It’s easy to see why. Landlord costs are rising. Mortgage tax relief is being cut. And the outlook for the housing market is uncertain, despite high house prices.

I believe there are much better opportunities in the stock market. Today, I want to highlight one stock I think could be the best single way to profit from property.

A global player

International real estate advisor Savills (LSE: SVS) is no ordinary high street estate agent. Last year, its revenue rose by 10% to £1,761m, generating an underlying pre-tax profit of £143.7m. In my view, this business has three features which could make it a best-buy opportunity for property investors.

One attraction is the group’s geographic diversity. About 38% of this revenue came from the UK, with a further 33% from the Asia Pacific region. The remainder was split between North America and Europe and the Middle East. This diversity means profits should hold up quite well in the event of a domestic downturn.

A second point is that the group operates retail and commercial property markets, as well as in residential property. So sales volumes aren’t dependent on one single sector of the market.

Finally, Savills also offers a range of so-called non-transactional services such as investment management and property management. These don’t depend on property sales, so they generate income even during quieter periods.

A 1,300% winner

Long-term investors have made a lot of money from Savills. The shares have risen by 1,300% over the last 20 years. That’s an average growth rate of about 14% per year, well above the wider market.

Although the dividend was scaled back during the financial crisis, the current dividend of 31.2p per share is 440% more than the 5.75p payout in 1999.

Chairman Nicholas Ferguson has warned of an uncertain outlook for 2019. But results for the year are still expected to be in line with market forecasts. These price the stock at 12 times forecast earnings, with a 3.6% dividend yield.

I think Savills looks a decent buy at this level. I see this as a business to buy for the long term, with a view to averaging down during the next property downturn.

An alternative property play

Another property stock that’s impressed me is AIM-listed Watkin Jones (LSE: WJG). This £565m firm specialises in developing and managing build-to-rent developments and student accommodation.

Both types of property are in strong demand from institutional investors. Earlier this week the company announced that it had pre-sold a 599-bed student development in Wembley for £90m, even though it won’t be ready for use until 2021.

Once it’s complete, Watkin Jones will manage the property for the new owners, generating a further income from this project.

In my view, businesses like this look more attractive than some housebuilders and much more attractive than buy-to-let. Last year, saw the firm report a 20% increase in revenue and a 26% increase in pre-tax profit. Although earnings growth is expected to slow this year, I think the 3.7% yield provides a good starting point for investors. I’d keep buying.

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Roland Head 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 us better investors.

The two companies also have some notable differences. Purplebricks was founded less than 10 years ago and is a disruptive ‘hybrid’ estate agency. Watkin Jones’ roots go back as far as 1791 and it’s engaged in a more traditional business of property development and construction. Purplebricks is currently loss-making, while Watkin Jones is not only profitable, but also pays a dividend.

Just over a year ago, I named Watkin Jones as a stock I’d buy for 2018, and Purplebricks as a stock I’d sell. In a year in which the AIM market fell 19.2%, the Watkin Jones share price declined 6.4% (220p to 206p), while the Purplebricks share price slumped a whopping 64.4% (416p to 148p). In view of the magnitude of the difference in the movement of their share prices over the past year, have I changed my rating of these two stocks for 2019?

Purple blues

A year ago, I was concerned about Purplebricks’ high valuation. The shares were trading at 160 times a maiden profit forecast for its financial year ending April 2019. It’s not now forecast to make a profit this year. Or next year. The maiden profit is currently pencilled in for the year to April 2021. And the current share price is 130 times that forecast profit.

Aside from the sky-high valuation and a maiden profit forecast that has continually retreated over the horizon (originally forecast for the year to April 2017), I have another big concern. I have serious doubts about the sustainability of Purplebricks’ business model.

House-sellers pay the company upfront whether the sale completes or not. This might have just about worked in the booming property market of the last few years, when houses were ‘selling themselves’, but we’re now seeing a slowing market — not only in the UK, but also in Australia, Canada and the US, where Purplebricks is aggressively expanding.

