. Rents are sliding, tax relief is receding, fresh interest rates are threatening to rise again, and the regulatory hoops that landlords have to leap through are rapidly increasing. It’s a market whose popularity is dropping through the floor at a shocking rate.

That’s not to say that avoiding property investment, and particularly that connected to the residential market, is a wise decision for next year though. Indeed, I’ve long argued that the UK’s chronic homes shortage leaves plenty of scope for the listed homebuilders to keep generating brilliant profits and market-beating dividends next year and beyond.

Risk-averse investors may be tempted to give builders with significant exposure to London like The Berkeley Group a wide berth given the rate at which property prices are falling in the capital. On the whole, though, the market remains pretty robust.

The latest report from the Royal Institution of Chartered Surveyors (RICS) illustrates this perfectly. In it the body advised that with “national house price growth likely to come to a standstill… the lack of supply should prevent outright falls.”

In fact, home values in some parts of the UK are actually flying, and price projections in the RICS survey suggested that they could continue to do so. According to the body, “Northern Ireland, the North West of England, Wales and Scotland continue to return firmly positive projections, implying price growth will retain solid momentum over the year ahead.”

Dividends + growth

Springfield Properties (LSE: SPR) was a share that sprang (no pun intended) to the front of my mind when reading the RICS report. It’s one of the biggest homebuilders in Scotland, and its latest trading statement this week underlined the strength of the market there.

The AIM company declared that it entered the financial year in June with a “strong and established pipeline” thanks to the growing requirement for affordable and social housing sector homes north of Hadrian’s Wall. This solid demand has continued in the first six months of the period, it said, meaning that sales and revenues across both its private housing and affordable divisions had increased compared with a year earlier.

With demand still outstripping supply, and the Scottish government continuing to help develop the country’s stock of affordable housing, Springfield said that it is “confident of delivering strong growth for [the] full year.”

City analysts are also pretty bullish on Springfield’s medium-term outlook and they currently predict an 8% bottom-line rise in the 12 months to May 2019. Not bad, but I can see this figure being upgraded to bring it closer to the 17% advance estimated for fiscal 2020, so healthy is the state of the Scottish market. Therefore Springfield’s low, low forward P/E ratio of 9 times seems to be even more of a bargain, in my opinion.

To cap things off, Springfield is also a great dividend pick thanks to its jumbo yields of 4.2% for this year and 5% for next year. All things considered, I think it’s a top buy, not just for 2019, but that it has the capacity to provide stunning shareholder returns for many years into the future.

The post Buy-to-let may collapse in 2019! I’d much rather buy this big-yielding property stock appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in 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.

However, FTSE 100 shares such as RBS (LSE: RBS) could deliver significantly higher income returns over the long run. The company is expected to rapidly grow its dividends over the next couple of years so that it yields around 6% in 2019.

However, it’s not the only dividend stock which could be worth a closer look. Reporting on Monday was a housebuilder that could deliver improving income prospects in my opinion.

Impressive outlook

The company in question is Scottish housebuilder Springfield Properties (LSE: SPR). It released a trading update for the six months to 30 November which indicated that strong demand has continued throughout the period. The underlying requirement for more homes in Scotland for private individuals as well as across the social housing sector has continued. This supported good progress in completions and revenue growth across the business.

Clearly, there is considerable uncertainty in the near term regarding the prospects for the UK economy. This could cause the stock to become increasingly unpopular among investors at a time when a risk-averse attitude is becoming more prevalent. However, with a shortage of supply being outstripped by increasing demand, the fundamentals of the industry appear to be sound.

With Springfield Properties having a dividend yield of 4.2% from a payout which is covered 2.7 times by profit, it appears to have a bright income outlook. A price-to-earnings growth (PEG) ratio of 0.4 suggests that the stock may also be able to offer improving capital growth in the long run.

Changing business

After a number of years without paying a dividend, RBS is set to become one of the highest-yielding shares in the FTSE 100 over the space of around two years. As mentioned, it is expected to yield 6% in the 2019 financial year, with a mix of a rapidly-rising dividend and a weak share performance being contributing factors.

With the bank’s profitability expected to increase by 6% in the current year, followed by 5% growth next year, it appears to be performing well. Certainly, the UK economy may undergo a period of weakness due in part to fears surrounding Brexit. But with the economy’s growth outlook still being relatively high at 1.6% per annum according to forecasts, weak investor sentiment could present a buying opportunity for UK-focused stocks such as RBS.

