Numis hails "substantial" dividend hike at IG Group

22nd Jul 2014 12:46

IG Group offers "good value", according to Numis Securities, after the spreadbetting firm delivered a "substantial" increase in its dividend and lifted its payout ratio.The broker kept its 'add' rating on the stock with a target price of 665p.The company, which is about to launch a stock dealing service, reported on Tuesday that despite a subdued backdrop at the end of the year to May 31st, pre-tax profits rose 1.3% to £194.7m on net trading revenues that increased 2.4% to £370.4m."IG reported earnings per share a little ahead of our 40.0p forecasts at 40.2p. For us however, the 28% increase in the final dividend to 22.4p with an increase in the ongoing payout ratio to 70% was by far the most significant piece of new information," Numis said."IG now has a 4.9% historic yield with a dividend policy that remains progressive."The stock was up 8.4% at 623.5p by 12:33.BC