With traditional estate agents also fighting back, I can see Purplebricks’ going a similar way to another Woodford flop: ‘disruptive’ mattress seller eve Sleep. As such, I continue to rate the stock a ‘sell’.

Keep up with the Joneses

I believe Woodford is on far more solid ground with Watkin Jones, and I continue to rate this stock a ‘buy’. The company is a UK leader in multi-occupancy residential property, with a focus on the student accommodation and build-to-rent sectors. There’s good growth here, but I also think this positioning — together with the group’s accommodation management arm — could provide it with more resilience through the economic cycle than companies focused on some of the other areas of the property market.

Earlier this week, Watkin Jones posted record results for its financial year ended 30 September. Earnings increased 14% and its board upped the dividend by 15%. At the current share price, we’re looking at a valuation of 13.7 times trailing earnings, and a running dividend yield of 3.5%. I view this as an attractive investment proposition.

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G A Chester 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 us better investors.

House prices have been rising steadily since the financial crisis. They’re close to record highs in many areas of the country. The rules and regulations faced by buy-to-let landlords are also getting tougher, increasing costs.

That’s not all. Between April 2017 and April 2020, changes to the rules on mortgage tax relief mean that many landlords will face rising tax bills. One final headwind is that many investors expect interest rates to increase as well.

A long-term opportunity?

To make money from buy-to-let, your rental income needs to leave you with a profit after tax, mortgage payments, property costs and void periods between tenants. High property prices make this more difficult, as my colleague Kevin Godbold recently explained.

Today I want to look at two property companies operating in areas that are seeing strong growth.  The first of these is property developer Watkin Jones Group (LSE: WJG). This £540m AIM-listed company operates in the build-to-rent and student accommodation markets.

The company’s revenue rose by 20% to £363m last year, while its adjusted pre-tax profit rose by 15.7% to £50.1m. Net cash almost doubled to £80.2m, up from £41m at the end of 2017. Shareholders will enjoy a 15% dividend rise to 7.6p per share.

Watkins’ management expects to continue to benefit from favourable market conditions. It says that students are increasingly choosing purpose-built student accommodation instead of older university halls or shared houses. According to today’s results, another potential boost is that the number of 18-year-olds in the UK is expected to rise from 2021.

Fund manager Neil Woodford is Watkin Jones’ second-largest shareholder, with a 12.9% holding. I can see why Mr Woodford is attracted to this business. Today’s results have left the stock trading on a price/earnings ratio of 13.5 with a dividend yield of 3.5%. I think that these shares could easily beat buy-to-let from current levels.

A FTSE 100 star

Over the last five years, shares in warehouse specialist Segro (LSE: SGRO) have risen by 80%. The FTSE 100 index to which it belongs has gained just 4% over the same period.

This outperformance has been driven by strong demand and rising values for so-called big box warehouses. These are the huge buildings needed by large retailers, logistics groups and other firms to cope with the growth in online retail, and the supply requirements of modern industry.

One problem for potential tenants is that acquiring the large, well-located areas of land required to build new warehouses can be difficult and slow. Such is the demand for property of this type that 71% of Segro’s projects under development have been leased ahead of completion.

My only concern is that this sector may eventually overheat. I’m not sure how likely this is. The two key growth trends identified by Segro boss David Sleath are e-commerce and urbanisation. Neither seems likely to slow down just yet, from what I can see.

The shares trade at a slight premium to their last-reported book value of 603p, and offer a 2019 forecast dividend yield of 3.1%. This stock isn’t cheap. But I believe this business is likely to outperform buy-to-let. I’d be happy to own the shares.

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Roland Head 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 us better investors.

Reach (LSE: RCH) is a share that rebadged itself last March following the acquisition of Northern and Shell’s Express and Star powerhouse newspaper titles, thus putting the era of Trinity Mirror on the bonfire.

In times gone by I have celebrated the exceptional sales opportunities afforded by this acquisition, and I’m pleased to say that latest trading details released last month vindicated the rationale of the move. Group turnover boomed 23% during the fourth quarter thanks to the contribution of its new blockbuster titles, and as an added bonus, Reach advised that synergy savings from the deal will have clocked in at £3m versus the £2m forecast as recently as October.

