Much has changed since the credit-crunch days of 2008 and if even we are only seeing a glimmer, rather than a full light, at the end of the recession-tunnel, things are certainly getting better. A look at the dividends being offered by some companies is surely a barometer of this.
Insurance companies a faring well, with Aviva offering a prospective dividend yield of 7.1%, Legal & General offering 5.9% and Standard Life topping them at 7.6%. And it’s not just the insurance industry that is paying out. Mobile communications giant Vodafone is offering a 5.9% yield and energy supplier National Grid is boasting 6.8%. I could go on.
The UK market is generally being surprised by better than expected results from leaner companies emboldened by new prospects after the dark days of 2009/9. And emerging markets too – though they come with a risk element - are offering new opportunities for investors with many analysts believe that a turning point has been reached. And with share prices often low, there a still a viable entry point for many would-be investors to this type if investment.
Commercial property has also seen growth this year. SWIP UK Real Estate is up 5% in the last months and Aberdeen Property Share is up 4.8%, according to Financial Express. Some commentators suggesting a possible growth of 8% p.a in the years to 2015, meaning that this is a sector that is attracting significantly more interest than it was even a year ago.
Despite recent stock market wobbles, there are some beacons of success in our economy. As we emerge from the darker days, wise investors will undoubtedly be talking to their Independent Financial Advisors to re-assess their portfolios to take advantage of the new opportunities.
(Dividend figures correct as of August 2011. Source: The Sunday Times 7/8/11)
You can find out more by contacting John Davies: jdavies@cliftonnash.co.uk
