LONDON -- The FTSE 100
If we add in the FTSE's trailing dividend yield of around 3.5%, that would be a great annual performance at any time -- and the fact that it has happened during a year of zero economic growth only adds to the feeling that the panic sell-off of shares was overdone.
Today I thought I'd have a look at some constituents of the FTSE indexes that have outstripped even that strong performance but that I think still have more of a story to tell. Here are three shares that have soared this year.
Dixons, like others, was slow to change and embrace modern multichannel retailing, and was far too inefficient in its business. But annual results in June showed strong signs that the firm's turnaround strategy is meeting with success, as it said its first priority is to "Drive a successful and sustainable business model in a multi-channel world." Sales and profits are creeping back, debt is being slashed, and we're seeing more Internet-savvy efficiency.
The shares are now at a forward price-to-earnings ratio of around 12 for April 2013, falling to 8 the following year. Dixons could well be back into sustainable profit territory again.
High-tech stars generally mature in one of several ways, either by growing organically and rising to the top of their sectors, like ARM Holdings
While Dixons might have struggled to join the digital revolution, Perform is an example of a company exploiting opportunities that didn't exist without it. Perform works in the business of digital sports media, and provides platforms for advertising and for the commercialization of sporting events.
And though it has only been around for a couple of years and has already enjoyed such a meteoric rise, forecasts still suggest a PEG ratio of 0.5 this year and 0.4 the next -- classic growth shares are generally considered good value at anything under 0.7.
It clearly takes all kinds of businesses to make a market, and 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 Oscroft does not own any shares 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.