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Bumper dividend for U and I
U and I (UAI) 219p
Gain to date: 9.5%
Original entry price: Buy at 200p, 11 January 2018
Property regeneration specialist U and I (UAI) is beginning to win over the market thanks to an encouraging set of full year results. As such the shares are now trading nearly 10% above our entry point in January.
The company has a portfolio of assets in London, Manchester and Dublin. It reported a record profit for the 12 months to 28 February
and this helped underpin a more than doubling of the total annual dividend to 17.9p, boosted by a special dividend of 12p.
The company maintained future guidance which is based on existing projects and could be improved by new project wins. There is a pipeline of potential developments worth a gross £7bn.
In a recent research note on the stock, newly-appointed joint house broker Liberum issued a price target of 280p. Analyst David Brockton commented: ‘The combination of visible attractive returns and an unjustified valuation discount enhances the share price upside.’
Based on his forecasts the shares trade on a 28% discount to the 305.9p net asset value predicted for the year ending February 2019, and yield 6.4%.