Forget the expensive valuations! 2 dividend stars that could make your fortune

Tritax Big Box (LSE: BBOX) may not be everyone's cup of tea on account of its high valuations.

A prospective P/E ratio of 22 times may not exactly be the stuff of nightmares, but it still sails above the widely-regarded value benchmark of 15 times or below. However, I would argue that the provider of 'big box' logistics facilities to major retailers and consumer goods manufacturers is still a brilliant choice at current prices.

While retail conditions are becoming ever-tougher in the UK, the internet segment -- an area which of course relies heavily on the sort of gigantic spaces that Tritax provides -- continues to grow at an impressive rate. And with the business still extremely busy on the acquisition trail (it snapped up two more facilities in Stoke-on-Trent late last month for £78.5m) to capitalise on this trend, earnings look set to keep powering higher.

The City is forecasting earnings expansion of 4% in 2017 and 11% in 2018, and these growth estimates are expected to keep driving dividends skywards. Last year's 6.2p per share payment is predicted to rise to 6.4p and 6.7p this year and next, meaning that Tritax boasts mammoth yields of 4.3% and 4.5% for these periods.

What a record!

PZ Cussons(LSE: PZC) may not pack the formidable yields of Tritax, but make no mistake: the household goods giant is one of the hottest properties out there for dividend chasers.

You see, Cussons has lifted the annual dividend for 44 years on the spin, a record that is as rare as hen's teeth in the world of share investing. And the City does not see an end to this brilliant run any time soon -- the 8.28p per share reward forked out in the year to May 2017 is anticipated to stride to 8.7p in the current period, and again to 9.2p next year.

These projections create chunky yields of 2.8% and 2.9% respectively.

Soap star

It is no surprise that Cussons is expected to keep dividends on an upward bent thanks to the brilliant earnings visibility created by its broad range of shopper favourites. Products like Morning Fresh washing up liquid, Original Source shower gel and Imperial Leather soaps and bath items can be found lurking in cupboards across the globe.

And while Cussons is not immune to broader macroeconomic pressures (indeed, the FTSE 250 firm saw revenues dip 1.5% in fiscal 2017 to £809.2m thanks in no small part to tough trading conditions in Nigeria), it continues to invest heavily in its product ranges to face near-term trading challenges and get the bottom line back on track.

Such measures are expected to see Cussons bounce from the 2% earnings decline punched last year to rise 3% this year, and to advance an extra 6% in fiscal 2019. And I for one am confident that the company's excellent exposure to emerging economies of Asia and Africa (from where it currently sources two-thirds of sales) should deliver sustained profits growth further out as rising disposable incomes there bolster demand for its goods.

A forward P/E ratio of 18 times is slightly heady on paper, but I reckon Cussons' brilliant product stable and vast geographic footprint warrants such a premium.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of PZ Cussons. 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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