A FTSE 100 growth dividend stock I'd buy today

Many investors may be cautious when considering my tip that easyJet(LSE: EZJ) is an appealing pick for income chasers.

You see, with adverse currency movements playing havoc with the budget flyer's bottom line in recent times (causing profits to duck by double-digit percentages in each of the past two years), shareholders have had to swallow a double dividend downgrade in this time.

However, with earnings expected to get flying again from this year, City analysts are also predicting that dividends will begin to ascend again too. A suggested 28% profits improvement in the year to September is expected to vault the payment to 48.9p per share from 40.9p last year, meaning a juicy 3% yield is on offer.

The good news continues as well. Supported by an estimated 20% earnings improvement in fiscal 2019, the dividend is expected to vault to 63.8p. Consequently the yield marches to a much-improved 3.9%.

Dividends gonna fly again

And there's plenty of reason to expect both profits and dividends to keep marching northwards. Through its route and hub expansion programme, easyJet is building the base to latch on to soaring demand for cheap airline tickets across the continent, measures that helped passenger numbers jump 3.4% during March to 6.55m.

And its robust market position on the continent would receive another hefty dose of jet fuel should the FTSE 100 company succeed in its bid to swallow up industry rival Alitalia.

At current share prices, easyJet can be picked up on a forward P/E ratio of 15.4 times. This is far too cheap given its splendid growth prospects, in my opinion.

The 5%+ yielder

Those looking for exceptional dividend growth may also want to take a look outside the Footsie and have a gander at Ibstock (LSE: IBST), another firm with a very bright outlook.

Dividends at the brickmaker have more than doubled over the past three years thanks to its strong cash generation and solid profits growth. And the payout picture remains compelling as Ibstock ramps up production to capitalise on the supply shortage that should continue sending brick values steadily skywards. Its new Leicestershire factory will help here and is set to crack into action later on in 2018.

While earnings are expected to dip 2% in 2018, the strength of Ibstock's balance sheet is still predicted to drive the dividend to 13.4p per share in 2018, meaning investors can drink in a gigantic 4.6% yield.

And with earnings expected to bounce again in 2019 (an 11% rise is currently anticipated), the FTSE 250 firm looks set to raise the dividend to 14.7. This nudges the yield to a blockbuster 5.1%.

The strength of the British housing market means that Ibstock looks in great shape to deliver strong shareholder returns for much longer. As a consequence I believe its forward P/E ratio of 13.7 times makes the company a steal right now.

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Royston Wild owns shares in Ibstock. 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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