Sunday newspaper share tips
We round-up the Sunday newspaper share tips. This week a strong crop of dividend payers
Financial Mail – Midas
Midas takes a look at Cable & Wireless Worldwide which has had a difficult time of late but now yields a shade under 7% and looks attractive
Sunday Telegraph – Questor
Biocompatibles
Questor recommended buying shares in Biocompatibles because it was profitable and paying a dividend. Now BTG wants to buy the company, offering1.6733 new BTG shares and 10p in cash for each share in Biocompatibles. The deal will expand BTG's commercial infrastructure in the US and gives it access to Biocompaibles' major product – 'drug-eluting bead technology.' Questor recommends that investors take up the offer.
Davis Service Group / Berendsen
Textile group Davis Service Group is a 'dull and steady' company with a good stream of cash and also the chance for capital growth thanks to a new strategic plan.
Questor says it is 'implementing improvements in sales processes, which it says will allow it to grow revenue at 1% to 2% above GDP - as well as growing underlying earnings in the high single digits over the medium term.'
The company will be changing its name to Berendsen – a name it operates in Europe. It is a successful firm providing everything from bedding and laundry to the NHS to workwear and industrial wipers in the Netherlands. Shares yield 5% and are twice covered by earnings. Buy
Sunday Times
Pennon
Pennon is best known as the owner of South West Water, but it is also Britain's biggest exporter.
Its waste management and recycling arm,Viridor, handles 5m tonnes of rubbish a year. Much heads on ships to China, where it is reprocessed, then shipped back as finished products.
'Rubbish could be Pennon's saviour.' The five-year Ofwat cap on water process led to a cut in dividends by rival firms but Pennon has pledged to increase its dividend by 4% a year.
If it does so it will be thanks to waste. Liberum Capital predicts the Pennon will 'double its energy output and triple earnings from waste within five years.' Worth a look.
Cable & Wireless Worldwide (C&WW) gave a profit warning in July due to government cuts. Its half-year results were not inspiring with sales flat but it says it can meet reduced full-year expectations. It will concentrate on growing profit margins.
CWW has a £120m dividend commitment that means it currently yields almost 7%, 'but cashflow is weak.' A fresh lease of life could be delivered by a potential acquisition of Daisy, which would add £275m of annual revenue. That makes CWW 'worth considering'.
Most watched Money videos
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Kia's 372-mile compact electric SUV - and it could costs under £30k
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Land Rover unveil newest all-electric Range Rover SUV
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Introducing Britain's new sports car: The electric buggy Callum Skye
- Top Gear takes Jamiroquai's lead singer's Lamborghini for a spin
- Incredibly rare MG Metro 6R4 rally car sells for a record £425,500
- A look inside the new Ineos Quartermaster off-road pickup truck
- Mini Cooper SE: The British icon gets an all-electric makeover
- The consumer champion's guide to getting what you want:...
- How to buy great British shares - at a discount
- Donald Trump sees more than £400m wiped off his fortune
- Eurozone inflation rose to higher-than-expected 2.6% last...
- Vodafone completes sale of its Spanish operations for £4.3bn
- VW Passat is 50 Not Out: We test the new estate-only...
- MARKET REPORT: JD Sports drags its feet as few spend big...
- Great British Energy: What would Labour plan mean for...
- ALEX BRUMMER: Don't trash Britain's energy security
- SHARE OF THE WEEK: Boost for British American Tobacco as...
- Flutter finance chief quits as gambling group lists in...
- Soho House rejects takeover bid that would have seen it...
- INVESTING EXPLAINED: What you need to know about the...
- Savers piled £11.7bn into cash Isas in April - the...
- SMALL CAP MOVERS: Quadrise blooms on client win
- Revolution Bars tells creditors to back restructuring or...
- JD Sports shares plummet as 'challenging market' puts a...
- House prices rose in May, says Nationwide as wage growth...