Shares in IG Group (IGG) jumped nearly 10 per cent in morning trading after the spread-betting specialist increased the dividend payout from 60 per cent of net earnings to 70 per cent. The move accompanied full-year results that saw revenue rise to a record high, even as low volatility remained a drag on growth.
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Chief executive Tim Howkins blamed a 25-year low in foreign-exchange volatility on the low and stable interest-rate environment and quantitative easing - although he noted that both these headwinds may change direction as interest rates start to rise. This would also improve the return on the £1.4bn IG holds in cash and other interest-earnings assets.