I convinced Britain’s resilient hoarding culture should keep dividends at Big Yellow Group (LSE: BYG) spiralling higher well into the future.
Despite uncertainty surrounding the EU referendum, Big Yellow continues to see demand for its lock-ups tick higher and the business reported a 7% bump in like-for-like revenues during April-September, at £53.8m.
And the firm is bolstering its site portfolio through new constructions and smart acquisitions to keep the top line swelling — indeed, Big Yellow splashed out £21m for four Lock and Leave facilities in the South East in April.
The City expects earnings to keep charging despite the possibility of difficult trading conditions, with growth of 11% and 9% expected for the 12 months to March 2017 and 2018 respectively.
And this is expected to propel the dividend from 24.9p per share in fiscal 2016 to 27.7p in the current period, and 30.4p next year. These projections yield a smashing 4.3% and 4.7%.
Walk on air
The outlook for Britain’s listed flyers has become much more turbulent in recent times, with the prospect of higher fuel prices following this week’s OPEC deal adding to fears of moderating traveller demand as Brexit bites.
While these concerns are certainly valid, I reckon International Consolidated Airlines Group (LSE: IAG) has what it takes to overcome current troubles and deliver knockout long-term returns.
The number crunchers share my positive outlook, and IAG is anticipated to pay a dividend of 22 euro cents per share in 2016, supported by a predicted 13% bottom-line rise. This yields a delicious 4.4%. But the good news doesn’t end here — despite a predicted 3% earnings slide next year, the flyer is anticipated to pay a 22.1 cent reward, yielding a juicy 4.5%.
Passenger traffic statistics are certainly not falling off a cliff, and IAG carried 7.2m passengers in November, up 5.2% from the same month in 2015. And the British Airways operator saw premium traffic climb 4.4% year-on-year.
And I expect a robust transatlantic market, allied with IAG’s presence in the cut-price European market through its Vueling and Aer Lingus planes, to keep ticket sales rising.
Splendid signals
With mobile demand shooting higher across the globe, and the costs of its Project Spring capital expenditure programme consigned to history, I expect Vodafone Group (LSE: VOD) to keep on forking out market-mashing dividends.
Vodafone saw organic service revenues continue to gather pace during July-September, up 2.4% from the corresponding 2016 period as demand from ‘new’ territories exploded — sales to Asia, the Middle East and Africa region leapt 7.1% in the quarter. And rising wealth levels in these places should keep demand for Vodafone’s services shooting skywards.
In the meantime, a predicted 18% earnings rise in the year to March 2017 is predicted to create a 12.5p per share dividend, yielding 6.5%. The dividend is expected to step back fractionally in fiscal 2018, to 12.3p per share however, despite an estimated 23% earnings surge.
Still, this figure yields a meaty 6.4%. And I expect Vodafone’s exceptional revenues outlook to power dividends higher again thereafter.