Why I believe this 6% yielder could make you a fortune

Record(LSE: REC) found itself trekking higher in Friday business following the release of bubbly third-quarter trading details.

The stock was trading 3% higher after news that assets under management equivalents (or AUME) swelled 4.4% during the final quarter of 2017, to stand at $63.9bn as of the close of December.

Record saw net client AUME flows boost the total by $1.4bn during October-December, while positive movements in financial markets bolstered aggregate AUME by a further $1.4bn. A $900m reverse attributed to adverse foreign exchange movements was not enough to take the shine off the results.

Celebrating the solid quarter four performance chief executive James Wood-Collins said: "This quarter saw further growth in AUME and in client numbers, with growth in particular from existing client mandates as well as new business." The asset manager had 60 clients on its books at the close of the year versus 59 three months earlier.

And the Record head painted a positive picture looking ahead, commenting: "Volatility in currency markets linked to political and economic uncertainty continues to create opportunities for engagement with existing and potential clients on risk management, return-seeking and combined strategies."

6% yields? Yes please

City analysts agree that there remain plenty of opportunities for Record to exploit looking ahead, and they have pencilled in earnings expansion of 7% and 6% in the years to March 2018 and 2019 respectively.

These forecasts leave the business dealing on a forward P/E ratio of 13.9 times too, great value under most circumstances but particularly so given Record's exceptional momentum.

However, great profits growth is not the only thing that shareholders can look forward to as Record offers up market-mashing dividend yields too. This year a predicted 2.7p per share reward yields a large 6.3%. And the dial moves to 6.7% for next year thanks to an anticipated 2.9p dividend.

Build a fortune

Retirement property builder McCarthy & Stone (LSE: MCS) offers plenty for share pickers to sink their teeth into as well.

Possible changes to leasehold legislation in the UK to address the ground rent scandal is casting a cloud over the business right now. Having said that however, the City does not expect this to issue to stop earnings from galloping into the distance -- far from it, in fact. Bottom-line rises of 16% and 23% are currently being forecast for the years to August 2018 and 2019.

Such predictions of rampant profits growth feed through to expectations of sprightly dividend growth as well. An anticipated reward of 5.5p for fiscal 2018 yields 3.8%, and a projected 6.4p dividend for the next period yields 4.4%.

What's more, investors can put their faith in these estimates becoming reality, McCarthy & Stone's dividend coverage standing at a bulky 2.9 times and 3.1 times for this year and next.

The Bournemouth business reported back in the autumn that forward sales were up 11% year-on-year as of November 10, at £277m, underlining the brilliant earnings possibilities afforded by the country's ageing population. I reckon a forward P/E ratio of 9.1 times represents unmissable value, particularly as McCarthy & Stone is taking steps to supercharge build rates to capitalise on this positive structural backcloth.

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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.

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