Victrex Lifts Dividend By 15% to Yield 2.3%

LONDON -- The shares of Victrex (LSE: VCT  ) advanced 5% to 1,708 pence during early London trade this morning after the specialist plastics developer revealed a marginal improvement in half-yearly profits to £35.1 million

Victrex, which produces a virtually unique highly durable plastic called "PEEK", said European sales volumes were 8% ahead of last year.

The company benefited from a 5% improvement in sales of its light-weight PEEK components to the automotive and aviation industries. However, revenues from Victrex's "Invibio" medical division dropped 5% for the period, due to customer destocking in the spinal business.

Victrex confirmed it remains debt free, and by April net cash on the balance sheet had grown 28% to reach £74 million.

Chairman Anita Frew commented: "The Group's strong gross margin has been maintained and we have continued to invest in resources to drive key growth programmes. Cash generation remains strong, funding the PEEK capacity expansion project, which is on track, and underpinning our progressive dividend policy, which is reflected in a 15% increase in the interim dividend."

With a market cap of £1.4 billion, Victrex's shares trade at 20 times expected earnings, and now offer a trailing dividend yield of 2.3%.

Of course, whether that valuation, today's update and the future prospects for the polymer industry all combine to make shares of Victrex a buy remains your decision.

However, if you're looking for a higher-yielding investment, why not take a look at "The Motley Fool's Top Income Stock for 2013"?

The Fool's choice recently revealed its dividend would increase "at least in line with the rate of U.K. inflation", and provides a market-beating 5% yield.

Just click here to download your free report!

link</a


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2455373, ~/Articles/ArticleHandler.aspx, 11/28/2014 1:01:27 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 17,827.75 12.81 0.07%
S&P 500 2,072.83 5.80 0.28%
NASD 4,787.32 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/27/2014 11:35 AM
VCT $1817.00 Up +33.00 +1.85%
Victrex CAPS Rating: No stars

Advertisement