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

food inflation supermarket morrisons tesco tesco food retailer dividend

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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Connect Group PLC19.20 GBX9.40
Dunelm Group PLC1,146.00 GBX-2.88
McColl's Retail Group PLC40.15 GBX-0.25
Morrison (Wm) Supermarkets PLC186.70 GBX0.78
Ocado Group PLC1,988.50 GBX-2.19
Sainsbury (J) PLC198.10 GBX1.15

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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