Why? Well I consider it to be far too cheap right now. It’s forward P/E ratio of 12.7 times, falling well below the accepted value watermark of 15 times and below.

As we all know, broadcasting is changing at a rapid pace too. Whether it’s because of the growing army of vloggers communicating to their growing audiences via YouTube, traditional broadcasters looking to bring watchers into the heart of the action, or virtual reality taking over as the next big thing in the viewer experience.

Vitec is a company that’s in great shape to exploit these trends. Its broad range of cameras, lighting, monitors and other technologies, capture the imagination of both independent content creators and broadcasters, paying testament to the vast investment this small-cap dedicates to R&D as well as the expertise of its product design teams.

Tech titan

There’s a reason why Vitec’s profits hit record peaks in 2018 and, judging by commentary last week, it remains on course to keep delivering all-time highs. It said its previous forecast for further progress in 2019 “remains unchanged” and that it expects “a strong 2020,” with sales likely to be supported by the Summer Olympics and the US Presidential election.

The camera colossus has proved a hit with income chasers in recent years and, in 2018 alone, hiked the full-year dividend by more than 20% to 37p per share. City analysts are currently predicting a 39.3p reward for 2019, one which yields a chubby 3.4%. But I reckon this is looking a bit light.

I fully expect, given Vitec’s bright profits outlook for the near-term and beyond, not to mention its stunning ability to build cash (free cash generation swelled by £10m to £33.5m last year) for the actual payout to storm past current consensus estimates.

Travel tsar

WH Smith (LSE: SMWH) is another top dividend grower where I think payouts may surprise to the upside, a factor which makes it a great income stock despite its modest forward yield of 2.9%.

The retailer raised the full-year dividend 12% in the year to August 2018 to 54.1p, and City forecasts currently suggest a smaller rise, to 57.9p payout, is on the cards for fiscal 2019.

Like Vitec though, a bright profits picture stretching long beyond the near term should give WH Smith the confidence to introduce another hefty dividend hike.

This was laid bare in newest trading details last week in which it advised sales at its Travel business were up 26% in the 11 weeks to mid-May. That reflects the massive investment made in its UK and international operations, and the vast revenues potential here as the number of global travellers booms.

The FTSE 250 firm certainly has the balance sheet strength to effect another meaty change too.

So while WH Smith deals on a not-exactly-cheap forward P/E multiple of 17.4 times, I reckon its sudden price slump over the past six weeks makes it a highly-attractive dip buy today.

The post These top dividend stocks are on sale! I reckon now’s a great time to buy them 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 Vitec Group and WH Smith. 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 results came in as the market expected. Revenue is 9% higher than the year before and diluted earnings per share lifted 13%. The directors expressed their confidence in the outlook by raising the full-year dividend by 8%.

A story of success

The real story with MacFarlane is its long run of earnings and dividend growth that propelled the share price up more than 200% over the past five years. At today’s 83p, the forward price-to-earnings (P/E) ratio sits around 11.5 for 2019, and the forward dividend yield is 3%. According to City analysts following the firm, earnings look set to rise 32% in the current year and 4% in 2019, which means the dividend payment will likely be covered about three times. Given the expected growth, I think the valuation is fair.

The good trading enabled a reduction in net borrowings by £1m, down to £14.3m, and the pension deficit fell by £2.7m, down to £11.8m, which the firm puts down to the deficit recovery contributions it made in the year. Such progress strengthening the balance sheet should help support the firm’s forward growth.

Chairman Stuart Patterson tells us in the report that the company aims to expand by concentrating on added-value products and services, as well as seeking efficiency improvements, and keeping an ear to the ground for value-enhancing acquisitions. The outlook is positive, and I see any weakness in the stock now as an opportunity to hop aboard the longer-term growth story.

Resurgent earnings growth

Meanwhile, photographic and image products specialist Vitec Group (LSE: VTC) posted its full-year results today and the shares have gone up around 4%. The bigger story here is that the shares have more than doubled since the summer of 2016 due to a resurgence in earnings growth. Today’s results continue that operational trend, with adjusted revenue from continuing operations 6.4% higher than the year before and adjusted basic earnings per share up a little over 11%. Net debt reduced by 43% down to around £43m, and the directors showed their confidence in the outlook by raising the total dividend by just over 12%.

