esyrhzek

A top dividend growth share I’d buy for January and hold until 2030

first_img Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of SSP Group. 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. I reckon the release of first-quarter financials from SSP Group (LSE: SSPG) on Tuesday, 21 January, provides a great buying opportunity for both growth and dividend investors right now.The FTSE 250 retailer, which operates catering outlets in hundreds of airports and train stations the world over, certainly impressed last time it updated the market in November. It reported that revenues rose 9% in the 12 months to September 2019, to £2.8bn, with like-for-like sales rising by a solid 1.9% thanks to growing passenger numbers in the air and on land.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Strong sales helped underlying profit before tax leap 10.2% to £203.2m, and in further news SSP said that trading in the new financial year had been “in line with expectations.” I’m expecting an even more upbeat release when those aforementioned financials come out, too, one that could send its share price hurtling northwards.Spreading outWhy am I so confident? Well SSP has turbocharged expansion to keep up with the steady rise in passenger numbers and to latch onto great opportunities in individual markets, too. Last year it opened a flurry of new units in major US airports like LaGuardia, Seattle and LAX; more outlets in air bases, train stations and motorway service areas across Europe; and expanded in airports in hot emerging regions like India.And investors have more to look forward to in the near-term and beyond. Last year saw it enter another top growth market in Brazil, and the upcoming launches in Bahrain, Bermuda and Malaysia will see it eventually operate in almost 40 countries. Meanwhile, SSP won a large number of new contracts in some important markets across North America, mainland Europe, and in the UK as well.I’m not just encouraged by SSP’s sunny revenues outlook as traveller numbers rise across the world and expansion plans continue, though. I also like the progress that the firm is making on improving margins and especially so in a time when cost inflation is becoming more problematic. The retail play saw underlying operating margin 30 basis points higher in financial 2019, to 7.9%.A top dividend growerWith earnings having swelled by double-digit percentages during the past four fiscal years, SSP has consequently proved a hit with dividend chasers. Shareholder rewards have more than doubled in that time, culminating in the 11.6 per share reward of the financial 2019.And City analysts expect another meaty rise in fiscal 2020, to 12.5p per share, supported by an expected 6% profits rise.A 1.8% forward yield clearly isn’t much to get excited about, though the prospect of strong and sustained payout growth in the coming years still makes the retailer a top income buy today. SSP certainly has the sort of formidable cash generation to support additional, and excellent, growth – strength which saw it launch a £100m share buyback programme in the autumn.On the negative side SSP is toppy on paper, dealing on a forward price-to-earnings (P/E) ratio of 21.8 times. But this wouldn’t discourage me from buying given its exiting growth plans and great record of recent annual profits expansion. I think it’s a top buy today. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” A top dividend growth share I’d buy for January and hold until 2030 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address Royston Wild | Sunday, 12th January, 2020 | More on: SSPG See all posts by Royston Wildlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *