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B&M

General discussions about growth strategies which focus primarily on investing for capital growth
dealtn
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B&M

#426502

Postby dealtn » July 10th, 2021, 5:45 pm

funduffer wrote:I have some dividends to re-invest and am scanning for top-ups or new shares. I am not really attracted by the usual suspects, although I might just top-up Imperial Brands if I can forgive them their recent cut.

I came across B&M European Value Retail S.A. (ticker is BME). This company owns the many and growing B&M stores around the country, as well as similar stores in France called Babou, and Heron foods.

They are in the FTSE 100, market cap is £5.45Bn, and their yield before specials is 3.17% (just above that of the FTSE 100 at 2.95%). The yield with specials is 11.43%.

The dividend (without specials) has a compound growth rate of 29% over the last 5 years.

Their policy is a payout ratio of 30% to 40% of nett income, which seems pretty conservative.

I can't help feeling that this is an emerging HYP company in the retail sector, which is popular and will continue to grow.

I have shunned retail for several years (just holding Sainsbury's), but I am tempted to buy a modest stake in this.

Has anyone else looked at BME?

FD


Yes about 5 years ago. My daughter first got me intrigued in them as she loved the shop. I'd never heard of them as a listed company and discovered their European roots and growth potential.

Roughly tripled in price since then and a dividend of about 5p a share more has more than tripled, plus specials, for those that consider only income important.

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