The company has been busy in 2017 adjusting its business to capture the growth markets of the moment and disposed of two non-core businesses to fund the acquisitions of JOBY, Lowepro, and RTMotion. Chief executive Stephen Bird tells us in the report that the integration of these new brands is going well, saying that “Vitec has a strong position in exciting and fast-changing markets”.

City analysts are predicting earnings growth of 22% in 2018 and 10% in 2019. At today’s share price around 1,120p, you can buy into that growth trend for a forward P/E rating of about 13 for 2019, and the forward dividend yield is around 2.9%. Those forward earnings should cover the payment 2.7 times. I think the valuation seems fair for the growth on offer and see these as two attractive growth stocks that could double again.

The post 2 attractive growth stocks that could double again appeared first on The Twelfth Magpie.

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Kevin Godbold 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.

Vast restructuring and cost-cutting has enabled the British Airways and Iberia operator to overcome the woes of many of its rivals to post strong and sustained earnings growth in recent times. And soaring passenger numbers (up 6.1% during December) make me confident that profits can keep on booming.

IAG is of course a major player in the highly lucrative transatlantic arena, a segment in which it is hoping to continue dominating after the launch of its low-cost Level brand last year. And the FTSE 100 business has big plans for its cut-price airlines back in Europe too.

It announced earlier this month plans to pay €20m for the assets of Austrian airline Niki (which was part of the now-defunct Air Berlin group). This comprises 15 Airbus A320 aircraft and airport slots across Germany, Austria and Spain. It will be swallowed up by IAG’s Vueling brand and will significantly boost IAG’s position in Northern Europe.

On cloud nine

IAG has been chucking out brilliant earnings growth in recent years, the bottom line having swelled at a compound annual growth rate of 45.8% in the four years from and including 2013.

Now profits growth is set to slow from this breakneck pace, or so say City analysts. In 2017, a 5% rise is predicted. But the flying ace is expected to gain steam again from this year onwards (rises of 7% and 9% are forecast for 2018 and 2019 respectively).

IAG isn’t immune to its share of risk due to the the impact of terrorist acts on holidaymaker appetite, not to mention rising competition. But a forward P/E ratio of 7 times is disproportionately cheap in my opinion and could keep the share price surging.

This is not the only reason for investors to pile into the shares today, as the firm’s progressive dividend policy also throws out chunky yields.

The reward of 23.5 euro cents per share forked out in 2016 is predicted to have marched to 26 cents last year, and predictions of further payout expansion — to 29 cents and 31 cents in 2018 and 2019 respectively — result in yields of 3.9% and 4.2% for these years.

A snappy selection

The Vitec Group (LSE: VTC) is another splendid all-rounder I believe investors should check out today.

While the business’s earnings history has been pretty patchy of late (indeed, the 1% fall predicted for 2017 likely carries on this trend), the camera builder is predicted to get rolling again with improvements of 28% and 11% in 2018 and 2019 respectively.

This means that Vitec carries a tantalising prospective P/E ratio of 15.2 times and a sub-1 PEG reading of 0.5. And this is great value given that trading is strong across the business and that new product introductions, improving market conditions, and the likelihood of further M&A all bode well for future revenues growth.

What’s more, these bright earnings forecasts are expected to keep dividends moving northwards too, so 2017’s anticipated 28.6p reward is anticipated to rise to 30p this year and to 31.5p in 2018. Consequently share pickers can enjoy meaty yields of 2.5% for this year and 2.7% for the following period.

The post A FTSE 100 growth stock that could explode in 2018 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.

Forecasters are expecting it to flip from the losses of recent years to earnings of 19.2p per share in the present period. And further progress is expected in 2018, to 22.9p.

But with US shale producers continuing to return to work at a steady pace and question marks over the effectiveness of the OPEC supply accord, I reckon these forecasts are in danger of disappointing. And a forward P/E ratio of 23.9 times is hardly reflective of the high risk of current projections missing the mark.

And looking further down the line, the pace at which green energy is being embraced across the globe threatens BP’s ability to create healthy profits growth in the decades ahead.

With this in mind I am looking at two London-quoted stocks with better profits potential than the fossil fuel giant.

TV star

The Vitec Group (LSE: VTC) produced yet another robust set of financials last week. The company, which produces cameras as well as a broad range of related equipment, announced that revenues jumped 9.6% during January-June to £187.6m. And sales from continuing operations at stable exchange rates advanced 3.1% in the period.

This result powered adjusted pre-tax profit 24.5% higher to £19.3m, or 10.9% at constant currencies.

