Should I Buy BT Group plc (ADR) (BT) for My ISA?

Earnings on course to tread higher
City analysts expect earnings per share to maintain a steady ascent in coming years — a 5% forecast increase to 24.9 pence for the year ending March 2013 is anticipated to rise 1% to 25.1 pence in 2014, and 7% to 26.9 pence in 2015.

I reckon that the telecoms giant represents decent value for money at current prices. A P/E reading of 10.8 for this year is forecast to slip to 10.7 in 2014, before sliding to 10 during the following 12 months.

BT also looks a canny pick for income investors seeking to latch on to excellent prospective dividend growth. A projected yield of 3.5% for 2013 — matching the average payout yield for the FTSE 100 — is expected by City experts to accelerate to 4% and 4.5% in 2014 and 2015 respectively.

After slashing its dividend in 2009 due to heavy earnings pressure, the company has rebuilt its progressive dividend policy that is now safeguarded with much better dividend coverage. Meaty forecast coverage of 2.6 times for 2013 is expected to remain high at 2.4 times and 2.2 times for 2014 and 2015.

The article Should I Buy BT Group for My ISA? originally appeared on Fool.com and is written by Royston Wild.

Fool contributor Royston Wild has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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