Jefferies keeps 'hold' on Persimmon despite cash returns

25th Feb 2014 10:15

Broker Jefferies is keeping its 'hold' advice on Persimmon despite the house-builder's decision to speed up its dividend payments.Jefferies praised Persimmon's move to increase the planned 10p dividend payable on July 4th to 70p, to pay a dividend of 95p in 2015 and to hand out a least 10p a share in both 2016 and 2018.Persimmon attributed the decision to its generation of £231m of free cash following success in meeting increased demand and expanding the business."The acceleration of the dividend payment is welcome and helps to underpin the current share price," Jefferies said.However, the broker said there were better bargains to be had in the industry, including Bovis Homes and Taylor Wimpey."There is little doubt in our view Persimmon is a high quality company, which we believe is reflected in the price," the broker said. "There are, in our view, more attractively priced shares in the sector."Persimmon shares fell 15p or 1% to 1456p at 12:10 in London.PW