Friday Email: 08 April 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:
The FTSE 100 began last Friday morning at 6174 and is currently trading at 6161 in premarket trade. The week had a high of 6199 and a low of 6067. The market is getting no clear steer on the Brexit vote so uncertainly and volatility will prevail. Nobody really knows what the impact would be with the CBI claiming that Brexit would significantly lower UK living standards, whilst Neil Woodford is claiming that it would be a 'nil sum game'.
The reporting season is now largely complete and we now reap the benefits of the announcements made during February and March with hundreds of companies going ex dividend in the coming months.
The biggest increases in the past month came from 4imprint (30%), 32Red (21.4%), Cineworld (28.7%), SDL (24%), Legal & General (19%), Brooks Macdonald (20%), Spire Healthcare (33%), NAHL group (19%), Bellway (36%) and Card Factory with a 25% increase.
Going ex-dividend during April with attractive payouts of over 2.5% from the single dividend we have on the 14th April; Savills, Standard Life, Intu, 888 holdings and Molins.
On the 21st April we have Petrofac, Novae, Nahl, Hansteen, RPS and Communisis.
On the 28th April we have Weir, UBM, Tullett Prebon, ITV, Legal & General, Foxtons, William Hill and Cobham.
Looking particularly attractive from a yield perspective are ITV, Legal & General, McColls Retail Group and Elementis. All yield over 4% from a combination of ordinary dividends and special dividends.
Meanwhile, Easyjet are starting to look attractive again if analysts forecasts are to be believed as it now trades at a deep discount to the market, but still remains a big beneficiary of the persistently low oil price. However, the CEO of Easyjet has weighed into the Brexit debate by claiming that cheap flights would end and that air travel would become the preserve of the elite. Hence, the reason for the deep discount possibly.
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: 01 April 2016
The past shortened week has seen more volatility in the stock market with the sequence from Tuesday being down, up, down and today we are down for an overall loss on the week and the month. For March the FTSE 100 is down about 70 points. As always when the markets are tough, the bulk of any returns comes from dividends. Market uncertainly will continue as the oil price and the dollar fly around and of course in the UK we have the added uncertainty of the Brexit vote which will not help the UK markets at all.
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