2 bargain dividend stocks I'd buy with £2,000 today

Boosted by the evergreen popularity of the Harry Potter franchise, I am convinced Bloomsbury Publishing(LSE: BMY) should remain a fruitful income pick for many years to come.

It's amazing to think that the marvellous magician first hit the bookshelves more than 20 years ago. Yet the public still can't get enough of Hogwarts and the magnificent world J.K. Rowling created back in the 1990s. And the publishing house continues to roll out special editions to capitalise on popular demand.

Harry Potter truly is the gift that keeps on giving, and particularly to dividend chasers who have seen payments rip steadily higher on the back of jumping cash flows. The company saw net cash leap 85% year-on-year to stand at £16.9m as of the close of August.

And so City analysts are, unsurprisingly, expecting dividends to continue rising for some time yet. In the year to February 2018, a 7p per share reward is anticipated, up from the 6.7p payment of fiscal 2017. Further progression, to 7.4p, is tipped for next year too.

As a consequence, Bloomsbury boasts chunky yields of 4.1% this year and 4.4% for the following period.

Too cheap

Earnings are expected to grow slowly at Bloomsbury in the medium term at least, rises of 1% and 3% predicted for fiscal 2018 and 2019.

However, earnings are in line to explode from the start of the next decade as Bloomsbury's drive into the digital arena of academic and professional publishing pays off. Indeed, revenues from this particular segment now account for almost a quarter of sales across the company's entire Non-Consumer division.

There's a lot to like over at the publishing powerhouse, but this is not reflected in its low forward P/E multiple of 12.7 times. I reckon Bloomsbury is a beautiful bargain to pick up today.

Stateside star

Those hunting down bargain income shares also need to take a close look at Cineworld Group (LSE: CINE) right now.

Investors have reacted with some indifference to the company's entry into North America, the acquisition of US screen operator Regal Entertainment closing late last month. But as I noted previously, the takeover provides Cineworld with brilliant exposure to the world's biggest movie market, while the move will also boost the FTSE 250 firm's already-impressive cash generation.

Of course, this bodes well for income chasers for years ahead. And in the meantime, handy dividend growth to 10.4p per share is predicted for 2018, up from the projected 10.2p payment forecast for last year. The dividend is expected to rise again, to 12p, in 2019. Investors can subsequently bask in beautiful yields of 4.4% and 5.1% for this year and next.

To the delight of value hunters, the number crunchers are expecting earnings at Cineworld to step 6% higher this year and 15% in 2019 too, figures that result in a dirt-cheap forward P/E ratio of 11.9 times. This is far too cheap in my opinion given the brilliant profits possibilities afforded by the company's expansion across the UK, Europe and now across the Atlantic Ocean.

Fancy retiring with £1m or more? Read on

Cineworld's mammoth yields provide brilliant reasons for share pickers to take a close look today.

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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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