Today I’m revealing a cluster of Footsie giants set to deliver exceptional dividends this year and beyond.
Retail star
Shares in Marks and Spencer (LSE: MKS) slipped to fresh four-year lows this month, the firm’s inability to turn around its Womenswear division prompting investors to head to the exits yet again.
Marks and Sparks has plenty of work in front of it to get sales rising again, but I believe the retailer’s revamped online portal will prove pivotal in helping it to shift its clothing in the coming years. On top of this, its premium food products should keep taking off as the company expands its store network.
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With its international presence also poised to boost long-term growth, Marks and Spencer is expected to lift the dividend from 18.7p per share last year to 21.6p and 22p for the years to March 2017 and 2018, respectively.
These projections create bumper yields of 6.5% and 6.6%.
Money master
Unlike M&S, payment specialist Paypoint (LSE: PAY) has seen its share price hit highs not seen since December just this week.
Investors are excited by the potential of its retail services business, with revenues here galloping 17.8% during the 12 months to March, to £140m. This stellar performance has been helped by Paypoint’s site expansion scheme — the company raised the number of outlets across the UK and Romania to 39,000 as of March, a rise of 2,000 from just a year earlier.
These measures are expected to keep Paypoint’s proud growth story rolling, a promising omen for dividends. Indeed, rewards of 60.3p and 62.5p are chalked in for 2017 and 2018, figures that yield a chunky 6.4% and 6.7%, respectively.
Comms corker
Fears concerning the impact of a potential ‘leave’ vote on business investment at this week’s EU referendum pushed marketing services provider Communisis (LSE: CMS) firmly to the downside in recent weeks.
And I reckon subsequently meaty dividend yields makes the business a great pick at the present time. Communisis is anticipated to hike the dividend to 2.4p per share in 2016 and 2.5p next year, up from 2.2p in 2015.
These projections create market-bashing yields of 7.1% and 7.7%.
And I expect payouts to keep on rising along with earnings. Communisis boasts a broad portfolio of blue chip clients, and steady international expansion should keep the contract wins ticking higher — the marketing play currently boasts some 28 international clients.
Manage monster returns
Concerns over emerging market cooling have weighed heavily on Aberdeen Asset Management (LSE: ADN) in recent times.
The firm saw assets under management sink to £292.8bn as of March from £330.6bn a year earlier, it advised last month. And Aberdeen Asset Management warned that “we remain vulnerable to further outflows over the next few quarters.”
These pressures are expected to put paid to the company’s progressive dividend policy, with a projected payout of 19.5p per share for 2016 matching last year’s reward. But this forecast still yields a spectacular 6.9%.
And with earnings expected to bounce back from next year, Aberdeen Asset Management is predicted to raise the dividend to 19.7p in 2017, driving the yield to 7%.