Clearly, the bank is still not as financially strong as many investors would have hoped it to be a decade after the financial crisis. However, rising dividends suggest that its management team is confident in its outlook, and a PEG ratio of 1.6 may indicate that it offers capital growth potential alongside an improving income return. As such, now could be the right time to buy it for the long term.

The post Forget a cash ISA. I’d pick up a 6% dividend yield from FTSE 100-member RBS’s share price appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Royal Bank of Scotland Group. 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.

I’m delighted to say that latest financials from the Scotland-focused builder released last week vindicated my bullishness. Springfield declared that revenues shot 27% higher in the 12 months to May, to £140.7m, with sales at its Private Housing and Affordable Housing divisions rising 18% and 60% respectively. The terrific top-line result grew adjusted profit before tax to £9.8m, up 46% year-on-year.

And to the cheer of income chasers this bright result, allied with a significant improvement in the balance sheet (net debt more than halved to £15.3m in the last fiscal period) prompted the AIM-listed business to pay a maiden dividend of 3.7p per share.

Springfield looks in terrific shape to keep making decent progress, in the near term at least. It commented that it “entered the new financial year in a stronger position than at the same point of the previous year. With an established pipeline, strengthened foundations and the long-term drivers showing no sign of abating, the board is confident of delivering strong growth for full year 2018/19 in line with market expectations.”

Demand for affordable housing booms

City analysts are currently expecting the housing star to report a 27% earnings improvement in fiscal 2019, but this is not the end of the story. With homes demand north of the border comfortably outstripping supply and driving sales of Springfield’s new-builds, and the business also expanding its building programme across Scotland, another 16% earnings rise is predicted for fiscal 2020.

And with the homes shortage in the region set to last long into the future, who would bet against the company extending its run of brilliant profits growth beyond this period?

I am particularly excited by the probability of additional eye-popping sales growth at Springfield’s Affordable Housing arm. The Scottish government has made increasing the amount of low-cost properties a policy priority and it plans to have created 50,000 more of these homesteads in the five years to 2021.

Springfield last year successfully secured a local authority contract worth £45m to work across 10 sites over the next three years. In the current climate I wouldn’t rule out the company making more progress on this front.

Huge dividend yields

Despite its bright growth outlook, Springfield can be picked up on a forward P/E ratio of 9.1 times, comfortably inside the accepted bargain level of 10 times and below.

But growth and value seekers aren’t the only people who should be excited right now. Income chasers should toast the news that City analysts are tipping a 5.2p per share reward for this year, resulting in a vast 4.2% yield. And in fiscal 2020 the dial moves to 4.9% thanks to an estimated 6.1p dividend.

Springfield is a share I reckon could make investors a packet in the years ahead. In fact, I believe the business should continue to impress the market through the next decade at least.

The post Have £2,000 to invest? A cheap growth AND dividend stock I’d buy and hold for the next 10 years appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in 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.

But there’s plenty of beautiful big-yielders outside Britain’s premier share index that you should seriously consider today. These are just a couple of them…

Homes giant

I’ve made no secret of my belief that the UK’s shocking housing shortage is here to stay.

Indeed, the uncertainty facing the domestic economy is the worst that it has been for many years and yet homebuyer demand, helped by historically-low interest rates, the government’s Help to Buy purchasing scheme, and growing competition in the mortgage market, continues to outpace supply.

Springfield Properties (LSE: SPR) underlined this favourable backdrop when it released fresh trading commentary last month. In it the AIM-quoted business advised that “[we] made significant sales and profit progress in the first half of 2017/18, with the momentum being maintained through the second half of the year.”

Profit before tax is likely to rise 43% in the 12 months ended May, it advised, in line with the forecast upgrades made in February. Continuing the recent run of upgrades, however, Springfield added that revenues are likely to have shot 27% higher, above earlier expectations and thanks to accelerated completion of the sites it bought from Redrow around the turn of the decade.

Don’t miss out

Clearly, Springfield is a company still on the up and this is reflected in City forecasts which are suggestive of earnings rises of 51% and 16% in fiscal 2019 and 2020, respectively.

And these give rise to predictions of impressive dividend growth during this period. Last year’s anticipated payout of 3.7p per share is expected to rise to 5.2p in the present period and to 6.1p next year, figures that create giant yields of 4.5% and 5.1%.

