Shares Poised To Deliver Market-Busting Yields Beyond 2015

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Of course, a backcloth of intensifying competition continues to raise questions over Royal Mail’s (LSE: RMG) profits outlook, as evidenced by rival City Link’s collapse last month. Still, in my opinion the effect of surging e-commerce on parcel volumes at the company — both at home and abroad — combined with the fruits of further significant restructuring, makes the business a terrific dividend selection.

Against a backdrop of resplendent earnings growth — expansion to the tune of 21% is pencilled in for the year concluding March 2015 — the number crunchers expect Royal Mail to hike the dividend an eye-watering 60%, to 21.2p per share. Consequently the business offers up a stonking yield of 5%.

But the good news does not end here, and expectations of further earnings expansion in 2016 and 2017 is anticipated to push the payout to 21.8p and 22.4p respectively. Consequently, the yield rises to a juicy 5.2% for next year and 5.3% for 2017.