You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Compass

Written by:
Graham Spooner, investment research analyst at The Share Centre, picks the world's largest contract caterer, Compass, as stock of the week.

For those unaware, Compass is the world’s largest contract caterer, providing food and other services to clients in 50 countries. Its customers are spread across workplaces, schools and colleges, hospitals, leisure facilities and remote environments. It also runs coffee shops, vending machines and bakery outlets.

We’ve picked it as this week’s share tip of the week because the group is seeing a boost from a healthy new contract pipeline combined with the group benefitting from the trend by companies to outsource catering in order to cut costs. Moreover, investors should also appreciate that it is currently experiencing good sales growth in some of its biggest markets, particularly America and some emerging market operations

The defensive nature of the business is one of its main attractions because it is less likely to be susceptible to economic downturns. Worth noting is that a present, Compass looks financially sound and is generating enough cash which enables it to pay special dividends.

The dividend yield is 2.13% and is forecast to grow above inflation.

We recommend the FTSE 100 company as a ‘buy’ for long term, lower risk investors seeking a balanced portfolio.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week