And as I say, the outlook for the Scottish developer is extremely bright beyond the medium term, helped by its desire to keep building its land bank through selective M&A and organic investment. In late July, it snapped up 400 acres of zoned land in West Lothian, one of the fastest-growing residential housing markets in the country, to order to create a 1,900-home site there. 

Right now, Springfield can be picked up a dirt-cheap forward P/E ratio of 8.4 times.

Marketing star

 The other income stock I’m looking at is Communisis (LSE: CMS), which also carries a valuation under the accepted bargain benchmark of 10 times and below, on this occasion, a prospective P/E multiple of 8.5 times.

What’s more, although earnings are expected to flatline in 2018, the marketing giant’s strong balance sheet still means it is expected to grow the dividend to 2.8p per share, from 2.66p last year. And this results in a chunky 5.2% yield.

Furthermore, next year a 10% annual earnings improvement is forecast at the small-cap, giving support to a predicted 2019 dividend of 2.9p. Thus the yield marches to an even-better 5.4%.

It’s easy to see why brokers are so optimistic. Business continues to roll in from all over the world, driving revenues at Communisis 9% higher during January-June, a period which also saw it ink a major contract with Zurich Insurance Group, among others. And by expanding its global presence, Communisis is set to keep adding to its esteemed client list.

The post Cheap and EXTREMELY cheerful! Two 5%+ dividend yields that could help you to retire in comfort appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in 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.

As a result, now could be the perfect time to buy high-yield shares such as Aviva (LSE: AV). They may offer lower valuations due to reduced demand from investors, yet they could deliver FTSE 100-beating returns over the next few years.

Improving prospects

While Aviva has a yield of 5.6% at the present time, the insurance company offers strong dividend growth potential over the next couple of years. Its bottom line is due to rise by 8% next year, and this is set to make a higher shareholder payout more affordable. In fact, dividends are expected to rise by 9.2% per annum in the next two financial years. This puts the stock on a forward dividend yield of 6.7% next year, which would make it one of the highest-yielding shares in the FTSE 100.

Even though dividends per share are expected to rise rapidly over the medium term, Aviva’s financial standing is due to remain sound. Its dividend payout ratio is forecast to be 52% next year, which suggests there is scope for a higher proportion of earnings to be paid out as dividends. This would be in line with the company’s wider strategy to reward shareholders for its continued success.

Looking ahead, Aviva seems to be well-protected from the potential impact of Brexit. It has a diverse business model, with international growth being high. As such, now could be the perfect time to buy it, with a rising dividend having the potential to boost investor sentiment.

Improving performance

Also offering impressive dividend growth potential is leading housebuilder in Scotland, Springfield Properties (LSE: SPR). The company released a positive trading update on Monday which showed that profit is expected to rise by 43% in the year to 30 June 2018, with revenue due to be around 27% higher than in the previous year.

The company has continued to see a relatively robust level of demand for its properties. With demand exceeding supply across large parts of the UK and mortgage availability being high, the wider sector could experience further growth. This is expected to help the company to deliver earnings growth of 28% in the current year, followed by further growth of 16% next year. This puts the stock on a price-to-earnings growth (PEG) ratio of just 0.7, which suggests that it offers a wide margin of safety.

With the company having a dividend yield of 3.4% from a payout that is covered 2.6 times by profit, the prospect of rapid dividend growth seems high. As such, the stock could hold appeal for both income and growth investors alike, with its shares appearing to be undervalued at the present time.

The post Why now could be the time to buy into FTSE 100 member Aviva’s share price appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Aviva. 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.

Springfield Properties (LSE: SPR) is one such share I reckon share pickers are far too pessimistic about as I write today.

The Scottish company, which was only admitted to AIM trading in October, is expected to print earnings of 9.1p per share for the year to May. And City analysts are expecting it to build on this with rises of 16% and 11% in fiscal 2019 and 2020 respectively.

And I believe Springfield — which specialises in housing north of the border — has what it takes to make good on these forecasts. Its latest financial release showed revenues leaping 11% during the six months to November, to £54.8m, a result that powered pre-tax profit 20% higher to £3.1m.

What’s more, the company continued to invest in its land bank to keep revenues rising, lifting it to 10,605 plots in the period from 9,195 plots six months earlier, and the number of active sites to 29 from 25 in May, to help it remedy Scotland’s chronic homes shortfall.