Vitec is benefitting from the trend of broadcasters moving programming to outside the studio, powering demand for products like its easy-to-move camera tripods and wireless transmitters. And the business has a raft of new gadgets slated for the second half and beyond, which should keep driving turnover across both its Photography and Broadcast divisions.

The number crunchers believe that the future remains rosy for the camera giant, and have pencilled in earnings expansion of 9% and 5% for 2017 and 2018 respectively.

With Vitec subsequently boasting a cheap prospective P/E ratio of 14.9 times, roughly in line with the broadly-considered value benchmark of 15 times, I reckon the company should command serious attention right now.

Looking good

I am also convinced online retail colossus ASOS (LSE: ASC) has what it takes to deliver titanic profits expansion in the years ahead.

Thanks to its huge international footprint, the clothes seller saw group revenues explode 32% during March-June, to £660.1m. While sales in the UK rose by a respectable 16%, despite the vert tough market conditions, revenues detonated 44% in its international markets.

And news that the clothing colossus plans to invest $40m in a new warehouse in Atlanta, Georgia should keep sales in the US alone tearing higher — turnover in the territory (at constant currencies) soared 26% in the four months to June.

The abacus bashers expect ASOS to generate earnings growth of 12% in the 12 months to this August, and to follow this with a 29% advance next year. A subsequent P/E ratio of 78.6 times may appear ‘nosebleed’ territory, but I reckon the prospect of excellent earnings expansion in the coming years still makes the business a hot bet right now.

The post 2 growth stars I’d always buy over BP plc 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 ASOS. The Motley Fool UK has recommended BP. 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.

Investors reading the group’s record first-half results may be wondering what’s gone wrong. The short answer is that nothing is wrong. Indeed, I think the shares could still deserve a buy rating.

Orders up 24%

Just Eat’s revenue rose by 44% to £246.6m during the first half. The number of orders handled by the group climbed 24% to 80.4m. Excluding the effects of acquisitions, like-for-like orders were up by 25% during the first half. It’s clear that customers are still using this service in increasing numbers in the UK and abroad.

Profit margins also remained strong. Pre-tax profit rose by 46% to £49.5m, while earnings per share were 49% higher, at 5.5p. The group’s operating margin was unchanged from last year, at 20%.

I believe further growth is likely, although it may be slightly tougher to achieve.

The biggest gets bigger

Just Eat’s planned acquisition of UK rival Hungry House is taking longer than expected, as it’s the subject of an in-depth Phase 2 investigation by the Competition and Markets Authority.

The group is also trying to make inroads into the branded restaurant market. I’d guess this includes Pizza Hut and Domino’s Pizza Group. Management said today that it will spend extra this year on opportunities including “increased collaboration with branded UK restaurants”. I believe these big businesses will be able to demand tougher terms than the legion of small takeaways Just Eat currently works with, so margins could be lower.

You could still make a million

On a 2017 forecast P/E of 41, Just Eat looks expensive. But the P/E ratio isn’t always the best way to value a growth business, as it doesn’t show how fast earnings are rising.

The PEG ratio — or price/earnings growth ratio — combines earnings growth with valuation. A PEG ratio of less than one is generally considered cheap. Just Eat’s earnings per share are expected to rise by 67% this year. That means the stock’s forecast PEG ratio is just 1.1. That looks fairly affordable to me.

In my view, Just Eat stock is fairly priced at the moment and could have further to climb.

Better late than never

Investors in photography and broadcast equipment firm Vitec Group (LSE: VTC) have had to be patient as the firm’s share price went nowhere between 2011 and 2015. But the last year has seen the stock rise by 85% to more than 1,000p as profits have surged higher.

Some shareholders may be wondering whether to take profits. I wouldn’t. Vitec still looks reasonably priced to me, on 15 times forecast earnings and with an attractive 2.8% yield. Further growth is expected next year, and it’s worth noting that broker forecasts are continuing to climb.

At the start of 2017, the group was expected to generate earnings of 59p per share this year. That figure has now risen to 65.6p per share. Next year’s forecasts have also been increased. If this momentum continues, the shares could easily end up looking cheap at current levels. It might be worth buying more on any dips.

The post Why multi-bagging Just Eat plc could still make you a millionaire appeared first on The Twelfth Magpie.

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Roland Head has no position in any shares mentioned. The Motley Fool UK has recommended Domino's Pizza and Just Eat. 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.

