This suggests to me that now might be a better time to be quitting buy-to-let than starting out. I’m certainly much more interested in buying listed property stocks today than I am in buying houses to rent.

This FTSE 250 REIT yields 10%

While house prices have been buoyant, retail property has fallen in price. One REIT (Real Estate Investment Trust) that’s been hit hard by these falls is FTSE 250 firm NewRiver REIT (LSE: NRR).

Its share price has fallen by about 40% from 2017 highs but so far the trust’s earnings and dividend payments have continued to rise. As a result, the stock now offers a 10% dividend yield.

NewRiver specialises in property such as convenience stores, discount retailers, health and beauty and community pubs. The company says this focus on value and frequent everyday spending means its performance has remained strong.

The figures seem to support this claim. NewRiver’s net asset value at the end of September was 283p, only 3% lower than six months previously. Occupancy levels and rents were broadly unchanged between March and December last year.

Still pricier than some rivals

This could be a buying opportunity, but I do have one concern.

NewRiver shares currently trade at a 25% discount to their net asset value of 283p. In contrast, FTSE 100 landlord British Land — which owns prime retail and London office property — boasts a discount of about 40%.

Are British Land’s properties really more overvalued than those of NewRiver? I don’t know. For now, I’m going to leave NewRiver on my watch list and await further news.

I’d like to own this FTSE 100 stock

One property-focused company I would like to own is Whitbread (LSE: WTB), which owns Premier Inn. Since selling Costa Coffee to Coca-Cola for £3.9bn, the budget hotel has become Whitbread’s only business.

The shares have risen by about 20% since the deal was announced last August. As I said in December, I think this surge higher may have gone too far. Last week’s trading update seemed to support this view.

Like-for-like revenue at Premier Inn fell by 0.7% during the nine months to 29 November. The only growth came from new openings in the UK and overseas. The company also warned of a “cautious” outlook on the UK market and said that profits were expected to be flat during the 2019/20 year, which starts in March.

One reason for this is that the company is ramping up spending on new hotels in the UK, Germany and Middle East. Although I have no doubt that Premier Inn is a good business, flat profits and rising spending make me cautious.

Whitbread shares currently trade on about 21 times 2019/20 forecast earnings, with a dividend yield of just 2.1%. For me, that’s a little too expensive. I intend to wait for a better buying opportunity.

The post Should you quit buy-to-let and collect 10% from this FTSE 250 dividend stock? appeared first on The Motley Fool UK.

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Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended British Land Co. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Impressive dividend growth

NewRiver REIT (LSE: NRR) is a property investor, which owns and manages a mix of shopping centres, retail parks, high street properties and leisure assets. It focuses on commercial property which have convenience or community appeal, with a preference on higher-yielding, but low-risk assets.

The REIT has been an impressive dividend grower in recent years, with regular quarterly payouts rising by a compound annual growth rate (CAGR) of 7.3% over the past three years. With the company expected to pay a total dividend of 21p this year, NewRiver has an expected dividend yield of 6.2% at its current share price of 338p.

NewRiver’s dividend growth track record is certainly attractive, but the stock has been under pressure from recent weak investor sentiment towards the UK commercial property sector. With the uncertain macro backdrop, there are increasing concerns about the company’s ability to deliver positive valuation growth and growing rental income in the medium term.

Rents are up

On the upside though, rents and occupancy levels have so far held up well, with its recent half-year results showing the occupancy level stable at 97% and average retail rent up 3% to £12.82 per square foot. It also reported an 8% increase in funds from operations (FFO), although following the issue of 67m new ordinary shares earlier this year, its FFO per share fell 5% to 10p.

NewRiver currently trades at a 14% premium to its net asset value (NAV), but I reckon there’s still value in its shares. It has tempting income and growth appeal, with City analysts forecasting 4% dividend growth over the next two years. This should mean the REIT’s dividend growth story is not over yet.

7% yield

Meanwhile, in the housebuilding sector, Crest Nicholson (LSE: CRST) is one of the highest yielding stocks in the sector, with a prospective dividend yield of 7% next year.

The South of England housebuilder is often overlooked by its larger rivals, but the company deserves more attention than it gets because of its attractive pipeline of new developments. The company has a promising short-cycle land pipeline and is aiming to deliver 4,000 homes and generate £1.4bn sales by 2019, up from less than 3,000 homes and around £1bn in sales currently.

