<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
     xmlns:media="http://search.yahoo.com/mrss/"
     xmlns:content="http://purl.org/rss/1.0/modules/content/"
     xmlns:wfw="http://wellformedweb.org/CommentAPI/"
     xmlns:dc="http://purl.org/dc/elements/1.1/"
     xmlns:atom="http://www.w3.org/2005/Atom"
     xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
     xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
    xmlns:company="http:/purl.org/rss/1.0/modules/company" xmlns:fool="http://fool.com/rss/extensions"     >

    <channel>
        <title>Moss Bros Group News | The Twelfth Magpie</title>
        <atom:link href="https://www.twelfthmagpie.com/tag/moss-bros-group/feed/" rel="self" type="application/rss+xml" />
        <link>https://www.twelfthmagpie.com/tag/moss-bros-group/</link>
        <description>Share Tips, Investing and Stock Market News</description>
        <lastBuildDate>Wed, 01 Jul 2026 07:15:00 +0000</lastBuildDate>
        <language>en-GB</language>
                <sy:updatePeriod>hourly</sy:updatePeriod>
                <sy:updateFrequency>1</sy:updateFrequency>
        <generator>https://wordpress.org/?v=7.0</generator>

<image>
	<url>https://www.twelfthmagpie.com/wp-content/uploads/2026/05/cropped-Magpie_Icon_Black_RGB-1-32x32.png</url>
	<title>Moss Bros Group News | The Twelfth Magpie</title>
	<link>https://www.twelfthmagpie.com/tag/moss-bros-group/</link>
	<width>32</width>
	<height>32</height>
</image> 
            <item>
                                <title>One 8% yield I&#8217;d sell to buy this dividend growth stock</title>
                <link>https://www.twelfthmagpie.com/2018/05/16/one-8-yield-id-sell-to-buy-this-dividend-growth-stock/</link>
                                <pubDate>Wed, 16 May 2018 09:30:04 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Moss Bros Group]]></category>
		<category><![CDATA[superdry]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=112963</guid>
                                    <description><![CDATA[<p>This dividend growth stock flies under the radar of most investors and could be a bargain at the moment.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/05/16/one-8-yield-id-sell-to-buy-this-dividend-growth-stock/">One 8% yield I&#8217;d sell to buy this dividend growth stock</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p><strong>Moss Bros Group</strong> (LSE: MOSB) has long been considered one of the market&#8217;s top growth and income stocks. That is until a few months ago when the company <a href="https://www.twelfthmagpie.com/investing/2018/04/05/a-ftse-100-dividend-stock-id-buy-over-this-8-yielder/">issued a dire trading update</a> following a disappointing Christmas. </p>
<p>Management blamed the &#8220;<em>the more challenging trading environment</em>,&#8221; as well as &#8220;<em>stock shortages caused by the consolidation of key suppliers,</em>&#8221; for the problems. And as a result, the business slashed the full-year dividend for the period ending January to 1.97p per share from 3.98p a year earlier. This means the total payout for 2017 fell to 4p per share, a yield of 8.7% based on current prices. </p>
<p>However, it looks as if things are improving for the group as the year goes on. In a trading update ahead of its annual general meeting, the company announced today that like-for-like sales were down more than 5% in the 15 weeks to mid-May. Total sales declined 2.4%. </p>
<p>This might not be a showstopping performance, but it is a marked improvement from the March profit warning when like-for-like sales declined 6.5%. CEO Brian Brick noted in the update that the company has benefitted from the resolution of supplier issues and the &#8220;a<em>nticipated recovery in stock availability is on track and the stock position much improved from the early weeks of the current financial year.</em>&#8221; And the CEO is also highly confident that the group will have the right levels of stock to &#8220;<em>maximise our share of our customers&#8217; spend</em>&#8221; as it heads into the busiest period of the year for formalwear. </p>
<h3>Problems persist </h3>
<p>Despite the improvement in trading, I&#8217;m not buying Moss Bros&#8217;s recovery. While the company has carved out a nice niche for itself in the suit and formalwear market, the firm&#8217;s recent troubles show that despite its edge, the business is not immune to broader market headwinds. </p>
<p>Forecasts from the City support this conclusion. Analysts are predicting a 69% decline in earnings per share for 2018. A recovery is anticipated in 2019, but even though analysts have forecast earnings growth of 63%, estimated earnings of 2.9p per share still leave the group trading at a forward P/E of 16.5, a premium multiple for a struggling retailer in my opinion. </p>
<h3>International expansion </h3>
<p>In my view, <strong>Superdry</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-sdry/">LSE: SDRY</a>) could be a much better income and growth investment. For a start, shares in the fashion business are much cheaper. Based on current City forecasts, shares in the company are trading at a forward P/E of 12.2 falling to 10.7 for 2019. </p>
<p>Moreover, analysts have pencilled in double-digit dividend growth of 15% per annum for the next two years. This means that while the stock only yields 2.6% today, the yield is set to hit 3.2% by 2019 based on current prices. </p>
<p>That being said, Superdry does have some problems of its own. The stock was marked down by 15% in a single day last week when it revealed full-year gross margins have declined by approximately <a href="https://www.twelfthmagpie.com/investing/2018/05/10/next-plc-and-this-growth-bargain-could-make-you-rich/">200bps year-on-year</a>.</p>