Interserve advised that revenues at its Support Services core division (responsible for about two-thirds of total sales) were “robust and in line with our expectations” during the first four months of the year.

As well, Interserve announced that, at its Equipment Services arm, it was witnessing “good momentum across its international markets,” particularly in the UK, Middle East and Far East.

Still too risky

While Interserve therefore affirmed its expectations for the full year, there are still some big questions surrounding the Reading firm.

At its Construction division (from where 40% of sales are sourced), Interserve advised that trading remains in line with forecasts. But the business noted that its performance in the UK “remains mixed.”

And although it expects performance to pick up the second half of the year as older, less favourable contracts expire, it warned that “workflow may be impacted by the General Election.”

But the main cause of investor concern is the impact of its decision to exit its Energy from Waste (or EfW) division back in November. Its share price collapsed in February after it warned of “a lengthy period of litigation” following its decision to axe its Glasgow Recycling & Renewable Energy project, and after hiking provisions related to the exiting the market and the related contracts to £160m.

So while Interserve advised today that “progress on contracts within our exited [EfW] business is in line with expectations,” the saga still threatens to throw up plenty more headaches looking ahead.

Some would argue that these troubles, as well as the prospect of trading conditions toughening in the months ahead, are more than baked in at current price levels (a predicted 7% earnings fall leaves Interserve dealing on a P/E ratio of just 4.2 times).

I am not convinced however, and reckon the support services and construction specialist could find itself subject to yet more broker downgrades as 2017 progresses.

Camera colossus

The Vitec Group (LSE: VTC), on the other hand, should continue to impress in the near term and beyond.

Vitec announced this week that it had been “performing slightly ahead of our expectations,” with further organic sales and positive currency movements helping to maintain the solid momentum enjoyed last year.

As a result it advised that it was increasing its outlook for 2017. The news sent its share price to a fresh record top around 930p per share. But despite the camera giant’s steady rise, I reckon the stock still offers supreme value for money.

For 2017 a predicted 6% earnings advance leaves Vitec dealing on a P/E ratio of just 14.3 times, below the widely-regarded value benchmark of 15 times. And a dividend yield of 3.1% provides a handsome little bonus.

While investment by the broadcasting sector may have fallen more recently, Vitec is traversing these troubles by staying ahead of its competitors through massive R&D and a stream of product launches. And I am convinced these measures should keep revenues shooting higher.

The post One bargain-basement stock I’d buy and one I’d avoid 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. 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.

Vitec announced in a lively November trading update that “results since the half year end have been slightly ahead of expectations, with trading benefitting from movements in foreign exchange rates.” But the business also lauded improvements at its ‘higher technology’ broadcasting businesses, with the success of the Rio Olympics helping sales here to grow.

Vitec is in great shape to keep punching stunning sales growth as it leads the next wave of broadcasting innovation, helped by a steady stream of acquisitions. Indeed, rising broadcaster investment in areas like remotely-operated cameras and HD/4K-ready field cameras provides plenty of growth opportunities for the video ace.

The City expects Vitec to pay a dividend of 25.4p per share in 2016, up from 24.6p last year, and to hike the payout to an even-juicier 26.1p in 2017. These projections yield a meaty 4% and 4.1% respectively, beating the London blue-chip average of 3.5% by no little distance.

And Vitec’s rejuvenated growth outlook should bolster investor confidence in the possibility of chunky rewards. After enduring two successive earnings dips, the camera colossus is anticipated to see growth of 16% this year and 3% in 2017.

These estimates mean that Vitec’s dividends for this year and next are covered 2.3 times, more than meeting the widely-regarded safety threshold of two times.

Staffing star

But Vitec isn’t the only under-the-radar London stock offering dynamite dividend potential. Indeed, SThree (LSE: STHR) also has plenty of scope to keep throwing out bumper shareholder payouts.

The recruitment play has kept the dividend locked at 14p per share for what now seems an age. And expected near-term earnings pressure — drops of 1% and 8% to November 2016 and 2017 respectively are pencilled-in by City brokers — is anticipated to keep dividends locked around these levels for this period.

Still, investors shouldn’t ignore the 5% dividend yield that these forecasts throw up.

It’s possible that SThree’s next financial results (scheduled for 9 December) could indicate fresh turbulence created by the EU referendum, a phenomenon that — combined with a slowdown in the banking and financial segments — pushed gross profits from the UK and Ireland 9% lower during June-August.