Make no mistake, supply is likely to continue outstripping demand in the homes market for some time yet, a scenario that should keep propelling profits and dividends higher at Springfield as it steps up its building plans.

Looking more closely at dividends, with the company also taking bites out of its debt pile (net debt fell to £13.7m as of November from £31.1m a year earlier), the predicted payout of 3.7p per share for the current year is expected to shoot to 4.3p in fiscal 2019 and to 5p next year. These projections of significant dividend growth drive a handy 3.1% yield in fiscal 2018 to 3.6% next year and 4.2% in the following period.

With anticipated payments covered by earnings estimates by around 2.5 times through to the close of next year, comfortably inside the accepted security terrain of 2 times or above, I reckon Springfield is a great bet to make good on these estimates too.

The 5% yielder

Go-Ahead Group (LSE: GOG) is another income share investors need to consider today even if it is not expected to deliver the same sort of earnings performance as the homebuilder, at least not in the medium term.

City brokers are predicting earnings dips of 16% and 11% for the years ending June 2018 and 2019 respectively, these numbers reflecting the difficulties the Go-Ahead is facing in both the rail and bus markets. However, thanks to its strong balance sheet, the FTSE 250 business is expected to still keep dividends on hold at 102.08p per share through the next two years, cementing the yield at a terrific 5.4%.

Now Go-Ahead still has some way to go before its turnaround strategy can be considered a success. But in my opinion this is more than reflected in the transport giant’s low forward P/E multiple of 10.3 times.

The post 2 dividend stocks that are absurdly cheap right now appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in 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.

Indeed, the AIM-quoted business underlined the robustness of the market in its latest trading statement on Tuesday, a release that sent its share price 7% higher and to record tops of 119p.

Springfield declared that, thanks to a 10.5% improvement in revenues during June-November, to £54.8m, adjusted pre-tax profit rocketed 19.6% to £3.1m. The number of completions rose 6% to 280 new homes, it added, with sales rising across both its Private Housing and Affordable divisions.

The business, which focuses on building homes north of Hadrian’s Wall, also noted that conditions remain pretty rosy looking ahead. Executive chairman Sandy Adam commented: “We have entered the second half of our financial year with a strong order book of contracted revenues and, together with sustained market drivers including a supportive Scottish Government policy, Springfield is poised to play a significant part in the delivery of the many new private and affordable homes needed across Scotland.”

City analysts certainly expect profits to pound higher beyond the current year — bottom line rises of 23% and 12% are forecast for 2018 and 2019 respectively. Yet despite its bright outlook, Springfield deals on a forward P/E ratio of 11.1 times.

Given that Britain’s chronic homes shortage is unlikely to be remedied any time soon, I reckon Springfield is a brilliant bargain growth share to be seriously considered today.

Looking good

The outlook for much of the UK retail sector is pretty grim, let’s make no bones about it.

From sellers of big-ticket items like car dealership Pendragon, right through to specialists in the budget retail segment like clothes seller Bonmarche, a combination of plummeting consumer confidence and falling real earnings is creating havoc for many of the country’s listed retailers.

There are a few bright spots for stock pickers in these choppy waters, however, in their search for abundant investment returns. One such share I believe should still make investors a packet is sportswear colossus JD Sports Fashion (LSE: JD) thanks to its European expansion strategy.

Just last month the FTSE 250 business affirmed the success it is enjoying on foreign shores by proclaiming: “We remain pleased with the continuing momentum of our international business which forms a fundamental pillar of our growth strategy.” This success led it to say pre-tax profit for the full-year to January 2018 will hit the £300m mark, beating previous expectations of between £270m and £295m.

JD opened 23 new stores across continental Europe in the first half of last year, but the company is casting its net further afield too, in order to give revenues an extra dose of rocket fuel. As well as setting foot in Australia last year, the business also added new stores in Malaysia, and in the autumn entered the South Korean footwear market by inking a JV with local retail giant Shoemarker.

City analysts are expecting JD to follow a predicted 24% earnings advance in fiscal 2018 with extra rises of 9% this year and 10% next, assisted by its ongoing expansion programme as well as its unique brand relationships with the biggest sports companies, putting it at the cutting-edge of the sports fashion segment.

A forward P/E ratio of 15.1 times is too cheap given its growth programme and resilience in difficult domestic markets.

The post 2 top growth stocks I’d buy in March 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 Pendragon. 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.