<p>The good news is, despite the contracting margins, management believes the company is on track to report another year of double-digit earnings growth for the year to 30 April thanks to revenue growth of 16% for the period. The group is benefiting from its international diversification as well as global brand recognition, two traits I believe will help the enterprise continue to outperform the rest of the retail industry.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/05/16/one-8-yield-id-sell-to-buy-this-dividend-growth-stock/">One 8% yield I&#8217;d sell to buy this dividend growth stock</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Superdry. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>A FTSE 100 dividend stock I&#8217;d buy over this 8% yielder</title>
                <link>https://www.twelfthmagpie.com/2018/04/05/a-ftse-100-dividend-stock-id-buy-over-this-8-yielder/</link>
                                <pubDate>Thu, 05 Apr 2018 12:46:57 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[ITV]]></category>
		<category><![CDATA[Moss Bros Group]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=111277</guid>
                                    <description><![CDATA[<p>Royston Wild zeroes in on two dividend stocks, one a major player on the FTSE 100 (INDEXFTSE: UKX), that have very different investment appeal.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/04/05/a-ftse-100-dividend-stock-id-buy-over-this-8-yielder/">A FTSE 100 dividend stock I&#8217;d buy over this 8% yielder</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<img width="640" height="360" src="https://www.twelfthmagpie.com/wp-content/uploads/2016/11/Dividend-.jpg" class="attachment-rss-thumbnail size-rss-thumbnail wp-post-image" alt="dividend scrabble piece spelling" style="float:left; margin:0 15px 15px 0;" decoding="async" fetchpriority="high" /><p>I’ve always had great faith in <strong>Moss Bros Group</strong>’s (LSE: MOSB) ability to circumvent the broader pressures damaging the broader retail sector.</p>
<p>Up until recently I was confident the outfitter would be able to keep revenues on an upward keel on the back of its successful e-commerce strategy that has seen internet sales boom, as well as the impact of its store refitting programme that has worked a treat in dragging punters through the doors.</p>
<p>However, the <strong>FTSE 250</strong> business shook lower at the start of the year after a disappointing Christmas period in which lower footfall than it had previously anticipated <a href="https://www.twelfthmagpie.com/investing/2018/01/10/why-id-still-buy-moss-bros-group-plc-after-todays-15-crash/">forced it to issue a shock profit warning</a>.</p>
<p>And Moss Bros was <a href="https://www.twelfthmagpie.com/investing/2018/03/21/will-the-moss-bros-share-price-make-a-successful-comeback-after-falling-by-20/">at it again in March</a>, warning that high pressure on customers’ wallets &#8212; along with the disruption resulting from “<em>stock</em> <em>shortages caused by the consolidation of key suppliers</em>” &#8212; would see profits fall short of estimates.</p>
<p>In response to what it called “<em>the more challenging trading environment,</em>” Moss Bros took the drastic step of cutting the full-year dividend for the period ending January 20187 to 1.97p per share from 3.98p a year earlier. This meant the total payout for last year slumped by almost a third to 4p per share.</p>
<h3><b>Suiter slumps</b></h3>
<p>The net effect of these chilling updates is that the retailer has seen its share price almost halve in the space of less than three months. However, I wouldn’t consider this to be a sound dip buying opportunity.</p>
<p>I have faith that Moss Bros’s investment in cyberspace and in its store network will build the foundations for decent revenues growth in the long term. The &#8216;suiter and booter&#8217; is a reputable name in the field of selling and renting out smart men’s fashion, and this should help it to ride out the current storm.</p>
<p>But right now I believe the retail maelstrom taking bites out of the high street’s biggest retailer’s could send Moss Bros’s stock value shuttling even lower, as could predictions that the aforementioned supply problems be solved by late spring.</p>
<p>City estimates are currently suggesting a 47% earnings drop in fiscal 2019, reflecting these tough conditions, and yet brokers are still expecting the dividend to be held at 4p. Given the probability of this estimate being hacked down, I believe share pickers should pay little attention to the company’s gigantic 8.3% yield.</p>
<h3><b>TV star</b></h3>
<p><strong>ITV </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-itv/">LSE: ITV</a>) is another big-yielding share that has endured plenty of revenues pain recently thanks to slumping advertising budgets.</p>
<p>But I would be far happier to splash the cash on the <strong>FTSE 100</strong> broadcasting behemoth today, and not just because of its dirt-cheap forward P/E ratio of 9.4 times (which comes as stark contrast to Moss Bros’s higher corresponding reading of 17.3 times).</p>
<p>This low reading provides decent protection against a share price collapse should the predicted 4% earnings slide for 2018 increase in the months ahead. And what’s more, this is a great level at which to latch on to the brilliant long-term growth opportunities afforded by ITV’s global expansion drive and successful move into new media.</p>
