Shares Magazine – May 23, 2019

23 May 2019 | SHARES | 21

s/s

7.7% YIELD

,Zd

ǀŝǀĂ͛Ɛ;s͘Ϳ forecast dividend for this year of 32.2p

ƉƵƚƐƚŚĞƐŚĂƌĞƐŽŶĂƉƌŽƐƉĞĐƟǀĞLJŝĞůĚŽĨϳ͘ϳйĂŶĚ

ŝƚƉĂƐƐĞƐƚŚĞĮƌƐƚƚǁŽƚĞƐƚƐǁŝƚŚŇLJŝŶŐĐŽůŽƵƌƐ͘dŚĞ

payout is covered almost twice by earnings and

ŵŽƌĞƚŚĂŶĨŽƵƌƟŵĞƐďLJĐĂƐŚŇŽǁ͘

DŽƌĞŽǀĞƌŝƚŚĂƐŶŽĚĞďƚĂŶĚ͕ĮƫŶŐůLJĨŽƌƚŚĞ

ďŝŐŐĞƐƚĐŽƌƉŽƌĂƚĞƉĞŶƐŝŽŶƉƌŽǀŝĚĞƌŝŶƚŚĞh<͕

ƚŚĞϮϬϭΘƌĞƉŽƌƚĂŶĚĂĐĐŽƵŶƚƐƐŚŽǁƚŚĂƚŝƚŚĂƐĂ

ƉĞŶƐŝŽŶƐƵƌƉůƵƐŽĨάϯ͘ϮρďŶ͕ŶŽƚĂĚĞĮĐŝƚ͘dŚŝƐĂƌƟĐůĞ

ƉƌŽǀŝĚĞƐŵŽƌĞĚĞƚĂŝůŽŶǁŚLJǁĞůŝŬĞǀŝǀĂĂƐĂŶ

investment.

THREE STOCKS TO BUY

FOR HIGH YIELDS

KƵƚŽĨƚŚĞϮϯƐƚŽĐŬƐLJŝĞůĚŝŶŐςйŽƌŵŽƌĞ͕ƚŚƌĞĞ

seem to us worthy of buying at the current

ƉƌŝĐĞ͗ŝŶƚŚĞĮŶĂŶĐŝĂůƐĞĐƚŽƌ͕ǀŝǀĂ;s͘Ϳand

^ƚĂŶĚĂƌĚ>ŝĨĞďĞƌĚĞĞŶ;^>Ϳ, and in the

consumer sector/ŵƉĞƌŝĂůƌĂŶĚƐ;/DͿ.

DIVIDEND COVER

WƌŽƐƉĞĐƟǀĞĞĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ;W^Ϳ

рƉƌŽƐƉĞĐƟǀĞĚŝǀŝĚĞŶĚƉĞƌƐŚĂƌĞ;W^Ϳ

OPERATING FREE CASH FLOW COVER

EĞƚŽƉĞƌĂƟŶŐƉƌŽĮƚͲƚĂdžнĚĞƉƌĞĐŝĂƟŽŶ
ĂŶĚĂŵŽƌƟƐĂƟŽŶͲĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞ
ͲŝŶĐƌĞĂƐĞŝŶǁŽƌŬŝŶŐĐĂƉŝƚĂů

INTEREST COVER

KƉĞƌĂƟŶŐŝŶĐŽŵĞнŝŶƚĞƌĞƐƚŝŶĐŽŵĞ

рŝŶƚĞƌĞƐƚĞdžƉĞŶƐĞ

HOW TO DO THE

CALCULATIONS

380

440

500

560

AVIVA

2018 2019