Looking forward, City analysts expect underlying earnings for this year to climb just 5%, although it is more sanguine for 2018, as it expects earnings growth to pick up to 11%. This may still be an overly cautious outlook given the recent momentum in its forward sales rate and the continued growth in average selling prices. As such, it opens up the possibility of an earnings surprise in the coming year.

But even on those less rosy estimates, Crest Nicholson is attractively valued, with shares trading at a forward P/E of just 7.3, against the sector average of 9.9.

The post This 6%+ yielder still looks like a great dividend stock appeared first on The Motley Fool UK.

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Jack Tang has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

IG offers spread betting and contracts for difference (CFD). These allow investors to trade contracts such as the FTSE 100 and exchange rates with only a small ‘margin’ payment. This is often less than 1% of the value of the underlying derivatives contracts.

The concern among regulators is that retail traders don’t always understand the size of the losses they may face.

What’s changed?

In December 2016, UK regulator the FCA announced plans for restrictions on leverage for retail clients. This caused a major share price crash for IG and its sector rivals. Strong recent trading meant that the shares had largely recovered before today, but the ESMA proposals are tougher than those from the FCA.

ESMA is suggesting a ban on certain binary products and leverage limits of between five and 30 times, compared to the FCA’s suggestion of 25 to 50 times. So the potential impact could be greater than expected.

A buying opportunity?

IG Group is the market leader in this sector in the UK. So it would be my choice as a potential recovery buy, following today’s fall.

In a statement issued today, the company says it is taking steps to reclassify as many of its investors as possible as professional, rather than retail investors. Professionals aren’t expected to be subject to the same restrictions and IG believes half of its clients, in terms of revenue, could qualify as professional.

The firm says the potential impact is “difficult to predict” but believes the impact of the ESMA plans on historic revenue would have been “less than 10%”. What the firm doesn’t say is how much of an effect this would have on the firm’s historic profits.

However, it is already taking steps to diversify and restrict the sales of riskier products. After today’s fall, the shares trade on a forecast P/E of 14 and a prospective yield of 5.1%. Given the group’s strong balance sheet and market-leading position, I’d rate the stock as a buy.

One Woodford stock I’d consider

Retail-focused property group NewRiver REIT (LSE: NRR) has seen the value of its stock fall over the autumn. But the shares rebounded sharply after recent half-year results were released, suggesting the sell-off may have gone too far.

The Neil Woodford-backed firm said that funds from operations rose by 8% to £26.5m during H1. Occupancy remains high at 97%, and like-for-like rental income rose by 0.9%, excluding losses resulting from the BHS administration. Including the impact of this setback, like-for-like rents fell by 0.4%, which seems acceptable to me.

The group has recently completed a refinancing and fundraising which should reduce debt costs and provide cash for growth. Loan-to-value is just 25% and the company says it will remain below 40% as fresh cash is deployed.

‘Under the radar’ income?

For shareholders, NewRiver stock offers an attractive forward yield of 6.2%.

Although the stock does trade at a 15% premium to its book value of 297p — reducing downside protection — I believe it remains worth considering as an income buy.

The post Is IG Group Holdings plc a falling knife to catch after sinking 10% today? appeared first on The Motley Fool UK.

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Roland Head has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

NewRiver REIT

NewRiver (LSE: NRR) is a property investor, asset manager and developer that specialises in the UK retail sector. Its mission is to own and operate top quality retail properties that provide an attractive environment for shoppers and generate a high, sustainable income. Fund manager Neil Woodford is an admirer of the stock, as it was the 11th largest holding in his Equity Income fund at the end of October.

The investment trust has been an absolute cash cow for investors recently. In the last two years, shareholders have received dividends of 18.5p and 20p per share. At the current share price of 330p, that equates to yields of 5.6% and 6%. Last year, the property manager even paid a special dividend of 3p, meaning that investors received a total yield of 6.9%.

