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magazineWhy we still like the look of Law Debenture
Law Debenture (LWDB) 610p
Gain to date: 5.5%
Original entry point: Buy at 578p, 21 March 2019
Our ‘buy’ call on Law Debenture (LWDB) is in the money even after this unusual trust got caught up in the recent sell-off.
We’re staying positive following full year results (27 Feb) which revealed an impressive net asset value (NAV) total return of 17.9% for 2019, with the share price total return of 24.5% handily outpacing the wider UK stock market.
A trust with a twist – in addition to a portfolio of stocks the company also provides services to corporate trust and pension trustees – Law Debenture provides an added element of diversification as performance isn’t solely reliant on the direction of the stock market.
Besides a 25% increase in portfolio income, Law Debenture’s Independent Professional Services (IPS) business enjoyed another year of good growth, supporting a step change in the final dividend which was lifted 50% to 19.4p. The trust will also increase the frequency of dividends to quarterly payments.
Portfolio managers James Henderson and Laura Foll continue to find attractive opportunities among unloved UK domestic stocks, while chief executive Denis Jackson sees growth potential across the IPS businesses as a result of increased market focus on ESG issues.
SHARES SAYS: We remain bullish about Law Debenture for its dividend growth, defensive attractions, low ongoing charges and long-term record.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
