Yield Plays? 10 Beefy stocks to chew over

Monday, Jun 27 2011 by
6
Yield Plays 10 Beefy stocks to chew over

The companies in this month's shortlist are sorted and selected based on their growth, both past and estimated future, as well as their current dividend and earnings yields. They all have steady histories over the past decade and I'd go so far as to describe them as good companies at good prices.

Generally I start at the top of this list and if I find something that fits my criteria I'll buy it, assuming I have any cash to deploy. Otherwise it's still worth reviewing a company or two in greater depth just in case some cash magically appears (I wish!), since most of the leg work will have already been done.

Company Index Industry Rolling PE Dividend(%)
Astrazeneca (LON:AZN) FTSE100 PHARMACEUTICALS 7.2 5.4
JD Sports Fashion (LON:JD.) FTSE250 APPAREL RETAILERS 7.7 2.7
Chemring (LON:CHG)  FTSE250 DEFENCE 11.6 2.7
BAE Systems (LON:BA.) FTSE100 DEFENCE 7.6 5.8
Clarkson (LON:CKN) SMALLCAP TRANSPORTATION SERVICES 10.2 4.0
Reckitt Benckiser (LON:RB.) FTSE100 NONDURABLE HOUSEHOLD PRODUCTS 14.4 3.5
Balfour Beatty (LON:BBY) FTSE250 HEAVY CONSTRUCTION 8.5 4.4
Interserve (LON:IRV) SMALLCAP BUSINESS SUPPORT SERVICES 7.6 6.0
Mitie (LON:MTO)  FTSE250 BUSINESS SUPPORT SERVICES 10.9 3.8
Carillion (LON:CLLN) FTSE250 BUSINESS SUPPORT SERVICES 9.0 4.4

 

I'm pretty sure that out of this list of companies there's something that I'd be happy to put into my pension fund, in fact I already own four of them.  I'm looking for something where I'd be happy to go to sleep for five years and trust that the investment has one hell of a good change of returning a fair profit in that time.  Or in the words of a rather clever chap,

"Only buy something that you'd be perfectly happy to hold if the market shut down for ten years" – Warren Buffett

That might be a bit of a stretch for most people, but it should get you in the right mindset for picking great companies.  Picking great companies is important because by buying any company's shares you are putting your money at risk and just as importantly, you are tying your economic future to their economic future.  How you live when you retire is going to be affected in a massive way by the value of your pension fund.  Pick the wrong companies and the consequences can be huge.  Pick the right companies at the right prices and your retirement might look a whole lot different.


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UK Value Investor is my monthly investment newsletter for defensive and income-focused value investors. Each issue includes a FTSE 100 valuation and projection, a unique defensive value stock screen and a detailed review of a 30-stock model portfolio, including any buy or sell decisions that have been made that month. … ...read more or visit website »


Disclaimer:  

This article is for information and discussion purposes only and nothing in it should be construed as a recommendation to invest or otherwise. The value of an investment may fall and an investor may lose all their money. Any investments referred to in this article may not be suitable for all investors.  Investors should always seek advice from a qualified investment adviser.


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Chemring Group PLC is a United Kingdom-based company engaged in the design, manufacture and sale of counter- improvised explosive device (IED) equipment, countermeasures, pyrotechnics and munitions. The Company operates in four business segments: Counter-IED, Countermeasures, Pyrotechnics and Munitions. Counter-IED segment includes IED detection equipment, chemical and biological threat detection equipment, IED electronic countermeasures, explosive ordnance disposal equipment and demilitarisation services. Countermeasures segment includes expendable active and passive countermeasures for naval and air platforms, land-based electronic warfare equipment. Pyrotechnics segment includes signals and illumination devices and payloads. Munitions segment includes missile and ammunition components. In May 2014, the Company acquired 3d-Radar AS, subsidiary of Curtiss-Wright Corporation. more »

Share Price (Full)
233.75p
Change
5.8  2.5%
P/E (fwd)
15.7
Yield (fwd)
2.1
Mkt Cap (£m)
440.7

Mitie Group PLC is a holding company. The principal activity of the Company is to provide management services. Its activities are focused on the provision of strategic outsourcing services. It operates in the Republic of Ireland, the Isle of Man, Guernsey, Jersey, Germany, France, Finland, Norway, Sweden, the Netherlands, Spain, Poland, Switzerland and Belgium. It operates in four segments: facilities management, property management, healthcare and energy solutions. Its facilities management division delivers facilities consultancy, management and service delivery to its clients. Its Property Management division offers an integrated property management service, including mechanical and electrical engineering, energy and more general facilities management services in addition to the traditional services, such as maintenance, refurbishment, painting, roofing, interior fit-out, fire protection, plumbing and heating. Effective January 15, 2014, it acquired Complete Care Holdings Ltd. more »

Share Price (Full)
279.4p
Change
2.3  0.8%
P/E (fwd)
10.6
Yield (fwd)
4.4
Mkt Cap (£m)
1,013

Carillion plc is an integrated support services company, with a portfolio of public private partnership projects and construction capabilities. It has operations in the United Kingdom, the Middle East and North Africa and in Canada. It operates in four segments: support services, which includes its facilities management, facilities services, energy services, rail services, utility services, road maintenance and consultancy businesses; public private partnership projects, which includes its equity returns on its investments in public private partnership projects in its sectors of defense, health, education, transport and secure accommodation sectors; middle east construction services includes its building and civil engineering activities in middle east, and construction services, which includes its United Kingdom building, civil engineering and developments businesses and its construction activities. Effective October 18, 2013, Carillion PLC acquired John Laing Integrated Services Ltd. more »

Share Price (Full)
329.5p
Change
2.7  0.8%
P/E (fwd)
9.4
Yield (fwd)
5.6
Mkt Cap (£m)
1,406



  Is Chemring fundamentally strong or weak? Find out More »


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My name is John Kingham and I'm the editor of UK Value Investor, an investment newsletter for defensive and income-focused value investors. That means I write about buying large, successful companies with long track records of profitable dividend growth, and buying their shares at low valuations and with high yields. My website includes a unique stock screen and a model portfolio which is managed using a checklist-based investment strategy.  The goal of the strategy is to produce a portfolio which combines a high yield and good capital growth with low risk, and which is easy to maintain in just a few hours each month. more »



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