Today I am looking at three FTSE 100 destroyers carrying spectacular dividend prospects.
Direct Line Insurance Group
Diversified insurance giant Direct Line (LSE: DLG) has been a terrific selection for income hunters over the past year. The companys sizeable restructuring has seen it make significant divestments across its international operations, allowing it to reward shareholders with a series of special dividends.
Although the companys main markets remain ultra-competitive, signs that motor insurance premiums are once again on the rise is great news for Direct Lines revenues outlook. And with its streamlining scheme still rolling along nicely total costs fell 6% during January-September and the business latching onto hot growth areas like telematics, I believe the insurance play is in great shape to keep on delivering solid shareholder returns.
Indeed, current forecasts indicate that Direct Line will shell out a payment of 26.1p per share in 2015, resulting in a monster yield of 8.2%.
Persimmon
Housebuilder Persimmon (LSE: PSN) has long been a magnet for those seeking access to reliable, year-on-year earnings growth. Although the market has shown some signs of cooling in recent months, house prices look set to keep ticking higher as homes demand continues to outstrip supply.
Persimmon noted last month that revenues increased 23% in 2014, to 2.6bn, while forward sales of 973m as of the close of the year up 7% from the same point in 2013 provides terrific visibility for this year. As well, the construction specialist has also proved itself to be a dependable cash generator, and saw cash balances leap 85% higher to 378m last year, a promising precursoe for dividend growth.
Consequently City analysts expect Persimmon to hike the full-year dividend once again this year, and a payout of 100.6p is currently on the cards. As a result the firm boasts an eye-watering yield of 6.1%.
Admiral Group
Like Direct Line, car insurance specialist Admiral (LSE: ADM) will have been buoyed by latest AA data released this month which underlined the steady recovery in premiums after years of declines.
Even though the firms British Insurance Premium Index showed average insurance costs fall from around 600 at the end of 2013 to 540 as of the close of last year, prices ticked up 1.4% during the second half of the year. With Admiral also proving a master when it comes to retaining its customers, as well as expanding into foreign marketplaces, I believe the business should continue to offer terrific dividend prospects in coming years.
The effect of current market pressures is expected to drive earnings, and consequently the dividend, lower in 2015, however, and a payment of 89.9p per share is currently pencilled in. But this figure still produces an exceptional 6.2% yield. And payouts are expected to trek higher again from next year as trading conditions improve.
So if you are looking for other income-busting stocks like those mentioned above, I strongly recommend you check out this brand new and exclusive report that singles out a hatful of blue-chip beauties poised to electrify your dividend flows.
Our “5 Dividend Winners To Retire On” wealth report highlights a selection of incredible stocks with an excellent record of providing juicy shareholder returns. Among our picks are top retail, pharmaceutical and utilities plays that we are convinced should continue to provide red-hot dividends. Click here to download the report — it’s 100% free and comes with no further obligation.
Get FREE Issues of The Motley Fool Collective
Get straightforward advice on whats really happening with the stock markets, direct to your inbox. Help yourself with our FREE email newsletter designed to help you protect and grow your portfolio wealth.
By providing your email address, you consent to receiving further information on our goods and services and those of our business partners. To opt-out of receiving this information click here. All information provided is governed by our Privacy Statement.
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.