NewRiver released its half-year results this morning, and the good news for income investors is that the dividend has been increased further. Funds from operations (FFO) rose 8%, enabling a half-year dividend increase of 5% to 10.5p. The company stated that the third quarter dividend would also be increased 5% to 5.25p. Chairman Paul Roy commented: “I am pleased to report another successful and highly active period for NewRiver across all aspects of the business, as we continue to build a strong platform to deliver growing cash returns.”

Investors should note that the investment case isn’t risk-free. The company reported a net asset value (NAV) per share of 297p today, yet the share price is currently 330p. That means the shares trade at an 11% premium to the NAV, which is not ideal. However, with City analysts expecting a full-year dividend of 21p this year, and 21.8p next year, there’s potential for some big cash payouts here.

Renewables Infrastructure Group

Another dividend investment trust rewarding investors with sizeable cash returns, is the Renewables Infrastructure Group (LSE: TRIG). This trust invests in a diversified portfolio of renewable energy infrastructure assets, such as wind farms and solar assets in the UK and Northern Europe. As such, it could be a good option for income investors who prefer to invest on an ethical basis. It aims to provide investors with long-term stable dividends, whilst preserving the capital value of the portfolio.

Over the last three years, the trust has paid dividends of 6.1p, 6.2p and 6.3p per share. Last year’s payout is a yield of 5.9% at the current share price. City analysts predict a payout of 6.4p this year and 6.6p next year, which would tip the yield over 6%.

Another advantage of this trust, is that like NewRiver, it pays its dividends quarterly. That’s handy for income investors who depend on regular dividends for their living expenses. At 106p, it also trades at a premium to its NAV, which was 100.6p on 18 August, however, I believe the trust offers potential as part of a diversified income portfolio.

The post Looking for 6% yields? Check out these dividend investment trusts appeared first on The Motley Fool UK.

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Edward Sheldon owns shares in Royal Dutch Shell and GlaxoSmithKline. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended HSBC Holdings and Royal Dutch Shell B. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Convenience

NewRiver REIT (LSE: NRR) is a property investor, which owns and manages a mix of shopping centres, retail parks, high street properties and leisure assets. It has a convenience and community-led approach, with a focus on high-yielding-but-low-risk retail properties.

NewRiver’s growth track record is certainly attractive — dividends per share have grown at a compound annual growth rate of 9% over the past four years, while funds from operations (FFO) per share have increased by 11% annually over the same period.

The company released its Q1 trading update this morning which continued to highlight the progress made with its development pipeline. Planning consents for a 236,000 sq ft mixed-use development in Cowley and 38,000 sq ft hotel in Romford had been obtained, while it made further progress made on rolling out its convenience store programme.

Despite near-term economic headwinds, I reckon the REIT will continue to perform well for its shareholders. After all, CEO David Lockhart likes to remind us that the business was founded in 2009 during a severe recession, and in spite of this, it has grown into a FTSE 250 entity in less than eight years. Also, rents and occupancy levels have so far held up well, with average rent increasing to £12.63 per sq ft (up from £12.45 in March) and the retail occupancy rate holding steady at 97%.

With the shares having delivered capital gains of 12% over the past 52 weeks, NewRiver currently trades at a 13% premium to its net asset value (NAV). To most investors that may seem rather pricey, as the UK property sector as a whole trades at a slight discount, but I can see why the shares may justify a premium.

NewRiver has tempting income and growth appeal, with shares yielding 5.9% and growth underpinned by management’s strong experience and track record.

Opportunistic

But for those investors looking for a less expensive play in the sector, Regional REIT (LSE: RGL) may be the right property stock for you.

It is an opportunistic investor in industrial and office assets located in regional centres outside of London. The company may seem like a somewhat more risky play on the property sector, as it focuses on high-yielding, undervalued properties with under-appreciated recovery prospects.

But with this strategy also comes potentially greater returns — Regional REIT aims to deliver an attractive total return of around 10%-15% annually. So far it is doing well. Since the start of the year, it has secured a number of re-gears, achieving an average uplift of 2.8% on headline rents.

And with its shares trading at a discount of 2% to its NAV and yielding 7.3%, Regional REIT seems to offer a potent mix of a high yield and an enticing valuation.

The post 2 massive yielders you probably haven’t considered appeared first on The Motley Fool UK.