<p>What’s more, an expected dividend of 8p per share &#8212; a figure that yields an impressive 5.5% &#8212; stands on stronger footing than the projected reward over at Moss Bros. ITV is a share I would happily buy today and stash away for the years ahead.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/04/05/a-ftse-100-dividend-stock-id-buy-over-this-8-yielder/">A FTSE 100 dividend stock I&#8217;d buy over this 8% yielder</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/500-gets-617-shares-in-one-of-the-top-ftse-income-stocks-to-buy/">£500 gets 617 shares in one of the top FTSE income stocks to buy!</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/21/heres-how-to-invest-3600-in-uk-shares-to-target-a-7-dividend-yield/">Here&#8217;s how to invest £3,600 in UK shares to target a 7% dividend yield</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/06/should-i-buy-itv-shares-for-my-isa-ahead-of-the-2026-world-cup/">Should I buy ITV shares for my ISA ahead of the  World Cup?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/04/with-dividend-yields-averaging-above-7-are-these-2-uk-shares-worth-considering/">With dividend yields averaging above 7%, are these 2 UK shares worth considering?</a></li></ul><p><em>Royston Wild has no position in any of the shares mentioned. </em><em>The Motley Fool UK has recommended ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Why this 14% yielder is still on my buy list today</title>
                <link>https://www.twelfthmagpie.com/2018/02/15/why-this-14-yielder-is-still-on-my-buy-list-today/</link>
                                <pubDate>Thu, 15 Feb 2018 12:45:20 +0000</pubDate>
                <dc:creator><![CDATA[Roland Head]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Connect Group]]></category>
		<category><![CDATA[Moss Bros Group]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=109281</guid>
                                    <description><![CDATA[<p>These risky turnaround situations could pay huge dividends. Should you invest?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/02/15/why-this-14-yielder-is-still-on-my-buy-list-today/">Why this 14% yielder is still on my buy list today</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Investing in a successful turnaround can be very satisfying as it often allows you to lock in a high yield and enjoy generous capital gains.</p>
<p>As a value investor, I&#8217;m often tempted by turnaround stocks if I feel that the company&#8217;s cash flow and balance sheet are strong enough to allow a recovery.</p>
<h3>A classic contrarian buy?</h3>
<p>One of the more extreme situations in the market at the moment is logistics specialist <strong>Connect Group </strong>(LSE: CNCT). This Swindon-based firm&#8217;s main business is the delivery of newspapers to shops each morning. It also owns parcel firm Tuffnells.</p>
<p>Connect shares have slumped from 143p to 66p over the last year and recently crashed 28% in one day following a profit warning.</p>
<p>I held the shares before the profit warning and decided to average down afterwards. Although the expected shortfall in profits this year is disappointing, the fall in the share price has been much greater than the expected shortfall in profits.</p>
<p>This business is still profitable and highly cash generative. I believe this should give management the breathing space they need to develop new sources of growth.</p>
<h3>Is a 14% yield possible?</h3>
<p>Anything connected to the traditional newspaper business is extremely out of favour at the moment. Valuations are very depressed &#8212; Connect stock currently trades on a forecast P/E of 4.7, despite having cut its debt levels significantly last year.</p>
<p>This ultra-low valuation means that the group&#8217;s forecast dividend yield has risen to more than 14%. That&#8217;s clearly a signal that the market expects profits to fall, with the dividend likely to be cut or suspended.</p>
<p>I agree that <a href="https://www.twelfthmagpie.com/investing/2018/01/22/could-connect-group-plc-be-the-next-carillion/">further problems are quite likely</a>. I wouldn&#8217;t take a large position in this stock. But if management can stabilise profits and find a route back to modest growth, then the shares could re-rate strongly, providing attractive gains from current levels.</p>
<h3>Should you buy this retailer?</h3>
<p>It&#8217;s no secret that high street retailers are finding things tough. A good example is men&#8217;s formalwear specialist <strong>Moss Bros Group </strong>(LSE: MOSB).</p>
<p>This company warned in January that full-year profits were likely to be <em>&#8220;slightly below current market expectations&#8221;</em>. The shares have since fallen by 22%, even though this is only expected to be a small miss.</p>
<p>What&#8217;s worrying the market, in my view, is that Moss Bros sales appear to have fallen off a cliff in December. The company said that like-for-like sales rose by 1.2% from August to November, but then <em>fell</em> by 8% in December.</p>
<p>That&#8217;s a remarkable decline. It suggests to me that there&#8217;s some underlying problem. No information was provided on what this might be, but management did say it also expects 2018/19 profits to be lower than anticipated.</p>
<h3>I&#8217;m staying away</h3>
<p>Moss Bros&#8217;s saving grace is that it has a strong balance sheet. Net cash was £21m at the end of July, which is equivalent to around 30% of the group&#8217;s £70m market cap. We don&#8217;t know how this may have changed during the second half, but this cash should mean that management can afford to invest in the business without financial constraints.</p>
<p>However, men&#8217;s fashion is always a difficult area. Until the company provides more information about the problems it&#8217;s facing and how they will be addressed, I plan to stay away from this stock.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/02/15/why-this-14-yielder-is-still-on-my-buy-list-today/">Why this 14% yielder is still on my buy list today</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Roland Head owns shares of Connect Group. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Why I&#8217;d still buy Moss Bros Group plc after today&#8217;s 15% crash</title>
                <link>https://www.twelfthmagpie.com/2018/01/10/why-id-still-buy-moss-bros-group-plc-after-todays-15-crash/</link>
                                <pubDate>Wed, 10 Jan 2018 12:11:30 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Moss Bros Group]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=107422</guid>
