Autumn leaves a better taste for builder
In February, it revealed its plan to pay out dividends totalling £6.20 per share over the next 9.5 years, starting with 75p next June. It pledged to do so without piling on debt. “We’re pleased with the progress we’ve made on our strategy,” said managing director Jeff Fairburn. “We’re slightly ahead of the plan.”
Analysts at Panmure Gordon said “from an income perspective”, Persimmon is attractive. “The group is due to pay 75p per share to shareholders in June 2013 as part of a programme of cash returns,” they said. “This implies a yield of 9.8 per cent at current levels.”
Deutsche Bank analysts added Persimmon’s growing cash pile is “impressive” and “provides further confidence that the company will pay the 75p dividend next June”.