LONDON -- The FTSE 100
Whichever way it goes, individual shares in the FTSE indexes are reaching new highs every day. Here are three that have just achieved that feat:
That would be a great gain for any company, but this is the eighth biggest member of the FTSE 100, with a market cap of 43 billion pounds.
Dividends are modest at around 3%, but we still have a couple of years of rising earnings forecast.
But earnings are growing and we're seeing a return to dividends -- there's a forecast yield of 3.3% for this year, growing to 3.7% next year, from shares on a forward price-to-earnings ratio of only around 10. We might even be excused for thinking there's a retail sector recovery going on.
Supermarkets have been out of the news of late, but J. Sainsbury
In fact, that high yield suggests there could be more share price appreciation to come, to get back closer to a long-term yield of 3.5% to 4%.
If you want to find good dividend-paying shares, the free Motley Fool report "8 Shares Held By Britain's Super Investor," which takes a look at some of ace investor Neil Woodford's major holdings, might be just what you need. Click here to get your free copy, while it's still available.
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Alan does not own any shares mentioned in this article. The Motley Fool owns shares of Tesco. 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.