4th March 2016
The London Stock Exchange has increased its full year dividend to 36p following a strong set of full year results.
The LSE share price has powered ahead over the past five years and the company is confident of further developments.
The London Stock Exchange (LSE), which is in ongoing merger talks with Deutsche Boerse, has indicated a 20% increase in its full year dividend to 36p per share.
This follows a strong set of full year results that saw operating profits increase to £499.9 million from £346 million.
Graham Spooner, investment research analyst at The Share Centre, is confident about the group’s prospects.
‘Looking ahead the group expects to make another £40 million in cost savings from the acquisition of Russell Investments and efficiencies from the upgrade of its platform. LSE said the case for merger with Deutsche Boerse is ‘compelling’ but made no mention of a potential rival bid from the owner of the New York Stock Exchange, which was reported this week,’ he said.
‘Investors should acknowledge that the share price has powered ahead over the last five years on the back of improving markets, leading to higher volumes of trading, new issues and, fund raising. The move into other areas of financial services has rewarded shareholders and the group remains confident of being well placed to develop further across their range of businesses and markets.’
However, he added that there was ‘a lot already baked into the price and subsequently we continue to maintain our ‘hold’ recommendation’. For those interested in the general financial sector, Spooner prefers St James’s Place for medium risk investors.