Which of these growth-and-income shares is better?
Shares in doors-and-windows giant Tyman (LSE: TYMN) achieved lift-off during midweek business, the stock last seen 9% higher from Tuesday's close, following spectacular full-year financials.
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Tyman announced that group revenues jumped 29% during 2016, to £457.6m, a result that propelled pre-tax profit 89% higher to £29.4m. The company lauded acquisitions like Giesse and Bilco in helping to drive the top line, as well as favourable currency movements.
And Tyman's outlook for 2017 remains largely upbeat, the firm predicting that "US residential and commercial markets will be stronger this year than they were in 2016."
The business added that "we expect to see a continuation of the gradual recovery in European markets," although it cautioned that "UK markets are likely to remain variable given lower levels of housing transactions and probable declines in real incomes."
Some near-term weakness was expected at Tyman prior to today's release, a 2% earnings fall predicted for 2017. The firm was anticipated to snap back with a 9% rise in 2018.
Still, these numbers result in very-decent P/E ratios of 12.3 times and 11.3 times, way below the benchmark of 15 times that's broadly considered to indicate attractive value.
On top of this, Tyman is also a great pick for income investors, in my opinion. The company was already anticipated to raise a dividend of 10.5p last year to 10.6p per share in 2017, resulting in a handy 3.5% dividend yield. And this leaps to 3.8% for 2018 thanks to an expected 11.6p reward.
And on the back of today's sterling trading statement, I reckon current growth and dividend forecasts could receive significant upgrades in the days ahead.
Still smoking
Like Tyman, I also believe Imperial Brands (LSE: IMB) is a great pick for those seeking excellent earnings and dividend growth in the years ahead.
The number crunchers expect earnings at Imperial Brands to sail 8% higher in the year to September 2017, with an additional 5% rise in the following period. These numbers result in bumper P/E ratios of 14.1 times for this year and 13.4 times for next year.
And the tobacco titan's reputation as a go-to dividend stock is also expected to remain untainted, the City suggests. Imperial Tobacco is anticipated to lift a reward of 155.2p per share in fiscal 2016 to 173.5p in the current period, and to 188.2p in the following year.
Imperial Brands' top-level labels like JPS and Lucky Strike have long proved dependable sales generators, and this quality is now more important than ever as global cigarette demand steadily sinks. The market share of these so-called Growth Brands rose 50 basis points in 2016, helping tobacco net revenues at Imperial Brands leap 14.7% last year to £7.1bn.
And the cigarette giant is also investing huge sums into new product ranges like its Reon caffeine strips and blu vapour brand to insure against falling sales of its traditional goods and deliver spectacular long-term growth.
I reckon Imperial Brands, like Tyman, is in great shape to deliver exceptional returns long into the future.
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Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Imperial Brands. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