                                    <description><![CDATA[<p>Moss Bros Group plc (LON: MOSB) is sliding but the company still has some attractive qualities. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/10/why-id-still-buy-moss-bros-group-plc-after-todays-15-crash/">Why I&#8217;d still buy Moss Bros Group plc after today&#8217;s 15% crash</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p><strong>Moss Bros Group</strong> (LSE: MOSB) has become the latest retailer to issue a profit warning following a weak Christmas trading period. </p>
<p>The retailer announced this morning that due to lower footfall than anticipated during December, particularly in stores, it now expects to report a full-year profit before tax within a range of £6.5m to £6.8m, slightly below the current median forecast among analysts of £7.3m.</p>
<p>Like-for-like total sales for the 23 weeks to 6 January declined 0.1% year-on-year. Meanwhile, retail sales, including e-commerce, were up 0.4% on a like-for-like basis, thanks to a 12.3% increase in online sales. E-Commerce now accounts for around of 13% of group revenue, which is a relatively low percentage.</p>
<p>The suit hire business, which accounts for only 10% of revenue, saw a 3.6% decline in like-for-like sales though this was a marked improvement on the 8.4% decline in the first half of the year.</p>
<p>Unfortunately, management expects these harsh trading conditions to continue for the foreseeable future and would have an impact on profits for the next financial year as well as this one. Gross margins were down 3% year-on-year, after falling 0.7% in the first half of the year.</p>
<h3>Unique offering </h3>
<p>Moss Bros is the UK&#8217;s leading formalwear retailer, which gives it a certain advantage over other retailers. With 158 stores across the country, the group&#8217;s footprint and reputation have helped it more than double pre-tax profit over the past five years. </p>
<p>I believe that over the long term, this trend will continue. Indeed, buying a suit is not something that can easily be done online, which means unlike other retailers, the Moss Bros high street store portfolio should be an advantage, not a hindrance. </p>
<p>Also, unlike other retailers, Moss Bros <a href="https://www.twelfthmagpie.com/investing/2017/12/30/2-hot-dividend-stocks-id-buy-to-fund-my-nest-egg/">is a cash machine</a>. According to today&#8217;s update, the group expects to end its current financial year with £17m in cash after spending on developing its store portfolio. For the fiscal year to January 28 2017, the firm generated free cash flow (after capital spending) of £7m, more than enough to build its cash reserves and distribute over £5m to investors via a dividend. </p>
<p>At present, City analysts are expecting the firm to pay out <a href="https://www.twelfthmagpie.com/investing/2017/11/18/should-you-be-tempted-by-these-high-yield-small-cap-stocks/">6.2p for fiscal 2018</a>, which translates into a yield of 8.3% at current prices. Even if this target is not met, and management decides to hold the payout at last year&#8217;s 5.9p level, investors are in line to receive a yield of 7.8%. A dividend cut of as much as 30% to 4.1p would still imply a yield of 5.5%. </p>
<p>Overall, considering the unique Moss Bros proposition and attractive market-beating yield, I would buy the shares after today&#8217;s 15% decline. Earnings growth might not return for the next few years, but investors should be paid to wait as the firm improves its customer offering. Over the long term, this investment should pay off, and it is likely shareholders will be rewarded for their patience. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2018/01/10/why-id-still-buy-moss-bros-group-plc-after-todays-15-crash/">Why I&#8217;d still buy Moss Bros Group plc after today&#8217;s 15% crash</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 hot dividend stocks I&#8217;d buy to fund my nest egg</title>
                <link>https://www.twelfthmagpie.com/2017/12/30/2-hot-dividend-stocks-id-buy-to-fund-my-nest-egg/</link>
                                <pubDate>Sat, 30 Dec 2017 08:00:08 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Moss Bros Group]]></category>
		<category><![CDATA[Standard Life Aberdeen]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=106575</guid>
                                    <description><![CDATA[<p>Royston Wild looks at two shares with exceptional dividend potential.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/12/30/2-hot-dividend-stocks-id-buy-to-fund-my-nest-egg/">2 hot dividend stocks I&#8217;d buy to fund my nest egg</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Even though <strong>Standard Life Aberdeen</strong> (LSE: SLA) may not be having the best of it right now, I am convinced the financial colossus has what it takes to deliver stunning investment returns in the years ahead.</p>
<p>In its mid-December market update, the newly-created <strong>FTSE 100</strong> firm advised that fund outflows continued in the third quarter, continuing the trend seen in the first six months of 2017.</p>
<p>The business said that net outflows clocked in at £23bn during January-September, meaning that total assets under management registered at £646.2bn at the end of the period. This was down from £647.6bn at the beginning of the year.</p>
<p>Investors are pulling their money out of Standard Life Aberdeen because of concerns over stashing their cash in just one company, particularly one which has just come into existence.</p>
<p>It may take some time to convince these customers, but in the long run I reckon the fund management giant has a terrific future &#8212; the £11bn merger back in August has built a business with terrific scale, splendid cross-selling opportunities, and excellent exposure to both the UK and developing markets.</p>