Consequently the publisher declared that full-year performance will barge past market expectations.

Reach now has the bit between its teeth and I’m expecting City predictions of a 5% earnings rise, and a 5% dip, in 2019 and 2020 respectively to be upgraded in the weeks and months to come.

Big, big dividends

Another cause for celebration is the rate at which the business is churning out cash, a quality that it estimated would push net debt to £55m as of the close of 2018 from £81m just six months earlier and which underpins predictions of big dividends in the near term and beyond. Reach is anticipated to lift the expected 6.1p per share total dividend for last year to 6.4p this year and to 6.7p in 2020, figures that yield a staggering 10.3% and 10.8% respectively.

It also trades on a forward P/E ratio of 1.6 times. Of course the newspaper market remains under extreme pressure, but I believe that this valuation is much too cheap and suggests that the market remains far too cautious. In fact, I reckon this low rating gives plenty of scope for Reach to extend December’s perky share price performance as we move through 2019 as the top line picks up a head of steam.

Another big yielder

Those seeking brilliant income shares off the beaten path may also want to give Watkin Jones (LSE: WJG) a close look today.

The student accommodation play is in an increasingly robust position to capitalise on the inward flow of university attendees to the UK as it ramps up building activity. In the fiscal year to September 2018, it completed 10 student accommodation developments comprising a total of 3,415 beds. And it has taken steps to reinforce its build pipeline for the next few years with four development sites with a total of 2,189 beds already having been secured.

And Watkin Jones has plenty of financial strength to keep the construction work rolling, as well as to keep paying out above-average dividends.

City analysts agree, at least on the latter point, and predict that the dividend will rise to 8p per share in fiscal 2019 from an anticipated 7.3p  for last year, supported by an anticipated 7% earnings rise and yielding a chubby 3.8%. And there’s additional good news for next year, an estimated 9% profits bounce giving rise to an expected 8.7p dividend and a subsequent 4.1% yield.

I believe that Watkin Jones, like Reach is a great share to buy and to squirrel away for the years ahead, and particularly so today given its cheap forward P/E ratio of 13.2 times.

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Great shares for a diversified portfolio

I wouldn’t bet the farm on these two, but as part of a diversified portfolio of shares, I think Neil Woodford’s top holding by value, smoking products supplier Imperial Brands (LSE: IMB), and construction and development firm Watkin Jones (LSE: WJG), are worth digging into. Imperial Brands’ projected dividend yield for the trading year to September 2019 is running above 8%, and City analysts expect Watkin Jones to pay a dividend yielding close to 4% for the year to September 2019. So, at first glance, both companies are good candidates for a dividend-first investing strategy.

Watkin Jones develops and constructs multi-occupancy properties focusing on student accommodation and build-to-rent sectors. It’s a good business and the firm has a record of growing revenue, normalised earnings, operating cash flow, and the dividend. City analysts following the firm expect further annual advances in those measures over the next two years or so. Meanwhile, earnings cover the dividend payment more than twice, and there’s decent support for earnings from operating cash flow. In October, the firm said in a trading update that it has a “strong” development pipeline that provides “excellent” future earnings and cash flow visibility.

Despite the macroeconomic headwinds blowing from Brexit, and the general nervousness in stock markets that we’ve been seeing, there’s no sign that Watkin Jones is suffering any weakness in its operations, and the outlook is robust. I think the firm could be a great example of Neil Woodford’s current-declared strategy of buying out-of-favour UK-facing cyclical firms because, to him, they look undervalued.

No sign of stalling operations

Imperial Tobacco’s trend of growing earnings, cash flow and dividends shows no sign of stalling, despite a collapse in the share price since 2016. City analysts predict solid progress over the next couple of years, but the valuation rating has plummeted. Has the firm lost its defensive credentials, then? I don’t think so, but investors are worried about something. Perhaps it’s the unpredictability of the regulatory environment for smoking-related products.

