Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineBumper dividend for U and I
U and I (UAI) 219p
Gain to date: 9.5%
Original entry price: Buy at 200p, 11 January 2018
Property regeneration specialist U and I (UAI) is beginning to win over the market thanks to an encouraging set of full year results. As such the shares are now trading nearly 10% above our entry point in January.
The company has a portfolio of assets in London, Manchester and Dublin. It reported a record profit for the 12 months to 28 February
and this helped underpin a more than doubling of the total annual dividend to 17.9p, boosted by a special dividend of 12p.
The company maintained future guidance which is based on existing projects and could be improved by new project wins. There is a pipeline of potential developments worth a gross £7bn.
In a recent research note on the stock, newly-appointed joint house broker Liberum issued a price target of 280p. Analyst David Brockton commented: ‘The combination of visible attractive returns and an unjustified valuation discount enhances the share price upside.’
Based on his forecasts the shares trade on a 28% discount to the 305.9p net asset value predicted for the year ending February 2019, and yield 6.4%.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
