J Sainsbury Lifts Dividend by 7%

LONDON -- The shares of J Sainsbury (LSE: SBRY.L  ) (NASDAQOTH: JSAIY) have slipped 2.25% in London trading despite the supermarket revealing a 7% lift to its half-year dividend.

The payout news came alongside interim results showing that underlying profit at the FTSE 100 member was up 5% to 373 million pounds. Sainsbury said its total sales advanced 4% to 13.4 billion pounds during the six months to September, with like-for-like sales improving 1.7% to notch up 31 consecutive quarters of underlying sales growth. The supermarket also claimed it had outperformed its rivals during the half year and that its 16.7% market share was now the firm's highest for nearly a decade.

The group's own labels helped the performance, with the "Taste the Difference" food range advancing its sales by 10% and the Tu clothing range scoring its best sales day ever.

David Tyler, the chairman of Sainsbury, said, "Sainsbury's has made a strong start to the year, delivering continued outperformance in what has remained a challenging market."

Justin King, the group's chief executive, added: "We continue to succeed by remaining focused on delivering quality products, best-in-class service and value for our customers, without compromise. ... Our long-standing consistent strategy, combined with our customer insight and strong value-driven culture, will continue to deliver for customers, colleagues and shareholders."

Prior to today, City experts reckoned current-year earnings could top 29 pence per share and that its 12-month dividend may be nearly 17 pence per share. Such projections suggest the shares trade at less than 12 times possible profit and offer a potential income of almost 5%.

Supported by today's dividend lift, Sainsbury looks to be one of a number of FTSE large caps that provide a payout income well ahead of what you can expect to receive from a standard savings account. If you are seeking other high-dividend possibilities, this special free report reviews the favorite income stocks held by Neil Woodford -- the City fund manager who thrashed the FTSE 100 during the 15 years to 2011 by favoring dividend-paying blue chips. Just click here to download these Neil Woodford share ideas today.

Maynard does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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.

DocumentId: 2112392, ~/Articles/ArticleHandler.aspx, 7/30/2014 9:20:52 PM

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...


Advertisement