I think, in general, defensive firms suffer from their own type of cycle where they fall in and out of favour with investors. This means the valuations of such companies tend to be alternatively high and low as the cycle plays out. Right now, we seem to be in a low phase of the cycle, so I think it is worth picking up a few Imperial Tobacco shares to collect the fat dividend while waiting to see what happens next. In November’s final results report, the firm said it’s “well positioned to deliver strong, sustainable shareholder returns,” and I’m inclined to take a chance that the directors might be right in that assessment.

The post 2 Neil Woodford shares I’d snap up for 2019 appeared first on The Twelfth Magpie.

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Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands. 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 us better investors.

Online estate agency Purplebricks (LSE: PURP) has seen its share price decline by 50% in the last 12 months. A slowdown in the housing market has caused investors to become increasingly cautious despite the continued transition of the estate agency industry towards online.

After such a major fall, could the stock post a successful recovery? If so, is it worth buying alongside another property-related stock which released a positive update on Wednesday?

Improving performance

The company in question is developer and constructor of multi occupancy property assets Watkin Jones (LSE: WJG). It released a trading update which stated that its performance in the year to 30 September 2018 has been slightly ahead of expectations. It has been able to make progress on forward sold student accommodation developments, with it completing all 10 schemes that were scheduled for delivery in the period.

Demand among institutional investors has been strong, while its performance in the build-to-rent sector has been impressive. It has signed agreements for major developments in Reading and Wembley, while it has a stable development pipeline over the medium term.

With Watkin Jones trading on a price-to-earnings (P/E) ratio of 12.7, it seems to me to offer good value for money. Given that the stock is due to post a rise in earnings of over 10% in the current financial year, it could offer capital growth potential – especially since the build-to-rent sector is forecast to grow significantly in the coming years.

Growth potential

As mentioned, it’s been a difficult period for Purplebricks. A lack of activity in the housing market seems to be causing investors to become increasingly cautious about the company’s prospects. Although it is expanded internationally, the UK remains a key market for the business, and Brexit could lead to further challenges in the near term if consumer confidence remains weak.

While there could be further falls in the company’s valuation, its long-term potential remains high. The estate agency industry is undergoing a period of significant change which is likely to see an increase in the popularity of lower-cost, online options among house-sellers. As people become increasingly comfortable with using digital opportunities for areas such as retailing and communication, it seems likely that they will be more open to listing their home online.

With Purplebricks having a strong position in the online estate agency arena, it seems to be well-placed to capitalise on a possible tailwind over the coming years. And with the business due to move into profitability next year, investor sentiment could pick up to some degree over the medium term. While still a volatile and risky share to own, I think its growth potential seems to be high despite its share price fall over the last year.

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But looking ahead, the company appears to offer good value for money and investment potential. However, it’s not the only stock which could be worth buying at the present time, with a smaller company releasing positive news on Tuesday.

Growth opportunity

Watkin Jones (LSE: WJG) is a UK developer and constructor of multi-occupancy property assets, and it released an investor update on Tuesday. It has exchanged contracts to acquire a site in Wembley, benefiting from an existing planning consent for a 599-bed student accommodation scheme. This will be developed by the company for delivery in time for the 2021/22 academic year. The company has also entered into a development agreement with the vendor to deliver 300 build-to-rent apartments in an adjoining site. They are set to be completed in March 2021.

The development potential of the business has increased significantly following the acquisitions. It is expected to post 7% per annum earnings growth over the next two years, which suggests that it is delivering on its strategy. With a price-to-earnings (P/E) ratio of around 14, it seems to offer good value for money which could help to improve its share price performance after a disappointing year. In the last 12 months, the Watkin Jones stock price is down by 10%. But with what seems to be a positive outlook, its total return potential seems to be high.

Improving outlook

The Standard Life share price could also offer an improving future. As mentioned, it has underperformed many of its sector peers in the last year at a time when investor sentiment towards the asset management sector has been generally positive due in part to continued global GDP growth potential.