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Jack Tang has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Improving performance

Reporting on Thursday was ingredients specialist Tate & Lyle (LSE: TATE). The company’s full-year results showed progress has been made, with its adjusted pre-tax profit figure moving 20% higher. Both of its key divisions delivered good growth rates, with Bulk Ingredients increasing its adjusted operating profit by 32%. It was buoyed by strong commercial and manufacturing performance. Similarly, Speciality Food Ingredients recorded a rise in adjusted operating profit of 5%, with margin expansion being a positive feature of the year.

In terms of its income prospects, Tate & Lyle’s dividend yield of 3.6% is relatively attractive. Although 20 basis points lower than the FTSE 100’s yield, it is nevertheless relatively well-covered by dividends. In the financial year just ended, dividends were covered 1.9 times by profit. This indicates that a higher dividend could be warranted in future without putting the company’s growth outlook or financial stability under pressure.

Despite this, Tate & Lyle seems to be relatively overvalued at the present time. It trades on a price-to-earnings (P/E) ratio of 14.1 and yet is forecast to record a rise in its bottom line of just 4% in each of the next two financial years. Therefore, while it does have some income appeal for the long run, its share price growth could lag the wider index over the medium term.

High valuation

While the property sector faces a relatively uncertain outlook, property investment and development company Newriver Reit (LSE: NRR) appears to have a rather generous valuation. For example, it trades on a P/E ratio of 15.5 and yet is expected to report a fall in earnings of 5% in the current year. Certainly, its price-to-book (P/B) ratio of 1.2 may not be exceptionally high. However, at the present time a number of property-focused stocks offer either lower valuations or superior growth outlooks for the medium term.

Of course, Newriver Reit remains a relatively attractive income stock. It currently has a dividend yield of 6.2%. While dividends are only just covered by profit, property stocks do not generally require the same level of reinvestment for future growth as stocks in other sectors. Therefore, while dividend growth may be limited because of a potentially challenging outlook for the sector, the company’s current shareholder payout may prove to be sustainable.

However, with superior options within the same sector, there may be better opportunities for investors to generate a high return in the long run.

The post Are these income stocks getting too expensive? appeared first on The Motley Fool UK.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Today I’m looking at three super-high-income stocks Woodford has been buying since 12 April. I agree with him that these stocks are attractive investments at current prices.

The REIT stuff

Generally, property isn’t an asset class Woodford’s particularly interested in. However, he’s been impressed by the excellent returns delivered by retail specialist NewRiver REIT (LSE: NRR) and sees potential for “a very attractive income stream … as well as long-term capital growth.”

He participated in placings at 300p and 325p in June and December 2015 and added further to his holding in the market sell-off following last year’s Brexit vote. These purchases were for his Equity Income Fund but I suspect the 3.4m shares (£11.5m) he picked up last week were for his new Income Focus Fund. If so, the NewRiver holding would represent a bit over 2% of the portfolio.

This FTSE 250 firm delivered a 20p dividend for its last financial year and analysts are forecasting 21.5p for the current year. At today’s share price of 337p, you’re looking at a very juicy prospective yield of 6.4%.

Buy cheaper than Woodford

Non-Standard Finance (LSE: NSF) is another stock Woodford first bought for his Equity Income Fund. The company offers financial services to the significant part of the UK population that is unable to access mainstream products.

Woodford participated in the company’s IPO at 100p in February 2015 and also in a placing at 85p to fund an acquisition a year later. If his recent purchase of 5.2m shares (£3.14m) is for his new Income Focus Fund, Non-Standard would represent about 0.6% of the portfolio.

The company paid a small maiden dividend last year but the policy is to move to a payout of 50% of normalised annual post-tax earnings. With the shares trading at 60.5p today (a significant discount to Woodford’s earlier buy prices), analysts’ forecasts imply a yield of 4.6% this year, accelerating to 6.4% next year.

New kid on the block

AIM-listed Morses Club (LSE: MCL) is in the same subprime-lending sector as Non-Standard Finance but appears to be a new holding. Woodford disclosed an interest in almost 9.7m shares (£12.3m) last week, which would represent 2.2% of the Income Focus Fund portfolio, although the shares may also have been bought for the Equity Income Fund.

Either way, Morses is another appealing dividend stock. A 6.3p payout for the year ended 28 February is expected when it releases its annual results next Thursday, followed by a rise to 6.9p. This gives a yield of 4.9% increasing to 5.4% at a current share price of 127.5p.

