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…
This week, the Halifax House Price Index said residential property prices in the UK recorded their first quarterly decline since 2012. The reasons given for this centred on affordability. House prices have apparently become too expensive given rising inflation and the squeeze on consumer spending which is beginning to be felt across the UK. While…
There will inevitably be winners and losers from Brexit. While it may be the latter who feature most prominently in the headlines, there are plenty of opportunities to profit from the effects of Brexit. One change brought about by the UK’s decision to leave the EU is higher inflation. Last month it moved higher than…
Since my earliest days of investing, I’ve made my biggest returns on recovery stocks. While they’re not for everyone, for investors like me who can take a long-term view and accept above-average volatility, they can prove to be highly rewarding. I’ve found the most opportunistic recovery stocks are in sectors where the long-term outlook is…
It’s always easy to spot bubbles in asset prices after they have burst. Doing so beforehand is more challenging. However, global stock markets could be severely mispriced at the moment and there may be the potential for a bursting bubble in the medium term. The main reason for this is a lack of concrete data…
The European banking sector made gains earlier this week following the first round of the French election. Investors seem to be upbeat about the prospects for pro-European candidate Emmanuel Macron. If he wins in the second round against Marine Le Pen, the consensus among investors seems to be that the EU and the Euro could…
If the last year has taught me one thing, it’s that assumptions should never be made when it comes to politics or the economy. For example, the EU referendum and US Presidential election were supposed to deliver outcomes which differed wildly from the actual results. With a general election now less than seven weeks away,…
Being able to put emotions to one side is possibly the most difficult part of investing. Accumulating knowledge and capital is within the reach of most people. However, being entirely logical while also taking subjective stances on companies is tough. It’s all too easy to allow a positive or negative experience with an industry or…
Less than three years ago, Tesco (LON:TSCO) was in dire straits. It had recently announced a possible overstatement of profits, its sales growth was negative and its outlook was downbeat. Fast forward to today and the company’s potential for rising profitability as well as an increasing share price is high. The catalyst for this revolution…
CPI inflation may have held steady at 2.3% in March, but it is likely to cause intense pressure for UK consumers in future months. A rate of 3%+ looks likely as a weak pound gradually filters its way through into higher costs for UK consumers. Looking ahead, things could therefore get worse for UK retailers.…