The company, though, is in the process of restructuring as it seeks to build an improved business model for the long term. For example, it has recently announced the sale of its insurance business, while it seeks to deliver on the synergies which were a major part of its recent merger. And while client losses have been disappointing in recent months, the prospects for the business seem to be improving. It is due to record a rise in earnings of 8% in the next financial year. This suggests that investor sentiment could improve over the medium term.

With a price-to-earnings growth (PEG) ratio of 1.7 and a dividend yield in excess of 7%, Standard Life Aberdeen appears to offer excellent value for money. While its shares have disappointed in the last year, a return to their recent high of 445p seems to be on the cards over the next few years.

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Peter Stephens owns shares of Standard Life Aberdeen. 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 us better investors.

However, I was running the rule over his Woodford Income Focus Fund again the other day and couldn’t help but be concerned by some of its names. Saga (LSE: SAGA) is one such stock I’m far from convinced by right now.

Shaking lower

At face value, Woodford looks like he might well be onto a winner, however.

According to City consensus, the FTSE 250 insurer is expected to print a 1% earnings decline in the year to January 2019. This is clearly no reason for wild celebrations, but it does mark a step in the right direction from the predicted 6% decline for last year. And Saga is expected to return to growth with a 2% profits rise next year.

With the number crunchers predicting a steady medium-term outlook, Saga, helped by its robust balance sheet, is expected to keep dividends marching higher despite this anticipated profits turbulence.

An 8.9p per share reward is forecast for last year, and this is expected to rise further, to 9p and 9.2p in fiscal 2019 and 2020, respectively. Consequently, share pickers can enjoy spectacular yields of 7.7% for this year and 7.8% for the following period.

But I’m more than a little perturbed by Saga’s investment outlook in the wake of December’s chilling profit warning which sent shareholders flocking to the exits. The FTSE 250 business has been shaken by rising competitive pressures in recent times and these look set to worsen, putting sustained pressure on the broking division’s margins.

Some would argue that a forward P/E ratio of 8.9 times more than bakes in these troubles. I’m not convinced, however, and wouldn’t be surprised to see Saga’s share price plunge again.

A better Woodford pick

I would be far happier splashing out on Watkin Jones (LSE: WJG), instead.

Like Saga, the student accommodation provider is favoured by Neil Woodford and, in my opinion, looks to be in better shape to meet broker expectations for chunky dividends. Watkin Jones continues to busily expand, cottoning on to favourable dynamics in the market. It currently has a development pipeline of above 9,800 beds, of which 8,300 have already received planning consent.

City analysts are forecasting earnings growth of 8% and 6% in the years to September 2018 and 2019, respectively. And these figures lead to predictions of dividend expansion from 6.6p last year, to 7.4p this year and 8p next year, meaning yields for these years stand at 3.8% and 4.1%.

An ultra-low forward P/E ratio of 12.8 times underlines Watkin Jones’s brilliant appeal, too.

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Royston Wild 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 us better investors.

To help you find new income investment ideas, I’m looking at two high-yield dividend stocks which have caught my eye. Both stocks are held by high-profile fund manager Neil Woodford.

This could be safer than housing

If you’d like some exposure to UK property but are concerned about the housing market, student accommodation specialist Watkin Jones (LSE: WJG) could be an ideal alternative.

The Watkin Jones share price rose by nearly 4% in early trade this morning after confirming it’s on track to meet full-year expectations. All of the student developments due for delivery by summer 2018 have now been pre-sold to landlords, as have some of those due for completion by summer 2019. In total, the company has secured planning approval for over 8,300 ‘beds’ from its pipeline of 9,800 beds.

Watkin’s build-to-rent housing business is also growing. The pipeline of sites with planning approval has risen to 700 homes during the six months to 31 March. The firm now expects to build 1,500 homes over the next five years.

Why I’d buy

The shares have fallen by about 15% since mid-January, when chief executive Mark Watkin Jones announced plans to stand down after 15 years in charge.

I’m not too concerned by this. His departure is being carefully managed and he intends to remain available to the firm for advice. I think the weakness we’ve seen so far this year could be a buying opportunity.