NewRiver, Non-Standard and Morses all look attractive prospects to me, particularly for investors seeking a high income in retirement. However like Woodford, I see these as smaller holdings in a portfolio to sit alongside a core of FTSE 100 blue chips.

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G A Chester has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Today I’m going to look at three stocks from the Woodford Equity Income Fund, starting with a £500m mid-cap you may not be familiar with.

Serious cash generation

The Woodford Equity Income Fund is the second-largest shareholder in AIM-listed accident management company Redde (LSE: REDD). Mr Woodford’s flagship fund has a 22.94% stake that’s worth £115m.

Redde’s share price has risen by 651% over the last five years, creating a nice capital gain for early investors. But the secret to the firm’s present-day appeal is lies in its cash generation. Almost all of the firm’s profits are converted into free cash flow and paid out as dividends. For example, during the final six months of 2016, the firm’s post-tax profit of £15.6m resulted in dividend payments of £15.0m.

Redde’s earnings per share have risen by about 40% since 2014. The business doesn’t appear to require much in the way of capital expenditure and most assets are leased. The stock currently trades on a forecast P/E of 16, with a prospective yield of 6.3%. Although this sector is traditionally a risky place to invest, Redde does appear to be the pick of the bunch.

Pharma boss

Mr Woodford’s appetite for pharmaceutical stocks is well documented. I share his views on the long-term growth potential of GlaxoSmithKline, which I hold in my own income portfolio. Glaxo shares currently trade on a 2016 forecast P/E of 15.2, with a prospective yield of 4.7%.

However, while this seems affordable, I don’t think Glaxo is especially cheap at the moment. In my view the group’s net debt of £13.8bn needs to be taken into consideration. This gives Glaxo an enterprise value (market cap plus net debt) of £100.6bn. According to the data service I use, Glaxo has an EV/EBITDA ratio of 22.4. This is quite expensive, and is certainly much higher than the equivalent figure of 12 for AstraZeneca.

I believe that GlaxoSmithKline is likely to deliver attractive long-term returns from current levels, but short-term progress could be limited.

A rare 6% property yield

Property stock NewRiver REIT (LSE: NRR) owns a mix of shopping centres, warehouses, pubs and other assets. The Woodford Equity Income Fund has an 18% stake in NewRiver that’s worth £145m. This suggests to me that Mr Woodford is fairly comfortable with the group’s accounts and sees further long-term upside from the stock.

NewRiver’s income credentials are certainly attractive. The stock offers a forecast yield of 6.0% for the current year. That’s well above average for the property sector. Although the current price/book ratio of 1.2 doesn’t provide much protection if property prices fall, NewRiver’s finances seem sound enough to me.

The group has an average unexpired lease term of 6.8 years and a 96% occupancy rate. Debt levels are acceptable to me, based on September’s loan-to-value ratio of 38%.

I’d rather buy NewRiver shares at a discount to their book value. But I can see the stock’s income appeal and would consider buying at current levels.

The post 3 Neil Woodford stocks I’d buy in March appeared first on The Motley Fool UK.

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Roland Head owns shares of GlaxoSmithKline. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended AstraZeneca. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

A long-term 6% yield?

Insurance giant Aviva (LSE: AV) has made good progress with its turnaround over the last three years. Yet despite the dividend being rebuilt to 20.8p from its 2013 low of 15p per share, most of the share price gains seen since that time have been reversed.

Aviva shares currently trade on a 2016 forecast P/E of 7.8. This year’s expected dividend yield of 6% should be covered twice by earnings per share. Analysts expect further earnings and dividend growth in 2017. In my view, Aviva remains a buy.

Is this market recovering?

Home and motor insurers like Direct Line Insurance Group (LSE: DLG) have been suffering from intense price competition over the last few years. But there are signs that market conditions are improving.

Direct Line’s gross written premiums for on-going operations rose by 4.2% during the first quarter. This compares to a 0.9% fall during the same period last year. City analysts have remained confident in the outlook for Direct Line, despite Brexit. The shares currently trade on 12 times 2016 forecast earnings.

