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Friday Email: 10 February 2017

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 trading in a fairly narrow range at the moment. The FTSE 100 has gained about 100 points this week and is within a hundred points of the all time high reached in mid January. Hopefully the phase of hearing what Donald Trump has done every day will pass soon. He does seem to be a little quieter this week; Although he did spark a rally on Wall Street last night by stating that he was going to do something phenomenal in the tax area.

Back to dividends and the markets and it has been a pretty good week. Bellway and Redrow confirmed what we said at the start of the year...the markets have in our opinion got the housing market very wrong post the Brexit vote. Remember what the markets thought of the miners in 2015? Rio Tinto has just declared the highest dividend in its history last week. This year it is the retailers as well as the housebuilders that are out of favour now, but they will return to form. Meanwhile, absolute darlings of the market such as Smith & Nephew, ABF, Diageo and others trade on multiples of around 20 for giving you a single digit % dividend increase. I can remember when ABF and the drinks companies used to trade on single digit multiples. It is ironic that much of the glamour in the ABF share price comes from its move into retailing with Primark.

The reporting season for the 2016 year end is underway and so far is looking pretty good from the trading statements. The real numbers and the dividend declarations are starting to come out and will reach full flow from the 20th February and into March.

This email was originally sent on Friday 10 February 2017

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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