Redrow positioned to keep dividends coming

Redrow (RDW) managed to better withstand falling margins in the housebuilding sector than most of its peers during the past 12 months. Its ability to keep a tight rein on costs means it should continue to show resilience, while modest growth and an attractive yield are forecast. True, Redrow’s margins are a bit lower than some of its rivals’,but given the headwinds housebuilders face, we think investors should be willing to put a higher price on resilience. We therefore see attractions in the discount Redrow’s shares trade at compared with the sector average