Tuesday tips round-up: Bovis Homes, Amlin

19th Aug 2014 09:18

Bovis Homes saw legal completions jump 54% to 1,487 homes for the six months ended on 30 June and has already sold almost the entirety of the houses which it plans to build this year. The result of the above were outsized gains in both revenues and pre-tax profits which in turn fed a 200% increase in the company's interim dividend - well ahead of previous estimates. More significantly, the government's Help-to-Buy scheme should sustain dividend income from the sector. On eight times' next year's earnings the stock offers an attractive prospective dividend yield of 4.1%. Hence, while the best in terms of share price appreciation might be behind the shares continue to be a 'hold' for that growing dividend, says The Daily Telegraph's Questor column. Insurer Amlin saw profits at the half-year mark retreat by 8% to £148m, yet that was mostly because of the impact of foreign exchange swings, to the tune of £24.6m as the company was forced to revalue its non-monetary assets overseas. On top of that, the company's results were hit by the cost of a tornado that ripped through a small town in Nebraska and then a torrential storm in Paris with hailstones big enough to break drivers' windscreens. Investors should also gird themselves for the inevitable liabilities as a result of the two Malaysian Airlines mishaps. Then again, that's why the company exists in the first place, to guard against just such eventualities. On the upside, like many of its peers the firm is increasingly relying on a smaller number of large-scale reinsurers instead of dividing its business amongst a range of smaller ones. "It's a decent stock to tuck away for the long-term, irrespective of war, terrorism and the extreme vagaries of the weather," writes The Times' Tempus. 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.AB