Friday Email: 26 February 2016
Every Friday morning our lead analyst Mark Riding sends out his weekly run-down and upcoming events in the investor calendar, like this one:
It has been another volatile week with markets rising and falling and then rising again this past two days to see us about 140 points higher than where we were on Monday morning. It has been the busiest week of the year so far and it is an important time for the income investor because this is the time of the year when the bulk of final dividends are declared. As you know our favourite timeframe for picking income stocks is over three dividends, so you are always going to get the highest return if the sequence is Final / Interim / Final. Particularly so when share prices on the stock market are subdued.
A particularly interesting sequence comes from HSBC at the moment. Admitedly, it is a quarterly payer but the annual sequence is interesting from an income perspective and does include two finals:
Final ex on 03/03/16 - 14.77p (declared)
Interim ex on 19/05/16 - 6.6p (estimate)
Interim ex on 18/08/16 - 6.6p (estimate)
Interim ex on 20/10/16 - 6.6p (estimate)
Final ex on 02/03/17 - 15p (estimate)
This represents an opportunity between now and next Wednesday for investors to buy HSBC and hold for just over a year to pick up approximately 49.57p in dividends. The shares are currently trading at 448p (Thursdays close)
The Optimizer will throw up lots of opportunites like this in the coming weeks as more and more final dividends are declared.
The past week has seen some very good dividend increases notably from Rightmove (23%), Kennedy Wilson (37%), Mondi (24%), Rentokil (13.1%), Relx (14%), St James place (20%), Galliford Try (18%), Howden Joinery (17.8%), RSA (250%), Barratt (25%), Provident Financial (22%), Unite (34%) and Bovis homes (14%)
The week ahead continues to be very busy albeit slightly less so than this week.
New into DividendMax this week we have Molins.
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.
It’s included as part of the free DividendMax trial.
Read next: 19 February 2016
That was a good week with the oil price and stocks rising as investors sought to pick up risk assets at what look like very reasonable prices. The FTSE 100 rose from 5700 on Monday to just under 6000 this morning to continue the rally which began last Thursday.
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