25 Jan 2 growth and dividend stocks that could make you rich
While investors haven’t been piling into Countryside Properties (LSE: CSP) following the release of latest trading details — the share was last 1% lower in Thursday business — today’s release again highlighted the extremely-favourable trading environment for the construction play.
Countryside advised that the number of completions during the 13 weeks to December 31 jumped 47% year-on-year to 852 units. The company also reported a chunky forward order book of £242.9m, although admittedly this was down from a colossal £292.9m a year earlier.
Private average selling prices dropped 11% in the period, to £394,000, although this reflected the FTSE 250 firm’s decision to focus more on affordable housing.
Celebrating the results chief executive Ian Sutcliffe said: “We have had a strong start to the year. We entered [fiscal 2018] with a record forward order book which, combined with our mixed tenure model, has enabled us to deliver sector-leading growth in completions and improved cash conversion.”
Countryside remains on track to meet full-year forecasts, it said, also advising: “Current trading remains robust, with the net reservation rate tracking in line with expectations and an underlying sales price increase of 3%. Our mixed tenure delivery and an increase in the number of active sites, up 22% to 96, continue to underpin our sector-leading growth.”
Countryside noted too that it is witnessing strongest demand in price points below £600,000, a segment which represents more than nine-tenths of its private sales.
Reflecting the housebuilder’s strong progress in a favourable marketplace, City analysts are expecting earnings to continue swelling at an impressive pace. During the 12 months to September 2018 a 24% bottom-line rise is forecast, a figure that also leaves Countryside dealing on a bargain basement forward P/E ratio of 9.6 times.
What’s more, current forecasts point to an additional 16% profits improvement in fiscal 2019, news that should be music to the ears of growth and dividend chasers.
You see, shareholder payouts are expected to continue their relentless northwards march during this period as well. Last year’s 8.4p per share reward is anticipated to rise to 10.8p in the current period, and again to 13.3p next year. Consequently yields rock in at 3.3% and 4% for this year and next.
Another growth and income star
Those seeking splendid all-rounders should also pay Tyman (LSE: TYMN) close attention, in my opinion.
The door and window component builder is expected to have kept its long-running growth story in business with a 5% earnings advance in 2017. It is forecast to follow this up with rises of 8% in both 2018 and 2019, projections that leave Tyman dealing on a prospective P/E ratio of just 13.1 times.
And these forecasts lead into predictions of more healthy dividend expansion, meaning that a projected 11.5p per share payment for last year moves to 12.4p and 13.3p for 2018 and 2019 respectively. As a result, yields stand at an inflation-beating 3.3% and 3.5% for this year and next.
Tyman spooked investors in November after advising that profit forecasts for the full fiscal year were likely to fall below expectations because of higher input costs and operational troubles at its AmesburyTruth unit.
But investors have piled back in since then, not a surprise to me given the strong outlook for its core North American markets and the brilliant long-term revenues opportunities created by recent acquisitions.
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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.