Investors urged to ‘buy’ housebuilder Berkeley

4th December 2015


Investors have been advised to buy shares in Berkeley Group as the housebuilder remains on track to hit its three year targets.


The Share Centre investment research analyst Ian Forrest is confident about the group hitting its target of £2 billion of earnings over the next three years and first half results that see dividend payments increase.


‘First half results this morning from Berkeley Group see it on track to meet its earnings forecast of £2 billion in aggregate over the next three years. This has led to Berkeley announcing an enhanced interim dividend of 100p per share, above analysts’ estimates of 72.15p.


‘Investors should be aware that the group now plans to return a total of £16.34 per share, up from £13. With £4.34 already returned the remainder will be delivered evenly over the next six years.’


The company is confident that market conditions will continue to provide good underlying demand ‘in a stable operating environment’.


Forrest said Berkeley shares were suitable for ‘medium-risk investors seeking income due to the healthy and fairly secure dividend income, excellent prospects for housing demand in London and the South East, and a long track record of delivering for investors’.


He added: ‘After a strong rise in the share price after the general election we are advising investors to drip feed into the stock for now.’


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