City File: Steady Dalgety

THERE was a slight bout of jitters last week ahead of Monday's interim figures from Dalgety, which could show at least a notional increase in the dividend to bring the yield well above the 5 1/2 per cent mark. Yet there are still investors who want this essentially defensive stock in a risk-oriented market. At 467p, 11p down on the week, the shares are still within 10 per cent of their 1992-3 high.

But, as Alan Erskine of NatWest Securities puts it: 'Perversely, having finally established its defensive credentials, the Dalgety share price now has to contend with the prospect of an economic recovery.' However, its sheer breadth - in agri- business, snacks, petfoods and flour milling - combined with a tight grip on costs and an eye for opportunistic buys, makes it a banker for the cautious, yield- conscious investor who is wary of over-valued 'recovery stocks'.