The top-ranking companies in our FTSE All Share Dividend Yield screen don’t have the most impressive yields available on the market. However, considering the demise of the LF Woodford Equity Income fund, our due diligence measures that undoubtedly screen out the very highest yielders seem especially prudent.
- The two FTSE All Share companies that once again pass all our tests are SSP Group (SSPG), who own travel food and beverage outlet concessions, and equipment hire firm VP (VP.).
- Of the shares that only pass seven tests out of eight, long term investors might choose to overlook those with market risk, if they are convinced of the underlying quality. That said, the companies failing the requirement for a beta of 0.75 or lower indicates more cyclical and less defensive characteristics.
- The companies that only miss the beta requirement include construction and regeneration company Morgan Sindall (MGNS), molten metal engineering specialist Vesuvius (VSVS) and leisure travel company Carnival (CCL). Given over-exposure to cyclicals might reasonably be considered as one of the core lessons from Mr. Woodford’s trevails, investors should think carefully about their risk and reward time frames.
