LONDON -- This week, the blue-chip buying retail clients of stockbroker TD Direct Investing once again had their eyes firmly on solid high-yielding blue chips on sale at tempting prices.
And first up is a share that seemingly has "bargain" written all over it: BG Group
The shares promptly plunged 17%, and remain 17% down over the week, as I write. That said, BG isn't a share for income investors -- its forecast yield is just 1.3%, on a market-average forecast price-to-earnings ratio of 11 -- but it does offer a cheap entry point into a business still regarded as growth stock.
Next up: Vodafone
Granted, a chunk of that yield is the "special" dividend from United States telco Verizon, but even without that, forecasts of a full‑year ordinary dividend of 9.6 pence place the share on a very creditable forecast yield of 5.6%.
No wonder, then, that the share comprised the third-most popular pick by TD Direct Investing's private clients between the market's opening on Monday and today at noon.
Announcing a 6% increase in its quarterly dividend this week, Glaxo has certainly seen an element of off-patent damage to sales. But management remain confident of the strength of the product pipeline, and -- 3% down on the week -- Glaxo's price today of 1,362 pence seemingly offers an attractive entry point into a business that is still very much a global major, with strengths in prescription drugs as well as consumer healthcare brands. And on a forecast yield of 5.6% and a forecast P/E of 11, it's not difficult to see the attraction.
Finally, what did super-investors Neil Woodford and Warren Buffett buy this week? We can't tell you that, but we can tell you the names of the shares that they've been buying in the recent past -- and why they've been buying them.
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Malcolm Wheatley holds shares in GlaxoSmithKline and AstraZeneca, but has no disclosable interest in any other of the shares listed. The Motley Fool has recommended shares in Vodafone. 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.
Disclaimer: This TD Direct Investing list of Top Ten Buys should not be taken as a recommendation to buy any particular stock, and is simply an indication of the general buying trends amongst TD Direct Investing customers during the period stated.