Friday Email: 07 June 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 FTSE 100 has now fallen from over 6800 to 6334 in line with our expectations of a correction in the market. This week was very quiet on the corporate front. I have just looked at the results for our dividend of the week, Kcom and am very pleased to see a commitment to increasing the dividend by 10% per annum until 2016.
I was quite surprised to see Monks investment trust blame their poor performance on the search for yield at the publication of their annual results on Wednesday. We have highlighted plenty of decent growth stocks with decent yields and decent dividend increases over the past months. One such stock is Synergy health which increased its dividend by 15% last Wednesday and the shares are currently trading at an all time high. Funnily enough, strong dividend growth tends to occur when the stock is a growth stock.
Looking forward, I am stuggling to figure out what is going to lift the market over the summer and would still expect it to continue to drift sideways to down in spite of the correction that we have already seen. This should present plenty of opportunities for us to select good dividend stocks.
The Friday email is delivered to over 20,000 subscriber’s every week, and remains a widely read run-down of recent events and what investors can expect in the week ahead written by our chief analyst Mark Riding.
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Read next: 31 May 2013
The market has held up reasonably well following last weeks falls. A half term week that was shortened by the bank holiday on Monday produced little of note on the corporate front. I still remain nervous of the market short term and expect further downward correction. Previous dividend of the week, Caledonian Investments increased their dividend by 10% yesterday. Tate & Lyle (5.2%) and Severn Trent (8.2%) also increased their dividends, whilst De La Rue and Brewin Dolphin both maintained their dividends at last years level. In spite of a drop in profits, the weeks star performer was Victrex increasing its dividend by 15% in a show of confidence for the future.
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