Today I am looking at three firms poised to deliver spectacular dividend returns in 2015.
Mobile telecoms giant Vodafone (LSE: VOD) (NASDAQ: VOD.US) has long been a magnet for those seeking reliable annual dividend growth, a trend thatthe Citys analysts do not expect to come to a halt any time soon.
Even though the firms beleaguered European divisions are expected to weigh on earnings again this year a 64% earnings decline is currently pencilled in for the year concluding March 2015 the companys ability to generate vast sums of cash is anticipated to keep its progressive dividend policy well on track.
Indeed, Vodafone is expected to lift the full-year dividend 3% this year to 11.3p per share. in turn creating a vast 5% yield. And predictions of a further 3% hike during the following 12 months, to 11.6p, pushes the yield to 5.1%. By comparison the FTSE 100 carries a forward average of just 3.3%.
With the firm engaged in a $19bn organic investment plan to boost its services in established and developing regions alike, as well as an aggressive acquisition policy in hot growth sectors, I believe that dividends should continue rolling higher.
British courier Royal Mail (LSE: RMG), although witnessing a slowdown in domestic parcels activity more recently owing to delivery changes at Amazon, remains in pole position to enjoy the fruits of surging e-commerce in coming years.
And against a backcloth of strong projected earnings growth the bottom line is expected to swell 21% during the 12 months to March 2015 Postman Pat and co are anticipated to shell out a full-year dividend of 20.7p per share, up 55% from last years levels.
And the good news does not stop there, with a further 5% hike to 21.7p forecast for fiscal 2016, underpinned by further 12% earnings uptick. As a result Royal Mail currently sports yields of 4.8% for 2015 and 5% for 2016.
With the firms GLS division on the continent also performing well, and cost stripping across the group running at a rate of knots, I expect payouts to continue spiralling skywards.
Electricity provider SSE (LSE: SSE), like its colleagues across the utilities space, remains under pressure from regulators who are putting the profitability of these companies under the microscope. As a result the business has been forced to shelve tariff hikes as the knives are sharpened from lawmakers, consumer groups and the media alike.
But even though top-line pressures are expected to result in a marginal earnings dip this year, SSE is anticipated to lift the total dividend 3% in the year finishing March 2015 to 89.5p per share, boosted by its strong cash flows. As a consequence the power play boasts one of the best blue-chip yields around, at a gargantuan 5.6%.
And even though further earnings woes are anticipated in the following 12 months, an additional 3% payout hike to 92.3p is estimated, pushing the yield to an eye-watering 5.8%.
Although the possibility of stringent regulatory action could continue to hamper profits growth in coming years, SSE looks likely to remain a solid dividend selection in the medium term.
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