LONDON -- They say that "all boats float on a rising tide." While that may be true of ships, shares are different. These shares have massively outperformed the rest of the market in the last 12 months.
Rolls-Royce
Shares in jet engine specialist Rolls-Royce (LSE: RR ) are up 40.2% in the last year. That is well ahead of the FTSE 100, which has managed an increase of "just" 16.3% in the same period.
Rolls-Royce made certain to send shareholders its love when announcing full years results on February 14. Positive news abounded, with revenues, profits and dividends all up significantly.
Since then, Rolls-Royce has announced a contract to supply and service engines for British Airways' new Airbus planes. Today, the company announced a contract to supply a customer with engines for the Boeing Dreamliner.
Analysts are forecasting EPS (earnings per share) of 67 pence for 2013, with a dividend of 21.8 pence. That equates to a P/E of 17.4 and a yield of 1.9% at today's prices.
WPP
Advertising specialist WPP (LSE: WPP ) held its 2010 dividend at 15.47 pence. In every other year since 1997, the payout has increased.
EPS increases average 11.6% at WPP over the last five years. Dividend growth in that time averages out at 16.2% a year. Twelve other FTSE 100 companies have a better recent record on both measures but only three of those are forecast to report higher EPS growth than WPP this year.
That growth is expected to come in at 15.8%, to be followed by another 9.7% rise in 2014. That puts the shares today on a 2014 P/E of 12.5, with a forecast yield of 3.3%.
Capita
Outsourcing specialist Capita (LSE: CPI ) is one of the FTSE 100's most successful companies. Ten years ago, annual turnover at the company was 900 million pounds. Earnings per share was 10.5 pence. Fast-forward to 2012 and sales had reached 3.3 billion pounds per annum and EPS hit 37 pence. In that time, the dividend increased year on year from 2.1 pence to 23.5 pence.
Unsurprisingly, this super-successful share has spent the last year outperforming its blue-chip peers. In the last 12 months, shares in Capita are up 49.2%.
Significant dividend and earnings growth is expected this year and next. As a result, Capita shares trade on a prospective P/E for 2014 of 15.5, by which time the dividend is expected to represent a 2.9% yield.
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