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I’d buy this FTSE 100 dividend stock for my Stocks and Shares ISA today

first_imgSimply click below to discover how you can take advantage of this. Enter Your Email Address Click here to claim your free copy of this special investing report now! I’ve been a fan of WPP (LSE: WPP) for a long time, mainly as a provider of dividend income. But in recent years it’s had a tough time. It’s been in decline since before founder Martin Sorrell left the FTSE 100 marketing group in controversial circumstances in 2018. Since then the slide has continued, and the Covid-19 crash gave the shares an extra kicking.The WPP share price has fallen 39% so far in 2020, and it’s down 52% over the past five years. The previously dependable dividend was slashed too, in 2019. But analysts are expecting earnings to start picking up again from 2021. And I’m seeing the potential for a renewed progressive phase for the firm’s rebased dividend.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Share price boostWPP shares picked up 5% Thursday morning, on the back of the company’s first-half results. They are still way below the FTSE 100’s 20% year-to-date drop, but they’re closing the gap.The company reported a pre-tax loss of £2.5bn, after revenue fell 12.3%. That came as no shock, and WPP did record a headline operating profit of £382m.What did surprise the market was the reinstatement of the firm’s dividend, after the 2019 final payout was cancelled. The interim dividend, set at 10p per share, suggests a full-year yield of 3% on the current share price. And we could even see better than that. The company told us its “performance in the second quarter was much better than initially anticipated“, and added that “the flexibility of our business model is delivering the £700–800 million of cost savings targeted.“It’s looking to me like the start of a turnaround that other FTSE 100 strugglers can do nothing but envy.Improved balance sheetThe biggest boost to WPP’s finances came from the sale of Kantar. The proceeds enabled the firm to get its average net debt down to £2.5bn, from £4.5bn in the prior period. It meant the company had cash of £2.5bn on the books at 30 June, and total liquidity (including undrawn facilities) of £4.7bn.WPP is still carrying a net debt to EBITDA ratio of 2.1 times, but it aims to get that multiple down between 1.5 and 1.75 times by the end of 2021. I think the announcement of the dividend is a sign of the firm’s confidence in hitting that target.I can’t help wondering if WPP would have been prepared to pursue such an aggressive reshaping had Martin Sorrell still been in charge. For the move to a slimmed down company in today’s environment to succeed, I think the change of management has turned out positive.FTSE 100 dividendsThese days, I’ll hold off considering an investment in a recovery stock until I see real signs of that recovery. And even though WPP still has some way to go on the profit front, I see this as such a sign.We’ll know more on the income front later, being told: “The Board has also decided to review our ongoing dividend policy, in the context of our overall capital allocation priorities. We intend to update investors on our plans as part of a wider capital markets event towards the end of 2020“.Looking for FTSE 100 income, I’d be happy to buy WPP shares now. Alan Oscroft | Thursday, 27th August, 2020 | More on: WPP Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img See all posts by Alan Oscroft Image source: Getty Images 5 Stocks For Trying To Build Wealth After 50 I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Shares I’d buy this FTSE 100 dividend stock for my Stocks and Shares ISA todaylast_img read more