3 More FTSE 100 Shares For The Week Ahead: Standard Chartered PLC, Meggitt plc And Old Mutual plc

Interims from Standard Chartered PLC (LON: STAN), Meggitt plc (LON: MGGT) and Old Mutual plc (LON: OML) are coming.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

We’ve already taken a quick look at three FTSE 100 companies set to deliver first-half results next week, and there are plenty more to come from a number of firms in the top-tier index which end their financial years on 31 December. In particular, the financial sectors are busy next week, but there are others as well. Here are three companies st to bring us half-time news.

Standard Chartered, Tuesday 6 August

Shares in Standard Chartered (LSE: STAN) (NASDAQOTH: SCBFF.US), the bank focused on Asia and emerging markets, have had a rocky ride this year. They climbed to over 1,800p in March, but have since slid back to 1,538p today — just a few percent up over the past 12 months.

First-half results should be with us next Tuesday, and judging by June’s pre-close update they should be pretty solid. With chief executive Peter Sands saying that the bank had put in a better performance in the second half than in Q1, we were told that “income for the first six months of 2013 is expected to grow at a mid single digit rate“.

City analysts translate that into a 3% growth in earnings per share (EPS) for the full year to December 2013, putting the shares on a P/E of just over 10. There’s also a well-covered dividend yield of around 4% predicted, and Standard Chartered does have a good track record of lifting its payout year-on-year.

Meggitt, Tuesday 6 August

Tuesday is also set to bring us first-half figures from aerospace and defence engineer Meggitt (LSE: MGGT), and it’s a sector that has enjoyed something of a resurgence in 2013. The Meggitt share price itself is up nearly 45% over the past 12 months, to 555p today, with pretty much all of that coming since the start of January.

An update in May was pretty positive, with chairman Sir Colin Terry telling the company’s AGM that “Proforma revenues grew modestly in the first quarter of 2013, and we continue to expect mid-single-digit revenue growth for the year“. That comes after Meggitt had put in double-digit EPS growth for each of the previous three years, with only a small 4% fall in 2009. The dividend over the past few years has been pretty reliable too, being held unchanged for 2009 and raised every year since.

It all bodes well for the full year, with forecasts indicating a 4% rise in EPS and putting the shares on a P/E of just under 15 — that’s a fraction ahead of the FTSE average of 14, but it should fall below that for 2014. The dividend is forecast to grow by about 6%, but should only yield around 2.3%.

Old Mutual, Wednesday 7 August

It’s back to finance for Wednesday, with interim results from insurer and investment manager Old Mutual (LSE: OML) expected. Old Mutual shares have beaten the FTSE over the past 12 months, gaining approximately 23% to today’s 196p. Earnings per share have been erratic during the recession, and the dividend was slashed in 2009. But since then the annual payout has been creeping back up, and last year’s 7p per share represented a respectable yield of 3.9%.

There’s another rise in the dividend forecast for the year to December 2013, and on today’s price it would yield 4.3%. That’s beaten by most of Old Mutual’s insurance rivals, but the shares are on a relatively low P/E of 10 — and that would drop to 9 for 2014 should forecasts prove accurate, with the dividend yield boosted to 4.8%.

In May the firm told us that funds under management were up 7% to £288.4bn, with net inflow of £3.9bn and gross sales up 14%. We also heard that expansion in Africa is going well, with business strengthening in Nigeria and Mozambique.

Finally, dividends can add nicely to your investment returns — they can be spent or reinvested according to your needs. Whether investing for income or growth, good old cash is always welcome.

And that’s why I recommend the BRAND-NEW Fool report, “The Motley Fool’s Top Income Share For 2013“, in which our top analysts identify a share that they believe will provide handsome dividend income for years to come.

But it will only be available for a limited period, so click here to get your copy today.

> Alan does not own any shares mentioned in this article.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

artificial intelligence investing algorithms
Investing Articles

Should I buy Tesla stock for its ‘unused computing power’ and not the EVs?

At 71 times forward earnings, Tesla stock's valued like a technology or AI company. So why is this, and should…

Read more »

Man smiling and working on laptop
Investing Articles

These FTSE 100 shares could rise 15% to 36% in the next year!

Is the market underestimating these top FTSE 100 stocks? Royston Wild explains why analysts expect these two blue-chip shares to…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Should I be watching the Greatland Gold (LSE: GGP) share price?

Recent rallies in valuable metal prices has boosted the Greatland Gold share price, but is there still an opportunity for…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

The abrdn share price is down 23% in the last year, should I buy?

Asset management firms have had a rough time lately, but with the abrdn share price down heavily, is now the…

Read more »

Hand of a mature man opening a safety deposit box.
Investing Articles

If I’d invested £5k in red hot BAE Systems shares 5 years ago here’s what I’d have today

BAE Systems shares have smashed the FTSE 100 for years and Harvey Jones is keen to buy more as they…

Read more »

Investing Articles

How I’d aim to earn £16,100 in passive income a year by investing £20k in a Stocks and Shares ISA

Harvey Jones is building a portfolio of high-yielding FTSE 100 dividend stocks that should give him a high and rising…

Read more »

Investing Articles

Down 8% in a month! The BP share price is screaming ‘buy, buy, buy’ at me right now 

When crude oil falls, the BP share price invariably follows. Harvey Jones is wondering whether this is the right point…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

Could the 9.8% M&G dividend yield get even bigger?

Christopher Ruane reckons that, although the M&G dividend yield is already close to a double-digit percentage, it could get better…

Read more »