Forecasts suggest Direct Line will pay ordinary, plus special, dividends of 24.8p per share this year, giving a whopping forecast yield of 7.3%. I believe Direct Line may be worth a closer look.

Profit from payment tech

Shares of corner shop bill payment firm PayPoint (LSE: PAY) has risen by 75% over the last five years. The dividend has risen by 60% over the same period, during which PayPoint has retained a net cash balance.

Pay point’s strong record of growth and cash generation suggests to me that this stock could offer decent value. While the 2016/17 forecast P/E of 15 isn’t an obvious bargain, the forecast yield of 5.3% is attractive and further growth is possible.

A big income from property?

Shares of retail property investment trust NewRiver Retail (LSE: NRR) have fallen by 10% so far this year. This has left the shares trading broadly in line with their net asset value. That’s not especially cheap for a REIT, but NewRiver have a couple of advantages. Gearing is much lower than the sector average, with a loan-to-value ratio of just 27%. A level of 35%-40% is more typical.

There’s also an above-average forecast dividend yield of 6.5%. NewRiver is planning to move from AIM to the LSE main market later this year. This should put the stock into the FTSE 250 and could trigger a round of institutional buying.

An oil recovery play

Oil services firm John Wood Group (LSE: WG) has been one of the strongest performers in its sector during the oil market downturn. The firm has proved the value of keeping debt levels low and focusing ruthlessly on cash generation.

Although Wood Group’s forecast yield of 3.7% isn’t as high as some of the others I’ve mentioned in this piece, the company expects to increase its well-covered payout by “a double-digit percentage for 2016”.

Profit margins are likely to remain lower than in the past, but companies like Wood Group remain indispensable to oil producers. On 14 times 2016 forecast earnings, I think the shares look a reasonable buy.

The post 5 big dividend stocks too good to miss appeared first on The Motley Fool UK.

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Roland Head owns shares of Aviva. The Motley Fool UK owns shares of PayPoint. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

In Continental Europe, Headlam benefitted from a positive currency translation. This meant that combined revenues rose by 8.9% and while this is a positive, weak sterling also produces a negative for the company. That’s because it causes the cost to Headlam of residential floor coverings to increase by an average of 6%. They’re imported from Belgium and the Netherlands and it means that Headlam will increase its selling prices by a similar amount over the next month.

Looking ahead, Headlam is forecast to increase its bottom line by 5% next year and with it trading on a price-to-earnings (P/E) ratio of 12.9, it seems to be fairly priced. Its yield of 4.8% from a dividend that’s covered over 1.5 times by profit remains its big draw, meaning it holds appeal for income-seeking investors.

Strong start

Also reporting today was NewRiver Retail (LSE: NRR), with the real estate investment trust (REIT) recording a strong start to the year. Its first quarter was busy with it improving its occupancy to 97% following 90 leasing events having been completed during the quarter. Furthermore, lease length and footfall were also improved, with NewRiver having made good progress on its Co-operative convenience store development programme.

The strong start to the year has allowed NewRiver to increase dividends by 11% to 5p per share. This puts the company on a yield of 6.8%, which is clearly among the higher yielding stocks on the UK index. As such, it has appeal for income-seeking investors at a time when interest rate cuts are being mooted.

However, with dividends being covered just 1.06 times by profit and the outlook for the UK commercial property market being uncertain to say the least, it may be prudent to await further news flow before buying a slice of NewRiver Retail.

Rising revenue

Meanwhile, Science Group (LSE: SAG) also reported today. The science and technology consulting company’s first-half performance was in line with management expectations, with revenue rising by 25.5% to £17.7m and adjusted operating profit being marginally higher at £2.5m. Encouragingly, Science Group’s operating cash flow remained strong, rising to £5.3m from £3.3m in the same period of the previous year, thanks in part to a VAT rebate of £1.5m in relation to a property purchase in 2015.

Looking ahead, Science Group is expected to increase its earnings by 29% this year and by a further 16% next year. This puts it on a price-to-earnings growth (PEG) ratio of just 0.8, which indicates that now could be a good time to buy it.

The post Will Science Group plc, NewRiver Retail Limited and Headlam Group plc soar after today’s updates? appeared first on The Motley Fool UK.

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Peter Stephens owns shares of Headlam Group. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.