<h3><strong>Dynamite dividend yields</strong></h3>
<p>Not that City analysts believe it will take long for Standard Life Aberdeen to deliver knockout earnings growth, mind. Indeed, profits rises of 59% and 9% are predicted for 2017 and 2018 respectively, meaning the company changes hands on a mega-cheap prospective P/E ratio of 14 times.</p>
<p>This &#8212; combined with the investment specialist’s exceptional cash generation &#8212; underpins dividend projections of 21.7p for this year and 23p per share for 2018. And as a result Standard Life Aberdeen carries mighty yields of 5.2% and 5.5% for this year and next.</p>
<h3><strong>A smart selection</strong></h3>
<p>I also believe <strong>Moss Bros Group’s </strong>(LSE: MOSB) <a href="https://www.twelfthmagpie.com/investing/2017/10/30/2-dividend-stocks-you-can-retire-on/">market-mashing dividend yields</a> make it worthy of serious attention today.</p>
<p>In the year to January 2018, the retail play is expected to hike the dividend to 6.2p per share from 5.89p in the prior period, underpinned by a 6% earnings rise and resulting in a mammoth 7.4% yield.</p>
<p>Another 2% profits rise is predicted for fiscal 2019, too, and as a consequence the dividend is expected to step to 6.5p, nudging the yield to an even-better 7.7%.</p>
<p>And like over at Standard Life Aberdeen, stock pickers can take extra security from Moss Bros’ strong balance sheet, giving current forecasts additional weight. The company had £21.5m of cash on its books as of July and zero debt.</p>
<p>Of course, Moss Bros is not immune to the macroeconomic pressures washing over the broader retail sector.</p>
<p>But so far the suit specialist is managing to keep its head above water, the massive investments it had made in refreshing its store network, as well as improving its digital operations, continuing to deliver revenues growth. Indeed, the business saw like-for-like sales improve 2.8% during the six months to July, a result that helped pre-tax profit leap 15.7% year-on-year to £4.2m.</p>
<p>Whilst Moss Bros may struggle to deliver the brilliant earnings growth of yesteryear in the current climate, in my opinion a prospective P/E ratio of 14.7 times still makes it worthy of attention.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/12/30/2-hot-dividend-stocks-id-buy-to-fund-my-nest-egg/">2 hot dividend stocks I&#8217;d buy to fund my nest egg</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/19/how-much-second-income-could-i-make-from-10k-in-the-stock-market/">How much second income could I make from £10k in the stock market?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/14/has-this-ftse-100-dividend-stock-finally-turned-a-corner/">Has this FTSE 100 dividend stock finally turned a corner?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/09/how-much-do-i-have-to-invest-in-this-newly-promoted-ftse-gem-to-target-7927-a-year-in-passive-income/">How much do I have to invest in this newly-promoted FTSE gem to target £7,927 a year in passive income?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/04/aberdeen-shares-are-back-in-the-ftse-100-is-this-turnaround-stock-just-getting-started/">Aberdeen shares are back in the FTSE 100 — is this turnaround stock just getting started?</a></li></ul><p><em>Royston Wild has no position in any of the shares mentioned. </em><em>The Motley Fool UK has recommended Standard Life Aberdeen. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 dividend stocks you can retire on</title>
                <link>https://www.twelfthmagpie.com/2017/10/30/2-dividend-stocks-you-can-retire-on/</link>
                                <pubDate>Mon, 30 Oct 2017 13:00:01 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Moss Bros Group]]></category>
		<category><![CDATA[SOCO International]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=104477</guid>
                                    <description><![CDATA[<p>These two stocks have all the hallmarks of buy-and-forget income champions. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/10/30/2-dividend-stocks-you-can-retire-on/">2 dividend stocks you can retire on</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Oil &amp; gas minnow <strong>Soco International</strong> (LSE: SIA) has today announced a new production sharing agreement in offshore Vietnam, between it and PetroVietnam, SOVICO Holdings. The new deal will see Soco take on a 70% operated interest in two blocks, 125 &amp; 126, located in moderate to deep water in the Phu Khanh Basin. </p>
<p>According to initial reports, both of these have &#8220;<em>multiple structural and stratigraphic plays</em>.&#8221;  Interpretation of the existing data &#8220;<em>indicates there is good potential for source, </em>expulsion<em> and migration of oil with numerous reservoir and seal intervals likely.</em>&#8221; Soco is looking to further explore these prospects in the years ahead. Management is currently projecting that an exploration well could be drilled by 2021 if all goes to plan. </p>
<h3>Steady growth via exploration </h3>
<p>This is just the latest development in the history of Soco, a company that has produced huge returns for investors. </p>
<p>Indeed, over the past few years, it has built a reputation for itself as one of the oil sector&#8217;s best income stocks. This year, analysts believe that the company will return 5p per share to investors, giving a dividend yield of 4.4%. However, next year analysts are currently projecting the payout to drop to 1p, giving a token yield of only 0.9%. </p>
<p>I believe that this forecast is overly pessimistic.  Full-year production guidance has been maintained at 8,000 to 9,000 barrels a day, and pre-tax profit is expected to double this year. Moreover, the company&#8217;s oil sells at a premium to the Brent benchmark, indicating the quality of the offering. The firm&#8217;s production costs in Vietnam are less than $13 per barrel, which is right at the bottom of the cost curve and as oil prices increase, operational gearing should result in higher cash generation. </p>
