Friday Email: 08 February 2013
Every Friday morning our lead analyst Mark Riding sends out his weekly run-down and upcoming events in the investor calendar, like this one:
The market is starting to look nervy with the sustained rise seemingly at an end. I remain bullish for the full year outcome and would not be surprised to see the FTSE 100 hit 7000 this year. However, I still expect a pullback in the short term, which will present a buying opportunity. As I pointed out in my recent Trading Research Point article, the U.K is spoiled when it comes to dividend payments and U.K. stocks consistently make 'dividend of the week' The great thing about sustained high dividends is that the market is underpinned by income and that would point to a more than likely rise in capital values if dividends keep growing. This week has not disappointed either. We saw a 50% rise in the Smith & Nephew dividend. We saw Beazley declare a final dividend of 5.6p and announce a special dividend of 8.4p. Randgold resources increased its final dividend by 25% and ARM holdings by 35%. Some of the large caps; Glaxo, B.P and BG Group also increased their dividends this week. Photo-me international also announced a special dividend of 3p per share this week and has now risen over 50% since my article making it 'dividend of the week' on 20th November 2012. I continue to hold the opinion that Cathay International is a good price at the current level, although it has risen 10% since my TRP article. I am of the opinion that investors can expect more.
TRP articles mentioned:
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Read next: 01 February 2013
The markets have been pretty good again this week, but I am starting to feel that a correction is due.
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