BT Group plc (ADR) (NYSE:BT)’s fiber-to-the-cabinet offering “Infinity” is enjoying fast growth. The company is also making strides in becoming a provider of paid-for sports television.
While there is no signficant earnings growth in analyst forecasts, the City is expecting big dividend increases this year and the next. This puts the shares on a forecast yield for 2014 of 3.7%.
If BT Group plc (ADR) (NYSE:BT) can return to growth, its share price revival could be just starting.
SABMiller plc (LON:SAB)
Superbrewer SABMiller plc (LON:SAB) has been making new all-time highs every couple of months for the last three years. However, there are now signs that the valuation is beginning to look stretched.
SABMiller plc (LON:SAB) shares are currently priced at 25.8 times last year’s EPS and 22.5 times forecasts for 2013. That puts the shares among the 10 most expensive in the entire FTSE 100. However, one-third of the FTSE 100’s constituents are forecast to deliver better earnings growth this year.
In the last five years, shareholder dividends at SABMiller plc (LON:SAB) have been increased at an average rate of 12.7% per year. Unfortunately for income investors, the share-price growth means that SABMiller plc (LON:SAB) is expected to yield just 1.9% this year. That’s a long way below the average yield on a FTSE stock.
Compass Group plc (LON:CPG)
Catering and facilities management firm Compass Group plc (LON:CPG) is probably one of the least talked-about FTSE 100 shares. That’s likely because it has no real public face: Most of its sales are made to large corporations and government departments. Compass Group plc (LON:CPG) is also oneU.K. blue chip that makes its biggest sales outside the U.K.: North America is 44.5% of revenues vs. 39.3% for Europe and Japan.
With its last results, Compass Group plc (LON:CPG) announced a 17.9% increase in EPS, accompanied by a 10.4% dividend rise. In the last five years, EPS growth at Compass Group plc (LON:CPG) has averaged 22.1%. In that time, dividend increases have averaged 15.6% per year.
The long-term and non-discretionary nature of much of Compass’ work means that investors have a high visibility of future earnings. The market rewards this with a premium rating: Compass shares trade on 18.3 times consensus EPS forecasts for 2013.
The article 5 Shares Trading Near 52-Week Highs originally appeared on Fool.com.
David O’Hara owns shares in Vodafone but none of the other companies mentioned. He has bet that the price of shares in British American Tobacco will fall. The Motley Fool has recommended shares in Vodafone.
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