However, Britain isn’t the be-all-and-end-all for SThree, the region being responsible for less than a quarter of total profits. Rather, I reckon the recruiter’s strong presence across North America, Europe and Asia should help it to offset the worst of any Brexit impact and deliver solid long-term returns, particularly as operational improvements in North America continue.

On top of this, SThree’s bias towards the contract rather than permanent segment should enable it to more effectively ride out the fall in business confidence brought about by June’s referendum.

With the business also creating shedloads of cash, I reckon SThree is in decent shape to keep churning out generous dividends in the near term and beyond.

The post 2 ‘hidden’ income shares to turbocharge your wealth 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.

RSA struck 11-month peaks above 500p per share today after reporting that underwriting profit clocked in at record highs of £119m during January-June, up 72% from £73m in the corresponding period last year.

This was despite claims related to weather and other large events coming in £59m worse than planned.

RSA’s huge international presence has calmed investors fearful of deteriorating conditions in the UK — indeed, chief executive Stephen Hester advised that although the impact of June’s referendum “will take time to play out… RSA is well placed, with a majority of earnings in foreign currencies.”

And despite possible headwinds created by low interest rates, the firm’s long-running restructuring plan should also help to keep RSA moving in the right direction, in my opinion.

Given its resilience in difficult and volatile markets, I reckon a forward P/E ratio of 16.1 times is great value.

A pretty picture

Camera maker Vitec Group’s (LSE: VTC) latest update on Thursday also lit up the market, the stock leaping 5% on the day to four-month highs. Vitec announced that revenues grew 9.7% between January and July, to £171.1m, a result that pushed pre-tax profit 6.2% higher to £15.5m.

The firm’s Broadcast division performed well by “investing in product development and launching a number of innovative products and services,” chief executive Stephen Bird noted, while new products and improvements to its distribution channels boosted sales at its Photographic arm.

Vitec is clearly making waves in a rapidly-changing technological marketplace, and I believe the stock is a snip on a forward P/E rating of 9.7 times. And a chunky 4.7% dividend yield seals the investment case, in my opinion.

In poor health

Stocks guru Neil Woodford’s investment vehicle, the Woodford Patient Capital Trust (LSE: WPCT), hasn’t fared well in recent months however. The trust saw net assets clock in at £717.9m as of June, down from £805.3m six months earlier and £814.9m at the same point in 2015.

Woodford Patient Capital chairman Susan Searle noted that “the company experienced a challenging half-year period that reflected both a turbulent market for small-to-medium-sized quoted companies and the uncertainty that surrounded the EU referendum.”

But Neil Woodford commented that “sometimes, the share prices of quoted early-stage businesses will be volatile and they may sell off in small volume for no fundamental reason,” adding that “considerable progress has been made across much of the portfolio.”

In particular, Woodford hailed the “meaningfully positive and noteworthy news” of fund constituents like Prothena, 4D Pharma and Immunocore in underlining the trust’s strong long-term growth prospects.

Turbulence is par for the course when investing in early-stage pharma, and investors often need to exercise a lot of patience. So while the healthcare sector offers plenty of opportunity, I believe risk-averse and/or short-term investors should give Woodford Patient Capital a miss, certainly for the time being.

The post Should you buy these FTSE giants after today’s updates? 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.

From banking giant Barclays and engineer Rolls-Royce through to mining play Rio Tinto, a spate of FTSE 100 stocks have been forced to slash their dividends in light of battered balance sheets and worrisome earnings outlooks.

With this in mind, I’ve scoured the FTSE Small Cap (INDEXFTSE: SMX) for a cluster of alternative stock stars that are a great bet to keep on delivering bumper dividend flows.

Space saver

Bolstered by strong domestic demand for its industrial, retail and office space, I believe A&J Mucklow Group (LSE: MKLW) is in terrific shape to keep its progressive dividend policy chugging higher.

With the City expecting solid earnings growth in the near-term and beyond, Mucklow is anticipated to fork out a chunky 21.5p per share dividend for the year to June 2016, throwing up a 4.7% yield. And a predicted 22.1p reward for 2017 drives the yield to an impressive 4.8%.

Services star

With demand from the insurance segment striding higher, I reckon professional services provider Charles Taylor (LSE: CTR) should also keep growing dividends at a terrific rate. And on top of generating terrific organic growth, the firm’s ambitious acquisition strategy should light a fire under shareholder returns too.

