Tuesday, February 19, 2008
Barclays: dividend up 10%
Great results from Barclays this morning. Barclays shares had fallen sharply since I started buying last year over fears the bank would lose a lot on sub-prime mortgages.
Well, in their announcement this morning we had this:
The most important measure of company performance, earnings per share, was down slightly to 68.9p from 71.9p. It will be interesting to see how analyst respond to this. Currently the consensus forecast for 2008 is 72.25p, approximately a 5% increase. The problem is the market still thinks there are considerable risks within Barclays. The shares trade for 476.5p, a P/E ratio of 6.60 and a dividend yield of 7.4%. Way too cheap for a business as resilient as Barclays has proved itself.
Worth buying a few more, I think.
The Artful Dodger
Well, in their announcement this morning we had this:
- Barclays Capital profit ahead of record 2006 performance, including £1.6bn of net losses from credit market turbulence
- Tier 1 capital ratio well ahead of target at 7.8%
- Final dividend increased 10% to 22.5p, making 34.0p for the full year (2006: 31.0p)
The most important measure of company performance, earnings per share, was down slightly to 68.9p from 71.9p. It will be interesting to see how analyst respond to this. Currently the consensus forecast for 2008 is 72.25p, approximately a 5% increase. The problem is the market still thinks there are considerable risks within Barclays. The shares trade for 476.5p, a P/E ratio of 6.60 and a dividend yield of 7.4%. Way too cheap for a business as resilient as Barclays has proved itself.
Worth buying a few more, I think.
The Artful Dodger
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