During the current economic situation investors are demanding a high return on risk in the equity markets. This is due to the uncertainty felt in the strength of the major economies. As of recently economic data has showed that the economic recovery has begun to slow, bond prices are high and equity prices are who knows where. The question is whether the economies are going to continue to grow or are going to fall back into a double dip recession.
This aversion from risk has left some strong companies looking under priced and paying very attractive dividends. The list below shows the top 10 FTSE 350 companies ranked by projected yields. Companies with dividend covers of less than 1.25 have been filtered out, along with highly leveraged companies with gross gearing excluding intangibles below -100. The companies left offer attractive yields with some degree of safety.
All of the companies, excluding Hays Plc, have a projected P/E ratio under 12 and most offer a P/E to Growth ratio of under 1. The Game group Plc which is expected to increase its dividend over the next 3 years seem an attractive proposition at this price, but as investors always say “do your own research”.
I have enjoyed reading your articles. It is well written. It looks like you spend a large amount of time and effort in writing the blog. I am appreciating your effort.
ReplyDeleteUk dividend stocks