Why I’m optimistic about these 4 income shares: easyJet, BP, GlaxoSmithKline and Persimmon

These 4 dividend shares could perform well in my opinion: easyJet plc (LON:EZJ) (EZJ.L), BP plc (LON:BP) (BP.L), GlaxoSmithKline plc (LON:GSK) (GSK.L) and Persimmon plc (LON:PSN) (PSN.L)

easyJet plc
easyJet plc

easyJet plc (LON:EZJ) (EZJ.L) has experienced a difficult period of late. Lower fuel prices have meant competition has increased in the European airline sector. At the same time, demand for its services has been disappointing due to fears surrounding terrorism. In the long run, I feel both factors are likely to change and the company’s dividend yield of 4.8% may prove to be sustainable and appealing over the long run.

BP (LON:BP) (BP.L) has also faced challenges of late. The price of oil has not risen as much as many investors perhaps expected, and this has caused the BP share price to come under some pressure. This has pushed its dividend yield close to 7%, which I think makes it relatively appealing. The company is now moving on from the oil spill of 2010 and with more capital potentially available for growth investment, BP’s dividend prospects could be relatively bright.

GlaxoSmithKline plc (LON:GSK) (GSK.L) remains one of my favourite dividend shares. I think its mix of pharma, vaccine and consumer goods business means it offers diversity and resilience, as well as growth potential. Although dividends have been held steady of late, the company’s shares still yield around 5.1%. This makes GlaxoSmithKline one of the highest yielding large-cap shares I can find at the moment.

The housebuilding sector is an industry I’m bullish on. I think the mix of low supply and high demand could keep profitability growth sustainable for housebuilders such as Persimmon plc (LON:PSN) (PSN.L). The company has made progress in improving its balance sheet strength in recent years and I feel this could lead to more robust and dependable financial performance in future. With the sector trading on low valuations, I think Persimmon could be a good value play and its share price could perform relatively well in future.

About Robert Stephens 3883 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email [email protected] or use one of the other contact methods available on the 'Contact Us' page