UK – Three stocks with secure dividends – MoneyWeek

Themarketrallysincelastyearhasbeenafantasticrelieftoall,saysDavidJonesinShares,butitis“atrifleoptimistic”toexpecttoseethesamegainsinsharepricesthisyear。

Thatmeansthatitisprobablytimetostartconcentratingonsharesthatproduceareasonabledividendagain。

Itistemptingwhendoingsotoplumpforanyoneofthe120quotedcompanieswithhistoricdividendsof5%ormore,butthatwaydangerlies。

Therealkeyistoestablishwhetherthosedividendswillbesustainableinfuture。

Thefollowingsharesallhavedividendcoverofover1。

5times(ie,theactualdividendcouldhavebeenpaidmorethan1。

5timesoutofthefirm’snetprofits)。

Capitalgrowthisalwaysabonus,sotechnicalanalysishasbeenappliedtothesestocks,ashasaconsiderationofthefundamentals。

Thisshouldhaveeliminatedanythatcarrytheriskof“severedownside”。

OnestockthatmadeitthroughthesefiltersisLithoSupplies。

Yielding5。

5%andwithadividendcoverof2。

2,thisFTSEFledglingpublishingandprintingcompany’ssharepricewasina“relentlessdowntrend”upuntilayearago。

Butthereareencouragingsignsofrecoverypre-taxprofitshit£800,000lastyear,andthestockhasbeenmovingsteadilyhighersinceApril。

Yetthevaluationisstilllow(thep/eis10。

5times)andtheforecasttotaldividendpayoutfor2004of3。

5pwouldpushtheyieldupto6。

4%。

Earningspershareisforecasttoriseto5。

2pthisyear,andgiventhegroup’snegligibledebt,strongcashflowandlimitedneedforcapitalexpenditure,thatshouldallowdividendgrowthtomatchestimates。

Furtherreassurancecomesinthefactthatventurecapitalist3iGroupownsa5。

8%holding。

Aslongasanypullbacksintheprice,nowat57。

5p,donotbreakthe45plevel,“furthergainslooklikely”。

Withamarketcapitalisationof£5m,NormanHayis“aminnow”intheengineeringworlditspre-taxprofitinthesixmonthstotheendofJune2003amountedto£330,000,butitsconsistentdividendpolicyhasshown“it’slessaboutsizeandmoreabouthowyouuseit”。

Ayear-enddividendof1。

2phasbeenpaidoutforthelasttwoyears,givingahealthyyieldof6。

2%in2002,despiteuncertaintiesinthecoremetal-finishingbusiness。

Theorderbookforequipmentmanufacturinglooksmuchhealthierforthisfullyear,butevenwithoutthatthedividendiswellcoveredat2。

8times。

Thechartsupportsthisgoodoutlook;havingbrokenthrough30pinSeptember,therearesignsof“strengthreturning”。

Theonlydrawbackisthe“slightlyscary”15%bid/offerspread,makingsharesinNormanHayexpensiveto“jumpinandoutof”。

ThesharepriceatTolenthas“reallycometolifeoverthepasttwoyears”astheconstructorandcivilengineerhasratchetedupaclientlistthatincludesGoldmanSachs,BritishSteelandEnterpriseOil,saysJones。

Andthe£11。

5mcompanyhasjustwona£10mcontractwithAmcoDevelopmentsfornewofficesinRichmond,Surrey。

Theyieldonthisstockisatasty5%,butmorecomfortingstillisthatitiscoveredthreetimes。

Projectionsforthesecondhalfoftheyearareexpectedtoshowevengreaterpromise。

Andasfarasthechartisconcerned,abreakthrough100pfromthecurrent88。

5p“shouldprovethetriggerformoregains”。

However,therearedrawbacks。

Thereareonly12。

8millionsharesincirculationand51。

8%oftheseareownedbyAmcoInvestments。

Thepriceonthetradingscreenisforupto1,000shares,andthespreadat85p-92p“iswideenoughtodriveabusthrough”。

Thefirmmaywellhaveaprogressivedividendpolicy,butthesharesare“notforthefaint-hearted”。

NakedTextNakedText


bckbet安全吗_bck体育安全吗_bckbet注册网址官方网站