Unlike conventional housebuilders, this business is focused on the more buoyant student accommodation sector, which should provide stable long-term demand. Alongside this, the company builds houses for large rental landlords, another area where demand is growing.

Taken together, I expect these operations to provide fairly reliable profits. And with the shares now trading on just 12 times forecast earnings and offering a 4% dividend yield, I believe this stock deserves a buy rating.

A reliable 7% yield?

A dividend yield of more than 6% is often seen as a sign that the payout might be cut. But accident management group Redde (LSE: REDD) has maintained a payout above this level for several years without problems.

The group’s shares currently offer a forecast yield of 6.9% for the year ending 30 June and of 7.3% for the following year.

One of the reasons for this strong growth is that the company’s operations generate a lot of free cash flow. Since Redde started paying dividends in 2014, its payout has been covered by surplus cash every year.

The firm’s operations include running a courtesy car fleet of nearly 10,000 vehicles and providing legal services such as compensation claims to drivers involved in collisions. Although the legal side of the business has been affected by regulatory changes, profits seem to have remained stable.

Looking ahead, analysts expect Redde’s earnings to rise by about 7.5% to 12.1p per share this year. The dividend is expected to rise by 11% to 11.8p per share.

The group’s track record suggests that these figures may be achievable and sustainable. Trading on a P/E of 14 with a prospective yield of 6.9%, I’d rate Redde as a buy.

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A buying opportunity?

Shares of specialist property developer Watkin Jones (LSE: WJG) fell by 6% this morning, despite the group reporting a record set of full-year results with a strong outlook for the year ahead.

What may have triggered this round of profit taking was the news that Mark Watkin Jones, the group’s chief executive, has decided to step down after 15 years, “for personal reasons.”

Mr Watkin Jones has transformed the firm from a building contractor into a specialist developer of student and buy-to-rent accommodation. It’s understandable that the market might be nervous about his replacement, but I suspect this sell-off will quickly reverse.

Strong numbers

Revenue rose by 13.1% to £301.9m last year, lifting the group’s earnings by 12.9% to 14p. The fact that revenue and earnings rose by almost equal amounts tells us that margins remained broadly flat, which is good news.

Cash generation was also strong, and the group’s net cash balance increased by 27.3% to £41m. Shareholders get a 10% dividend hike, giving a full-year payout of 6.6p per share. That’s equivalent to a yield of 3.1%.

Clever strategy

The company’s decision to focus on student accommodation and build-to-rent property looks wise to me. Both types of property are in strong demand by institutional investors with long-term investment goals. Many of the company’s properties are pre-sold, reducing risk and borrowing requirements.

I’d also expect this type of property to be largely decoupled from the regular housing market. So if that market slows or the Help to Buy scheme is cut back, Watkin Jones sales might remain fairly stable.

This success hasn’t gone unnoticed by the wider market. The share price has doubled since its flotation in 2016. But with earnings expected to rise by 10% this year, I think the 2018 forecast P/E of 14.3 still looks quite reasonable.

Another opportunity

Doorstep lender Morses Club (LSE: MCL) caught a lucky break last year. With FTSE 100 rival Provident Financial in a state of turmoil, Morses noted an opportunity and accelerated its plans to expand into new territories. Reports suggest it recruited many former Provident agents, along with their customer lists.

This opportunistic move caused the group’s customer numbers to rise by 12.6% to 233,000 during the six months to 31 August, while the net loan book surged 16% higher, to £65.2m.

The only slight disappointment was that impaired loans as a percentage of revenue rose 22.5% to 26.6%. The company says this is still within its target range, but in my view it’s a substantial increase. I’ll be keeping an eye on this going forwards.

Steady growth

The greater costs of growth and impairments last year are not expected to prevent Morses Club from delivering earnings growth for the year ending 25 February. Consensus forecasts indicate earnings per share growth of around 6%, with a stronger 15% growth pencilled in for next year.

These forecasts leave the stock on a forecast P/E of 11.5 for the current year, with a prospective yield of 5.2%. Morses’ performance to date suggests to me that this could be a profitable time to buy.

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