The income investing prospects of easyJet plc (LON:EZJ) (EZJ.L), AstraZeneca plc (LON:AZN) (AZN.L), Barclays PLC (LON:BARC) (BARC.L) and Standard Life Aberdeen PLC (LON:SLA) (SLA.L) are the focus of this article. Can they grow dividends over the next few years?
easyJet’s investment prospects may seem to be challenging at the moment. Rising fuel costs and a high level of competition could hold back its financial performance in the near term.
However, with the company having a large net cash position and a strong brand, it could perform well in the coming years relative to its peers. Since easyJet has a forward dividend yield of around 4.5%, the company could be an improving income share in my view.
Barclays is also due to yield over 4% next year. The stock is expected to generate excess capital in the next few years after a period of restructuring.
Sure, the bank may not be a popular share over the near term. Its P/E ratio of around 10 suggests that it is unloved relative to the FTSE 100. But with what I feel is an improving strategy, Barclays could deliver impressive total returns in my opinion.
AstraZeneca’s dividend growth prospects seem to be improving. The company’s investment in its pipeline means that it is forecast to post a rise in EPS in the next financial year. This could help to revitalise its dividend payments after a number of years of flat dividend payments.
With AstraZeneca also offering a relatively defensive business model to my mind, I think that the company could perform well in a variety of market conditions. With a PEG ratio of around 1.7, it seems to offer good value for money.
Standard Life Aberdeen’s investment potential seems to be relatively impressive in my view. A 7%+ dividend yield and a restructuring could mean that its financial returns improve over the coming years.
Although it has faced a difficult period after the merger, with the loss of a key customer, I believe that its long-term prospects are bright. Therefore, I think that Standard Life Aberdeen could outperform the FTSE 100 over the long run.