Share tips: WPP, Balfour Beatty, Centrica, Drax

18th Aug 2013 14:27

The displacement of WPP as the world's biggest advertising agency by the merger of Omnicom and Publicis could be good news for WPP, Simon Duke wrote in the Sunday Times' Inside the City column. WPP, led by Martin Sorrell, earns more from from fast-growing emerging economies and digital ads than its rivals, powering a trebling in value for its shares since 2008. Interim profits are set to rise 14% to £648m and the dividend could jump 25% to 11p, according to stockbroker Liberum. WPP could pick off big clients from its merged rival. General Electric has moved most of its work to WPP expect are likely to follow.The Telegraph's Questor column upgraded Balfour Beatty to buy from hold, saying the infrastructure group's grim first-half figures were an opportunity for investors. Balfour has been hit by weakness in Europe and a mining slowdown in Australia but there were signs of a revival in the US and the order book is growing, especially in Hong Kong. This means Balfour is less reliant on the UK, which is a good thing. The board also held the interim dividend under new chief executive Andrew MacNaughton, boding well for maintaining the full-year payout.Investors looking for a healthy, reliable dividend yield in future should consider Centrica and Drax, Simon Duke wrote in the Sunday Times. Citing HSBC research, he said both companies have been spending on cashflow-boosting projects that should increase shareholder returns. Drax is mopping up government subsidies by converting boilers in its giant UK power station to wood from coal, while Centrica looks likely to extend share buybacks after buying earnings-generating assets from US oil company Hess.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.