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

Stock of the week: Saga

Written by:
Graham Spooner, investment research analyst at The Share Centre, picks Saga as stock of the week.

In its latest results, Saga, which offers an array of products and services exclusively for the over 50s, including insurance, holidays and breakdown cover, reported a 5.6% increase in underlying profit to £187.4m. Interested investors should appreciate that the dividend was also raised by 18.1% to 8.5 pence. Furthermore, the CEO highlights the proposed launch of a membership scheme, Saga Possibilities, aimed at its core group of customers who buy premium products, are loyal to brand and who often buy multiple products.

Investors should note that management are keen to move the company away from its main insurance and holiday services to other areas, such as taking commission from third parties who will use the brand name, new services such as SagaMoney and a retirement village, as well as cross-selling its products

Although we are gearing this recommendation for income seekers due to its prospective 4% yield, the potential for the group to continue to benefit from the increasingly important over 50s market and its brand name will hopefully lead to some steady long-term growth. We therefore recommend this stock as a ‘buy’ for investors willing to accept a medium level of risk.

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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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