<p>Put simply, it looks as if City forecasts are highly conservative and Soco will remain a top dividend stock for the foreseeable future. </p>
<h3>One of a kind cash cow </h3>
<p>As well as Soco, I&#8217;m positive on retailer <strong>Moss Bros</strong> (LSE: MOSB) for long-term income seekers. </p>
<p>Despite all the concerns about the demise of the high street, I believe that Moss Bros has what it takes to weather the storm. Buying and hiring formalwear, is a specialist business, and it&#8217;s just not possible to completely replicate the experience online. This means that the business is, to a certain extent, insulated from the likes of <b>Amazon</b>. </p>
<p>City analysts are also optimistic about the prospects for the firm&#8217;s growth in the years ahead as well. Earnings per share growth of 2% to 6% is pencilled in for the next two years. </p>
<p>The shares currently support a dividend yield of 6.2% and while this isn&#8217;t covered by earnings per share, the distribution is covered by cash generated from operations. For example, for 2017 total cash dividends paid out of £5.7m were easily covered by free cash flow from operations of £7.2m. </p>
<p>As Moss Bros&#8217; sales and earnings continue to expand, it looks as if the payout will remain well covered and secure for the long term. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/10/30/2-dividend-stocks-you-can-retire-on/">2 dividend stocks you can retire on</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Rupert Hargreaves does not own any share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 retail stocks with hotter growth prospects than Tesco plc</title>
                <link>https://www.twelfthmagpie.com/2017/10/28/2-retail-stocks-with-hotter-growth-prospects-than-tesco-plc/</link>
                                <pubDate>Sat, 28 Oct 2017 07:00:54 +0000</pubDate>
                <dc:creator><![CDATA[Royston Wild]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[B&M]]></category>
		<category><![CDATA[Moss Bros Group]]></category>
		<category><![CDATA[Tesco]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=104306</guid>
                                    <description><![CDATA[<p>Royston Wild discusses two stocks with superior growth prospects to Tesco plc (LON: TSCO).</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/10/28/2-retail-stocks-with-hotter-growth-prospects-than-tesco-plc/">2 retail stocks with hotter growth prospects than Tesco plc</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Today I am looking at two retailers I&#8217;d stash my hard-earned cash into rather than <strong>Tesco </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-tsco/">LSE: TSCO</a>). For a long time now, I&#8217;ve sung the praises of menswear specialist <strong>Moss Bros </strong>(LSE: MOSB).</p>
<p>While the company is not immune to the trading troubles brought on by deteriorating economic conditions in the UK &#8212; it was hampered by a “<em>very tough trading environment</em>” in the first half of the fiscal year &#8212; it continues to post decent revenues growth as its store refit programme helps draw shoppers through its doors, and development of its e-commerce proposition carries on. Like-for-like sales rose 5.1% during February-July.</p>
<p>The City is expecting earnings at Moss Bros to rise 4% and 1% in the years to January 2017 and 2018, respectively, resulting in a prospective P/E reading of 16.4 times. While these medium-term projections may hardly be magnetic, Moss Bros’ dividend prospects should certainly make investors sit up and take notice.</p>
<p>In fiscal 2018, the London-based company is predicted to shell out a 6.2p per share reward, up from 5.89p in the prior 12 months, and yielding 6.7%. And the yield steps up to 7.1% next year, thanks to expectations of a 6.5p payment.</p>
<h3><strong>Value star</strong></h3>
<p>I am also convinced that, with spending pressures mounting in the UK as consumer confidence falls and real incomes deteriorate, that sales over at<strong> B&amp;M European Retail </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bme/">LSE: BME</a>) should keep on chugging merrily higher.</p>
<p>Reflecting previous tearaway sales performance, the Liverpool-based firm has seen its share value explode 68% over the past 12 months alone. And B&amp;M’s market price should continue to swell as sales on a like-for-like basis jumped 7.3% in the UK between April and June, the company said in its latest trading statement.</p>
<p>As I say, rising pressure on household budgets should send more and more shoppers into the arms of B&amp;M in the years ahead. And the company is rapidly expanding to capitalise on this, opening nine new stores in the UK, and a further four in Germany, in the most recent quarter.</p>
<p>Accordingly, the City is anticipating earnings to leap 19% and 17% in the 12 months to March 2018 and 2019, respectively. And while current projections results in an elevated P/E ratio of 22.8 times, I reckon this is brilliant value given B&amp;M’s prominent role in an expanding market.</p>
<h3><strong>Competitive crisis</strong></h3>
<p>Like the retailers I have discussed above, Tesco is also expected to deliver profits growth now and for next year. Britain’s biggest supermarket is predicted to report expansion of 51% in the year to February 2018, and by 26% in the following period.</p>
<p>But unlike Moss Bros, the scale of competition Tesco is facing to keep profits rattling higher is becoming increasingly formidable. Indeed, the same pressure on consumers’ wallets that is driving shoppers heading over to B&amp;M is also casting a shadow over the long-term earnings potential of Tesco, with shoppers of all income groups piling into the likes of Aldi and Lidl in greater numbers.</p>
