Special dividends have long been overshadowed by share buybacks. The latter has proven popular with company management due in part to its positive effect on EPS, which is often linked to bonuses, and the flexibility it brings. This contrasts with ordinary dividends, which the market expects to be repeated in future years once they have commenced.
However, ITV (LON:ITV) is one of the few companies in the FTSE 100 which pays a special dividend. In 2016 it amounted to 5p per share. It took the company's total yield including ordinary dividends to over 6%, which puts it in the top decile of large-cap income stocks.
In my view, ITV's special dividend means more than just a high yield. It signals a confident outlook and a business model which has been drastically improved in the last few years. Despite obvious risks from Brexit and a change in CEO, this makes ITV a sound long-term buy.
by Zak Mir| Trading| 1 mins. to read There is an interesting shuffling of the fundamental pack as far as Angus Energy (LON:ANGS) is concerned, it has been announced today.
by Evil Knievil| Evil Diaries| 1 mins. to read Driving back from Oxford on Tuesday afternoon I passed a large roadside advertisement, put up by UKIP, calling for "less intergration".
by Zak Mir | Trading | 1 mins. to read PCG Entertainment (LON:PCGE) is a company which I have had on the passive "watchlist" for quite some time. It would appear that at the very least, there are some signs of the stock bumping along the bottom.
by Tim Price | Economics | 1 mins. to read Historians, in their quest to make sense of the past, refer to two types of source material. Primary sources are those artefacts, diaries or documents created more or less at the same time as the events they depict.
by Nick Sudbury | Funds | 5 mins. to read Normally you would expect the best performing investment trusts in a particular segment of the market to trade on the tightest discounts or largest premiums, but there are other factors that can distort the situation.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such decision.
Ingen kommentarer:
Send en kommentar