Looking to load up on big-paying dividend shares in the run-up to Christmas? Well, buying into PayPoint (LSE: PAY) could be one of the best investment decisions you make.
It’s not just that the retail tech giant looks pretty cheap at the moment. For the present fiscal year (to March 2020) it carries a tasty 5% dividend yield as well as a price-to-earnings (P/E) multiple of just 14.4 times. It’s that half-year results are released on Thursday, 28 November, and should PayPoint impress on the trading front I think its share price could soar.
Most interesting (at least in this Fool’s opinion), will be news of whether the firm’s rollout of its game-changing PayPoint One technology continues to roll higher. Latest financials showed that there were 13,633 of these terminals up and running as of June, up 752 in just three months and a result that propelled service fees 30.7% in first fiscal quarter. Strap yourself in!
I’ve long banged the drum on why Britain’s chronic homes shortage makes the homebuilders brilliant dividend buys, and latest data from Rightmove this week has reinforced my bullishness.
Before I get onto this, though, I’d like to stress there’s a multitude of big-yielding builders to play this theme. But Bovis Homes Group (LSE: BVS), with its rock-bottom forward P/E ratio of 10.7 times and bulging 8.9% dividend yield is one of the best value of these shares out there.
So what did Rightmove have to say, then? Well, according to the property website the number of sellers advertising their homes tanked 15% in November, the sharpest drop since August 2009. With intense political and economic uncertainty encouraging more and more existing owners to stay put the demand for newbuild properties from first-time buyers is shooting through the roof.
No wonder Bovis itself punched record interim profits of £72.4m in the six months to June, and with Brexit uncertainty threatening to spill over into 2020 (and possibly longer) it looks like that housing crunch should persist a little longer.
Big value, huge dividends
Investors flirting with the FTSE 250 builder might not be under pressure to buy shares right away. However, I’d argue that those thinking about Highland Gold Mining (LSE: HGM) should act without delay as gold prices could receive a shot in the arm in end-of-year business.
Front and centre are the implications of mid-December’s UK general election, though there’s a range of other macroeconomic and geopolitical factors that could drive precious metal values. A Tory majority raises the chances of a no-deal Brexit at the end of 2020; a hung parliament extends the stalemate of the past three-and-a-half years; and a Labour government raises the prospect of mass nationalisations and a sell-off in UK share markets.
Forward dividend yields at Highland aren’t as impressive as those of Bovis or PayPoint but still sits at a chunky 4.1%. On top of this, the mining play also carries a mega-low corresponding P/E ratio of 9.2 times, a reading which gives plenty of room for the share price to rise should bullion prices indeed barge higher.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of PayPoint. 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.
Motley Fool UK 2019