Three big supermarket players - Tesco, Sainsbury's and Morrisons - are Footsie hits
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The supermarket groups Tesco, Sainsbury's and Morrisons have climbed to the top of the list of highest-yielding FTSE 100 shares, according to Banc De Binary.
The Footsie's average yield stands at 2.97 per cent, while the three supermarkets in the index yield more than 5 per cent. That puts all three among the Footsie's top 10 yielding shares.
But the three have seen their share prices fall markedly this year, making them look relatively attractive to yield seekers.
Banc De Binary calculates that the falls, combined with rising dividends, have seen the average yield on the Footsie's supermarkets rise by 27 per cent in just six months.
Oren Laurent, of Banc De Binary, said: "There's been a lot of talk about how price cuts in the so-called supermarket wars will affect the financial performance of Tesco, Sainsbury's and Morrisons.
"But their resulting falling share prices have pushed up their yields, which has made them a lot more attractive to income investors who are happy to take on more volatile share prices. Five per cent yields that are well covered by earnings are hard to find among blue-chip shares."
However, anyone taking a punt on the shares needs to be aware of the high risk that prices might yet fall further.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments