When capital gains are mixed with juicy dividend yields, the rewards for share market investors are second to none. But that mix is exactly what some of these S&P/ASX 200 Index (INDEXASX: XJO) stocks could be offering right now.
- Santos Ltd (ASX: STO) is an oil and gas producer which is targeting 80 to 90 million barrels of oil equivalent production by 2020. It has a huge reserve base and once it gets both the GLNG and PNG LNG projects online, management expects cash flows to double. Dividends are also likely to grow strongly until 2016.
- G8 Education Ltd (ASX: GEM) is a childcare centre owner and operator currently executing a successful acquisitive growth strategy. Analysts are expecting earnings and dividends per share to grow rapidly in the coming years. It currently trades on a trailing dividend yield of 2.2% fully franked.
- Slater & Gordon Limited (ASX: SGH) is up a huge 19% in the past fortnight as the market digests its latest full-year report. As our biggest personal injury law firm, Slater & Gordon is currently pushing into the larger UK market and exploring other opportunities locally. It too pays a handy dividend.
- Collins Foods Ltd (ASX: CKF) is small-cap company which owns and operates KFC, Sizzler and Snag Stand restaurants throughout Australia and Asia. Although the Sizzler chain has weighed on earnings in the domestic market, it is rebranding stores and experiencing modest growth in Asia. This coupled with ongoing acquisitions in the KFC portfolio makes the outlook positive for shareholders over the coming years. It is forecast to pay a 4.8% fully franked dividend in the next 12 months.
- Lastly, Northern Star Resources Ltd (ASX: NST) was one of three stocks to buy originally identified by our top analyst here. Since then, Northern Star's share price is up over 100% because of its ability to use its exceptional balance sheet and cash flows to acquire other promising gold projects throughout Western Australia. All these acquisitions were completed during the worst gold price drop in over 30 years. It is one of a small list of gold miners which pay a consistent dividend. In coming years, production will increase drastically and analysts expect earnings and dividends per share to more than triple!
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