ISA investors! I’d buy this income growth stock in January in the hope of BIG dividends

first_imgISA investors! I’d buy this income growth stock in January in the hope of BIG dividends Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address See all posts by Royston Wild Royston Wild | Thursday, 9th January, 2020 | More on: GAW Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Sharescenter_img “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. I believe the release of half-year results next Tuesday (14 January) could send Games Workshop Group (LSE: GAW) even further northwards. The fantasy board game specialist’s share price more than doubled in 2019 as market makers, impressed by its resilience in otherwise tough conditions for the UK retail sector, piled in with gusto.The wares over at Games Workshop are just about as niche as it gets, and its decades-old history of designing, manufacturing and selling its Warhammer war games has commanded an army of loyal followers that continue to splurge out, despite the broader pressure on consumer confidence on these shores.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, it’s the company’s impressive capacity to grab the imagination with new fans in foreign territories which is really standing out right now. Overseas sales now account for three-quarters of group turnover and it’s revving up investment in North America and Asia in particular to keep the tills ringing out. The business opened 19 and eight net new stores in the last fiscal year (to June 2019) in these regions respectively to take the total stores on each continent to 153 and 23.Premium playGames Workshop advised last time out on 8 November that both revenues and profits in the fiscal year to date were up from the same 2018 period, the business noting in particular that receivable royalties were “significantly ahead” as a result of “the timing of guarantee income on signing new licences.”The news sent the retailer’s shares soaring 19% in just one day and set the tone for a strong start to the end of the year. As I type, Games Workshop trades at record highs of £63.70 per share, and signs that the business has got the second half off to a flyer — a very-likely scenario, it has to be said – should help it to gain more ground.It doesn’t matter that the business already trades at a healthy premium, a forward price-to-earnings (P/E) ratio of 28.1 times. This is a reflection of the FTSE 250 firm’s long record of strong earnings growth which City analysts expect to continue. Current forecasts suggest a 12% improvement in the profits column for the fiscal year ending May 2020. The market loves the resilience that its unique products bring to the top line and that’s why it’s long commanded a high rating.Dividends forecasts to jump?But Games Workshop isn’t just a great pick for growth investors. I’ve long lauded the company on account of the sprightly pace at which it’s hiked annual dividends over the past half a decade. It raised the full-year dividend 23% last time out to 155p per share, and the signs are looking good for a meaty hike in the half-time payout this time around.As well as benefitting from solid trading, the company continues to benefit from balance sheet robustness, Games Workshop confirming in September that “cash generation also remains strong.”  City analysts reckon a 159p per share dividend will be paid out for the full fiscal year to May, resulting in a handy 2.5% yield. Though I reckon they could well end up revising their estimates to the upside following next week’s interims, giving the share price an extra shunt in the right direction. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img read more