Hobson: Morrisons Ups Dividend, a Buy?

THE WEEK: Morningstar columnist Rodney Hobson weighs up the benefits of adding supermarket stock Morrisons to his basket

Rodney Hobson 14 September, 2018 | 2:46PM
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In the topsy-turvy world of supermarkets, Morrison (MRW) continues to catch the eye as its recovery shows no sign of abating. Don’t let a bout of profit-taking after a strong run for the shares over several months convince you otherwise.

The UK's fourth biggest supermarket chain admittedly posted pre-tax profits down 29% to £142 million in the six months to 5 August, but this was almost entirely down to one-offs, notably the cost of a bond tender offer that will reduce the debt interest burden from now on. The underlying profit performance was an improvement of 9%.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Dunelm Group PLC1,428.00 GBP0.00
McColl's Retail Group PLC37.13 GBP3.15
Morrison (Wm) Supermarkets PLC182.60 GBP0.00Rating
Ocado Group PLC1,967.00 GBP0.00Rating
Sainsbury (J) PLC259.20 GBP0.00Rating
Smiths News PLC42.95 GBP0.00

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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