Its progressive dividend policy having been resurrected in 2014, the number crunchers expect Charles Taylor to pay a dividend of 10.4p per share this year, creating a meaty 3.7% yield. And the yield marches to 3.9% for next year thanks to a predicted 10.9p payment.

Keep on trucking!

Logistics play Stobart Group’s (LSE: STOB) decision to diversify away from its traditional haulage business continues to deliver the goods, its Aviation, Rail and Energy divisions reporting further breakneck growth in 2015. And in a further boost for income chasers, the company’s ongoing disposal drive is also creating plenty of cash to keep producing generous payouts.

The transportation play has kept the dividend locked at 6p per share for donkey’s years now, and the City doesn’t expect this to end in the near future. However, income seekers should sit up and take note of a juicy 5.3% yield lasting right through to the 12 months ending February 2018.

Media mammoth

Despite current market difficulties, I reckon camera and lighting specialist Vitec Group’s (LSE: VTC) renewed investment in high-growth segments should help it navigate the worst of these travails and deliver splendid long-term returns.

On top of this, Vitec Group is also bolstering its earnings prospects through a steady stream of product releases. In light of these moves, the calculator bashers expect Vitec’s progressive dividend policy to churn out a 26.3p per share reward in 2016, creating a market-mashing 4.8% yield. And an estimated 26.6p payment nudges the yield to an even-better 4.9%.

The post The 4 ‘secret’ dividend stars you can’t afford to miss! 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?
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Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Barclays and Rio Tinto. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Soaring returns

Supported by steady US economic growth, I believe business jet specialists BBA Aviation (LSE: BBA) should deliver sterling returns in the years ahead.

Investors should be buoyed by the improving momentum of BBA Aviation’s Signature flight support arm, the world’s largest fixed base operation (or FBO) network. The division is responsible for around four-fifths of group profits.

With the $2.07bn acquisition of Landmark Aviation in September also boosting the firm’s long-term earnings outlook, BBA Aviation is predicted to shell out generous dividends of 12.7 US cents and 13.3 cents per share in 2016 and 2017 respectively. These figures yield a chunky 4.4% and 4.7%.

Build a fortune

Despite weakness in its UK construction arm, I reckon the diversified nature of Interserve’s (LSE: IRV) operations should keep dividends chugging higher. The business saw pre-tax profit leap 28% to £79.5m last year as its British Support Services and International Construction arms kept delivering the goods.

And investors should take heart from Interserve’s terrific relationship with blue-chip clients across the globe — the company inked key contracts with London Underground, B&Q, Superdrug and the Dubai Aviation City Corporation last year, for example.

Against this backdrop the City expects Interserve to raise the dividend to 25.3p per share in 2016, yielding a spectacular 5.7%. And the yield moves to 5.9% for next year thanks to a predicted 26.5p reward.

Camera corker

Signs of improvement in the broadcasting space looks set to support chunky dividends at camera and equipment specialists Vitec Group (LSE: VTC) looking ahead.

Industry data suggests that heavy demand declines for lens cameras is starting to moderate, while a string of major events in 2016 — from the Rio Olympic Games and European Football Championships through to the US Presidential election — should deliver solid revenues expansion in the near-term.

And for the coming years, a steady stream of new product launches — combined with Vitec’s massive restructuring drive — should undergird stunning earnings growth.

For 2016 the ‘Square Mile’ expects Vitec to lift the dividend to 26.3p per share, yielding a market-bashing 4.4%. And a projected 26.6p payout for 2017 will keep the yield at a market-smashing level.

Suits you

Tux renter and suit retailer Moss Bros Group (LSE: MOSB) has seen sales explode in recent times, its extensive store refit programme and brand investment paying off handsomely.

Meanwhile, improvements to the company’s online proposition is also promising to deliver plump rewards in this critical growth market. Moss Bros saw total internet sales gallop almost a third higher in the year to early January, making the online division responsible for 10% of group sales.

The City expects Moss Bros to fork out a dividend of 5.7p per share for the period ending January 2017, yielding an eye-watering 5.7%. And a yield of 5.9% is in place for 2018 thanks to predictions of a 5.9p dividend.

The post 4 Hidden Dividend Stars! BBA Aviation plc, Interserve plc, Vitec Group plc & Moss Bros Group plc 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 BBA Aviation. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.