Top 5 Dividend Paying Stocks - Investment Superstore

[Pages:7]Top 5 Dividend Paying Stocks

Report written by Bob Roberts | Head of Research

Berkeley Group (BKG.L)

% change 1 w eek candles

Berkeley Group Holdings (The) PLC

Ord

300%

250% 200%

BKbG

35

30 27.155

25

150%

b

100%

50%

h

-1b hl .22%

20 15

0%

10

4 Volume (Daily) - M's

4

4/1/11

Jul

'12

Jul

'13

Jul

'14

Jul

'15

Jul

'16

50 2 RSI (Wilder - Bars)

+64.7

5/9/16 50

alphaterm inal.co.uk

Chart (c) Alpha Terminal

BUY: BKG.L Buy Zone 2550p ? 2400p

Berkeley Group offers a dividend yield of 7.55% covered by earnings 1.3 times. Following the UK referendum, the share price broke out of a large top pattern and found support at 2050p bang on the 2014 lows. In 2014, after hitting 2050p, the price rallied for 14 months to 3780p, representing a staggering 84% upside.

Fundamental Outlook

Dividend: 200p Yield: 7.55% Dividend Cover: 1.3 PE: 9.86 EPS: 269 Ex Div: 13 August 2016 Events: Leaving the FTSE100

Technical View

Pros: ? Long term uptrend ? Ascending triangle consolidation pattern ? Completed a large head and shoulders top

Cons: ? Price is below 200 day moving average ? Broken long term trendline ? Potential bear flag chart pattern

Support: 2450-2200 Resistance: 2840-3300

1 of 6

CFD trading and other margin trading can result in losses that exceed your deposits. Ensure you understand the risks.

Standard Life (SL..L)

BUY: SL..L Buy Zone 352p ? 343p

Standard Life currently yields 4.9%. After selling off to 2011 levels, it has found support and broken a number of key levels to stake a claim to be back on the way to the 2015 level of 550p (52% upside to the current price). The technical view is looking good although it is slightly overbought in the short term.

Fundamental Outlook

Dividend: 18.36p Yield: 4.92% Dividend Cover: 1 PE: 20.68 EPS: 18.1 Ex Div: 8 September 2016

Technical View

Pros: ? Broken the strong downward trend channel ? Trading above 200 day moving average ? Completed a large base pattern

Cons: ? Overbought on the 14-day RSI ? Longer term down trend ? At key resistance level

Support: 352-343 Resistance: 375-405

2 of 6

CFD trading and other margin trading can result in losses that exceed your deposits. Ensure you understand the risks.

National Grid (NG..L)

BUY: NG..L Buy Zone 1040p ? 1015p

National Grid is in a fantastic multi-year uptrend, with the past 5 years providing significant price appreciation alongside a current yield of 4%. After breaking to new record highs recently the share price is consolidating and we expect a further break to the upside.

Fundamental Outlook

Dividend: 43.34p Yield: 4.05% Dividend Cover: 1.8 PE: 20.68 EPS: 13.88 Ex Div: 26th November 2016 Est

Technical View

Pros: ? Very strong long term uptrend ? Potential bull flag ? At Short term support

Cons: ? Could see further retracement ? Reversal candle pattern on the weekly chart ? Short term trend has turned down

Support: 1040-1015 Resistance: 1085-1150

3 of 6

CFD trading and other margin trading can result in losses that exceed your deposits. Ensure you understand the risks.

HSBC (HSBA.L)

BUY: HSBA.L Buy Zone 550p ? 520p

The UK Banking sector has been out of favour for some time now, however, HSBC with its significant overseas presence seems to have bucked the trend. Offering a 6% yield covered by earnings 1.2 times, the initial target for the share price is 660, and if it can break through that level the next stop is 750.

Fundamental Outlook

Dividend: 34.59pp Yield: 6.1% Dividend Cover: 1.2 PE: 13.6 EPS: 41.6 Ex Div: 3rd March 2017 Est

Technical View

Pros: ? Completed a large base pattern ? Broken through key resistance ? Broken strong 3-year down trend

Cons: ? Overbought on the 14-day RSI ? Longer term down trend ? Bearish Engulfing Candle pattern on the daily chart

Support: 545-480 Resistance: 585-650

4 of 6

CFD trading and other margin trading can result in losses that exceed your deposits. Ensure you understand the risks.

BAE Systems (BA..L)

% change 1 w eek candles 60% 40% 20%

BAE Systems PLC

b

a

BA. b

a

l

b

B

b

Ord 555503.25 500

B 450 400

+0.14% 0%

lb

B B

-20%

350 300

250

L

40 Volume (Daily) - M's

40

4/1/11

Jul

'12

Jul

'13

Jul

'14

Jul

'15

Jul

'16

50 2 RSI (Wilder - Bars)

+96.4

8/9/16 50

alphaterm inal.co.uk

Chart (c) Alpha Terminal

BUY: BA..L Buy Zone 520p ? 485p

BAE Systems has had its ups and downs recently but looking at the chart the long term trend is very strong. After recently breaking to record highs and showing short term overbought, we would expect a pullback and then for this uptrend to continue. Following the last break to 52-week highs, the price pulled back before rallying 30%.

Fundamental Outlook

Dividend: 20.9p Yield: 3.8% Dividend Cover: 1.5 PE: 17.9 EPS: 30.8 Ex Div: 20th October 2016

Technical View

Pros: ? Long term uptrend ? Broken to fresh highs ? Broken Bullish Flag pattern

Cons: ? Overbought on the 14-day RSI ? At record highs ? Overbought on the Stochastics

Support: 520-485 Resistance: 565-685

5 of 6

CFD trading and other margin trading can result in losses that exceed your deposits. Ensure you understand the risks.

About Clear Capital Markets

As a company our mission is to foster and maintain long-term client relationships, based on a solid foundation of mutual trust and respect. Our aim is to collaborate with clients to help them navigate the financial markets, and nurture a performance-based environment, based on thorough research and investment ideas. Our ultimate goal is to help our clients beat the market professionals and achieve successful investment results.

Clear Capital Markets stands out from the rest of the investment community because of our highly experienced and qualified brokers, working alongside our diligent support staff. Based upon oldfashioned personal service principles, every client, regardless of the bespoke service they require, is assigned their own dedicated broker. Find out more about us at: clearcapitalmarkets.co.uk

Contact

Clear Capital Markets Ltd 9 Devonshire Square London, EC2M 4YF

Telephone: +44 (0)20 3869 6080 Email: enquiries@clear-cm.co.uk Website: clearcapitalmarkets.co.uk

Risk Warning

The value of shares can fall as well as rise; you may not necessarily get back the amount you invested. Past performance is no guarantee of future performance. Trading in derivatives such as Contracts for Difference or Foreign Exchange (FX) may not be suitable for all types of investor as they carry a high degree of risk. You may lose all of your initial investment and in some cases you may be liable for a greater sum than this. Extended runs of losses as well as profits can occur. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws are subject to change and depend on individual circumstances. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. This document is published by Clear Capital Markets and does not constitute a solicitation or personal recommendation for the purchase or sale of investment. The investments referred to may not be suitable for all investors. Any data or views given should not be construed as investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Clear Capital Markets Limited is authorised and regulated by the Financial Conduct Authority FRN 706689.

Clear Capital Markets ltd and its employees do not have a proprietary investment in this financial instrument.

6 of 6

CFD trading and other margin trading can result in losses that exceed your deposits. Ensure you understand the risks.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download