High Yielding Shares based on future forecasts

I thought I would have a look at the high yielding stocks going into the New Year.  This initial analysis covers the FTSE 350 index and is restricted to shares that have greater earnings per share than the dividend they pay out both now and for the forecast earnings in the future.  The thinking here is that the dividend may be more sustainable but there is absolutely no guarantee of this.  The stock market has a way of discounting problems before they are inflicted by the management.  I am hoping that the details will provide readers with food for thought, and, further company research.  As we all know one of the key ingredients in growing the value of an investment portfolio is the receipt of regular dividend payments.  A re-invested return of 5% per year will result in a portfolio doubling in value every 14.5 years.  Just as an aside all my adverts are through google ads, which hopefully provides you with some confidence in their legitimacy.

The details I have included in the analysis are as follows:

Price – This is based on the closing price of the share at the sated date.  Please note the fluctuation of the price both upwards on downwards directly affects the dividend yield of the share.

Earnings per Share / Dividend per Share – Three years of figures are quoted, with at least one or two of these being the latest future analyst estimates.  Care should be taken with any estimates.  They are only guesses and may not transpire into the real figures.

Dividend Cover – This is the number of times earnings per share covers the dividend payment.  A figure of around one means that the dividend may be susceptible to any fall in profit of the company, as it is not generating sufficient funds to cover the payout.  Again care should be taken the closer to one this is.

Potential Dividend Yield – This is the forecast dividend divided by the current price.  A predicted high figure should be treated with caution, and, the share should be subjected to further research regarding its’ financial position.

Ex-dividend dates – This is the month that the share has gone ex-dividend in the past.  Again this may change, so needs to be verified by the company.  You need to own the share before the ex date to benefit from the dividend.  A note of caution is also needed where the dividend is marked as “Special”, as this usually applies to a one off, and, may not be repeated in future years.

So enjoy the data.  My intention as always is to expand the number of shares analysed as time permits.

Ladbrokes	Price	111.00	27/12/14
Year Ending	Dec 2013	Dec 2014	Dec 2015
Earnings Per Share	11.70	10.27	8.42
Dividend Per Share	8.90	8.92	7.88
Dividend Cover	1.3	1.2	1.1
Potential Dividend Yield		8.0%	7.1%
Ex Dividend Month - Interim		September
Ex Dividend Month - Final		March

---

Admiral	Price	1,336.00	27/12/2014
Year Ending	Dec 2013	Dec 2014	Dec 2015
Earnings Per Share	104.60	101.44	91.65
Dividend Per Share	46.90	98.64	90.28
Dividend Cover	2.2	1.0	1.0
Potential Dividend Yield		7.4%	6.8%
Ex Dividend Month - Interim		September
Ex Dividend Month - Special		September

---

Berkeley Group	Price	2,501.00	27/12/14
Year Ending	Apr 2014	Apr 2015	Apr 2016
Earnings Per Share	221.80	236.21	260.31
Dividend Per Share	180.00	183.12	160.06
Dividend Cover	1.2	1.3	1.6
Potential Dividend Yield		7.3%	6.4%
Ex Dividend Month - Interim		December
Ex Dividend Month - Final		August

---

Morrisons	Price	181.70	27/12/14
Year Ending	Feb 2014	Jan 2015	Jan 2016
Earnings Per Share	25.18	12.47	13.75
Dividend Per Share	13.00	12.35	10.70
Dividend Cover	1.9	1.0	1.3
Potential Dividend Yield		6.8%	5.9%
Ex Dividend Month - Interim		October
Ex Dividend Month - Final		May

---

Centrica	Price	284.70	27/12/14
Year Ending	Dec 2013	Dec 2014	Dec 2015
Earnings Per Share	26.60	19.50	21.01
Dividend Per Share	17.00	17.53	17.44
Dividend Cover	1.6	1.1	1.2
Potential Dividend Yield		6.2%	6.1%
Ex Dividend Month - Interim		September
Ex Dividend Month - Final		April