Very few stocks ever have a dividend yield of 15% or more, and if they do then the dividend has probably already been cut or suspended. For example, if I sort my watch list of dividend-paying stocks by yield, I get Provident Financial and Capita at the top, with yields of 20% and 17% respectively.…
It’s been an uncertain decade for the defence industry. Disappointing economic performance across the developed world has prompted a period of cutbacks to military budgets. This has created a headwind for many defence-related businesses, which has caused disappointing financial performance and falling share prices in many cases. Today, though, the prospects for the industry seem…
The housebuilding sector has enjoyed a period of stunning growth since the financial crisis. It has been supported by demand-side policies from the government, as well as a continued lack of supply. This has meant that profitability and cash flow across the sector has soared. It has also allowed dividend payments to increase, with the…
The last decade has been a rollercoaster ride for investors in the oil and gas industry. Just under ten years ago, the oil price peaked at $158 per barrel before falling sharply to trade at less than one-third of that level. A recovery in the period 2009-2014 was undone by a glut of supply. This…
In 2017 global emerging markets stocks and currencies posted their best return since 2009. And even after this robust performance emerging markets continue to offer attractive investment opportunities as economic growth outpaces the developed world in 2018 (4.9% vs 3.3% forecast growth this year (Shroders)), current account deficits improve, political volatility moderates and structural reforms…
It may sound strange to talk about housebuilders such as Barratt (LON:BDEV) and Bellway (LON:BWY) as turnaround opportunities. After all, the two stocks are up 136% and 163% respectively in the last five years. However, in the last month their shares are 11%+ lower after the government announced potential plans to crack down on land…
For many dividend investors, the demise of Carillion was a disaster. Not only did their portfolios lose an important source of income, they also saw a permanent loss of capital. It’s easy to see what went wrong with hindsight, and in the August 2017 issue of Master Investor I wrote about some of the key…
This week has been dominated by falls in share prices across the globe caused by raised inflation expectations. It would be unsurprising for there to be more volatility as investors continue to adjust their forecasts for inflation. With Donald Trump’s tax and spending policies yet to have their full impact, coming to terms with higher…
The UK property sector has experienced a mixed couple of years. The EU referendum seems to have caused investor confidence in the sector to decline, with the outlook for the UK economy now being less certain than it was previously. Property prices could come under pressure in the near term. However, the valuations of these…
While a number of UK-focused stocks may be struggling due to the uncertainties created by Brexit, not all global stocks are performing well, either. In general, their valuations may have benefited from weaker sterling since the EU referendum, as well as continued strong economic growth in the developing and developed world. However, there remain a…
