A highly attractive dividend scheme
Burberry Group plc (LON:BRBY) is an exciting dividend play in my opinion, having steadily built its dividend in recent years — indeed, it hiked its total 2012 dividend 25% to 25 pence. And the company is expected to raise the payout to 28 pence in 2013 before increasing it to 32 pence and 37 pence in 2014 and 2015, correspondingly.
The dividend for this year and next carry a yield below the current 3.3% FTSE 100 average, with figures of 2.6% and 2.9% projected, although the firm’s dividend policy could well drive it above this threshold further out. In addition, 2014 and 2015 dividends boast coverage well above the generally regarded safety watershed of two times and are covered 2.4 times for both years.
The article Should You Buy Burberry Today? originally appeared on Fool.com.
Royston Wild does not own shares of any companies mentioned. The Motley Fool has recommended shares in Burberry.
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