Six stocks that could double their dividend quickly
A City analyst has revealed the companies it thinks could turbocharge shareholder payouts. It also names firms it likes with fast-growing revenue and profit.
9th July 2026 13:34
by Graeme Evans from interactive investor
Dividend forecasts today placed Marks & Spencer Group (LSE:MKS) and Babcock International Group (LSE:BAB) near the top of a City bank’s screen of companies with the fastest payout growth over the next two years.
Peel Hunt’s analysis of stocks in its coverage also included Pan African Resources (LSE:PAF) and two other miners with the potential to double dividends in the period between 2025 and 2027.
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They are joined by DFS Furniture (LSE:DFS), which recently returned to the dividend register, and by small-caps Hostelworld Group (LSE:HSW) and S4 Capital (LSE:SFOR).
The bank’s growth screens also place ITM Power (LSE:ITM), Raspberry Pi Holdings (LSE:RPI), Ceres Power Holdings (LSE:CWR) and Serica Energy (LSE:SQZ) in the top 10 for revenues between 2025 and 2027. Gulf Keystone Petroleum Ltd (LSE:GKP) and IQE (LSE:IQE) are near the top of the screen for underlying earnings growth.
There are 16 companies in Peel Hunt’s coverage that are expected to achieve revenue growth of over 50%, while 11 are seen doubling their rate of underlying earnings.
The bank, which has recommendations on about 350 stocks, hopes its growth screens will encourage investors to explore some of the companies in more detail.
It added: “Growth rates can vary for many different reasons, and not just due to how businesses or industries are performing.”
The M&S dividend is forecast to grow by 94% in the two-year period to reach a total of 9.3p across the 2027 calendar year.
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The retailer, which held its AGM on Tuesday, is due to pay a final dividend of 3p a share tomorrow (Friday) after lifting the total for 2025-26 by 16.7% to 4.2p a share.
M&S has described its current dividend approach as conservative, which it said was due to its need to focus resources on investment.
Babcock International recently recommended a dividend of 5p for payment on 25 September. This resulted in a total of 7.5p a share for the year to 31 March, an increase of 15% that the engineering company said reflected confidence in its platform and future growth.
Peel Hunt sees a total of 13.3p in relation to the 2027 calendar year, which represents growth of 84% over 2025 as Babcock continues to strengthen its position in defence and nuclear markets.
Gold miner Pan African Resources, which joined the FTSE 250 in December, is among six companies where Peel Hunt’s forecasts show a doubling of dividend growth up to 2027.
Boosted by a record gold price, the Australia and South Africa-focused miner recently paid a maiden interim dividend equivalent to 0.5474p a share. This followed the substantial degearing of its balance sheet, with a net cash position expected during 2026.
The other top mining-focused stocks in Peel Hunt’s dividend growth screen are Spain-based FTSE 250 firm Atalaya Mining Copper SA (LSE:ATYM) and FTSE All-Share business Ecora Royalties (LSE:ECOR).
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The latter, which is a critical minerals-focused royalty and streaming company, is due to pay 1.4 US cents to shareholders on 31 July. This is part of a total of two US cents a share for 2025, a figure that Peel Hunt expects will more than double by 2027.
DFS Furniture paused its dividend in 2025, driven by economic headwinds and the group’s net debt position being outside its target range.
However, the financial position has significantly strengthened over the last 18 months after debt more than halved to £60.6 million at half-year results in March. This allowed the payment of 1.1p a share on 29 May, with Peel Hunt forecasting growth of 235% between 2025 and 2027.
The bank’s forecasts also point to 181% dividend growth by Hostelworld after the FTSE All-Share social travel platform began distributions during 2025.
In an update published today, the Ireland-based company reiterated full-year guidance for 2026 after net revenues rose 12.2% to 52.2 million euros (44.5 million) in the first half.
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