<p>Current earnings projections leave the grocery giant dealing on a forward P/E ratio of 18.2 times. Unlike B&amp;M and Moss Bros, however, I would be unhappy to pay a pretty premium for Tesco right now.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/10/28/2-retail-stocks-with-hotter-growth-prospects-than-tesco-plc/">2 retail stocks with hotter growth prospects than Tesco plc</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/27/heres-what-a-surging-tesco-share-price-has-done-to-10000-invested-5-years-ago/">Here’s what a surging Tesco share price has done to £10,000 invested 5 years ago</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/20/are-tesco-shares-losing-their-momentum/">Are Tesco shares losing their momentum?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/18/tescos-share-price-drops-2-on-q1-trading-miss-whats-gone-wrong/">Tesco&#8217;s share price drops 2% on Q1 trading miss. What&#8217;s gone wrong?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/18/as-tesco-shares-dip-on-q1-results-is-this-a-brilliant-time-to-buy/">As Tesco shares dip on Q1 results, is this a brilliant time to buy?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/18/how-much-might-19999-in-a-cash-isa-be-worth-in-2036/">How much might £19,999 in a Cash ISA be worth in 2036?</a></li></ul><p><em>Royston Wild has no position in any of the shares mentioned. </em><em>The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>These under-the-radar income stocks offer market-beating payouts</title>
                <link>https://www.twelfthmagpie.com/2017/09/28/these-under-the-radar-income-stocks-offer-market-beating-payouts/</link>
                                <pubDate>Thu, 28 Sep 2017 12:59:45 +0000</pubDate>
                <dc:creator><![CDATA[Zach Coffell]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Andrew Sykes Group]]></category>
		<category><![CDATA[Moss Bros Group]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=102792</guid>
                                    <description><![CDATA[<p>These little-known stocks offer massive dividend payouts, but are they really better buys than FTSE100 dividend giants? </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/09/28/these-under-the-radar-income-stocks-offer-market-beating-payouts/">These under-the-radar income stocks offer market-beating payouts</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p><b>Andrew Sykes</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-asy/">LSE: ASY</a>) is not your run-of-the-mill publicly traded company. Founded in 1857, the engineering business has developed from manufacturing steam engines to becoming “<em>the UK’s leading specialist hire company</em>” today, providing a mixture of pumping, cooling and heating systems for virtually any need.</p>
<p>Around 90% of the business is owned by the 97-year-old chairman JG Murray and his family. A lot of investors are put off of investing in family-owned businesses, but I believe that a high level of ‘skin in the game’ nicely incentivises management to drive the company forward. In this particular instance, liquidity levels can be low and this should be considered by anyone mulling over an investment. </p>
<p>Aside from massive insider ownership, there are a few points of note about the company: it has strong margins and cash flows but is not focused on driving growth.</p>
<p>Over the last five years, the share price has increased 220% taking it past fair value, in my opinion, given its patchy growth history. Revenue increased 16% in H1 and profit followed suit, increasing 6%, but results have historically moved within a range so I’d urge investors not to get over-excited about growth here. </p>
<p>Basic earnings per share came in at 15p and 11.9p is being paid out as an interim dividend. The shares offer a 4% yield. The company is interesting, but I’m not sure the payout is enough considering the sluggish growth on show over the years and more stable FTSE100 candidates offering a similar payout with better coverage and prospects.</p>
<p>It is one to watch however, and I&#8217;d consider a purchase if it were to offer a 6% to 7% yield in the future. </p>
<h3>Suits me?</h3>
<p><b>Moss Bros</b> (LSE: MOSB) increased its interim dividend by 6.3% today. If we extrapolate that rise to the final dividend too, the shares offer a prospective 6.5% yield. That’s a pretty impressive payout and might be sufficient to tempt investors away from larger, more stable cash cows. </p>
<p>The group’s revenue increased by 4.3% in the first half, with 2.8% like-for-like growth. These are solid figures, but it is important to note that the LFL figures include a number of shop refits that cost the company a significant amount of cash. Once the wave of refits is finished, I’d expect LFL figures to drop off a bit. Investors should take that into account when valuing the company. </p>
<p>The company sells suits and accessories but also offers a for-hire service. Unsurprisingly, when one does well, the other tends to falter a bit. More recently, customers have been buying, so hiring revenues decreased 8.4%, which is a shame, given the latter’s impressive 70% gross margins. </p>
<p>I’m not sure Moss has much of a competitive advantage to differentiate itself from a number of other formalwear retailers and competition online. That could explain low operating margins at 6.3%, despite the profitable for-hire segment. </p>
<p>The yield is only thinly covered by earnings, although more soundly so by cash flows. The company is conservatively financed too, with a cash balance of £21.5m. I reckon Moss looks attractive at current prices, but I’m still not 100% sold on the company. It has significant fixed costs and I worry a downturn could see profits evaporate rather quickly, placing pressure on the dividend. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/09/28/these-under-the-radar-income-stocks-offer-market-beating-payouts/">These under-the-radar income stocks offer market-beating payouts</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-yield-of-6-8-and-a-p-e-ratio-of-12-1-is-this-a-dirt-cheap-ftse-250-stock-to-consider/'>With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/will-spacex-nvidia-or-alphabet-be-the-first-10trn-stock/'>Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/up-95-this-ftse-100-stocks-outperformed-nvidia-over-the-past-year/'>Up 95%! This FTSE 100 stock&#8217;s outperformed Nvidia over the past year</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/with-a-9-3-yield-is-this-an-amazing-opportunity-to-consider-buying-dirt-cheap-taylor-wimpey-shares/'>With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?</a></li><li> <a href='https://www.twelfthmagpie.com/2026/07/01/how-much-do-you-need-in-a-stocks-and-shares-isa-to-aim-for-375-a-week-in-retirement/'>How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?</a></li></ul><p><em>Zach Coffell has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Two 6%+ yielders that could help you beat the market</title>
                <link>https://www.twelfthmagpie.com/2017/08/06/two-6-yielders-that-could-help-you-beat-the-market/</link>
                                <pubDate>Sun, 06 Aug 2017 08:10:26 +0000</pubDate>
                <dc:creator><![CDATA[Rupert Hargreaves]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Moss Bros Group]]></category>
		<category><![CDATA[Plus500]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=100697</guid>
                                    <description><![CDATA[<p>These two yields could turbocharge your portfolio's performance. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/06/two-6-yielders-that-could-help-you-beat-the-market/">Two 6%+ yielders that could help you beat the market</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Every investor loves dividends. There’s nothing better than watching dividend income drop into your account every quarter. Over the long term, this income can significantly enhance your investment returns.</p>
<p>And in today’s low interest rate environment, dividends are vital if you want to achieve the best return on your money.</p>
<p>One of the best dividend stocks out there at the moment is <b>Moss Bros </b>(LSE: MOSB). While other retailers have struggled, this formalwear retailer has continued to expand with earnings per share rising from 2.3p in 2013 to 5.4p for the financial year ending 31 January 2017.</p>
<p>Management has decided to pay out almost all of the company’s earnings to shareholders via dividends. The dividend payout of 5.9p per share is not covered by earnings per share. Still, on a cash basis the payout looks secure for the time being. For the financial year ending 31 January, the company generated £16m in cash from operations. It spent £8.8m of this total on capital projects and the total dividend payout amounted to £5.7m. So, not only was the dividend well covered for the year, but the company also generated excess cash after capital spending.</p>
<p>These figures suggest that Moss Bros’s dividend yield of 6% is here to stay and if the City estimates are correct, the payout is expected to rise gradually over the next three years, hitting 6.6% by 2019. As long as cash generation continues to improve, there’s no reason why the company cannot hit this target. Analysts believe pre-tax profit will rise by around 10% over the same period.</p>
<p>The one downside is that shares in the retailer currently trade at a relatively expensive multiple of 17.5 times forward earnings, which does not leave much room for manoeuvre if it disappoints on earnings growth.</p>
<h3>Cheap income </h3>
<p><b>Plus 500</b> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-plus/">LSE:PLUS</a>) sits at the other end of the valuation spectrum. Shares in the company currently trade at a forward P/E of 9.2 as City analysts have pencilled in a decline in earnings per share of 15% for this year. However, despite the lacklustre growth outlook, shares in the company support a dividend yield of 7.8%. </p>
<p>According to City projections, the payout of 46.8p is covered around one-and-a-half times by earnings per share, even after accounting for the earnings slide.</p>
<h3>Proving doubters wrong </h3>
<p>Shares in Plus 500 have always sported a high dividend yield because the City has consistently doubted whether or not the company can continue to sustain the payout. So far, the firm has proved all of its doubters wrong and has continued to meet its dividend obligations, despite an increasingly challenging backdrop. </p>
<p>Nonetheless, as regulators around the world start to clamp down on CFD trading, one of Plus 500’s specialities, it remains to be seen if the company can continue on its current course. Analysts expect earnings per share to fall by more than a third over the next two years and management’s hand may be forced. That being said, even if the company rebases the dividend to the lower earnings figure, the shares will still yield around 6%, based on cover of one-and-a-half times earnings.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2017/08/06/two-6-yielders-that-could-help-you-beat-the-market/">Two 6%+ yielders that could help you beat the market</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/20/20000-in-an-isa-heres-how-you-can-aim-for-an-833-monthly-passive-income/">£20,000 in an ISA? Here&#8217;s how you can aim for an £833 monthly passive income</a></li></ul><p><em><a href="https://my.fool.com/profile/RupertHargreav/info.aspx">Rupert Hargreaves</a> has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
]]></content:encoded>
                                                                                                                    </item>
                    </channel>
</rss>
