Berkeley Group Holdings (BKG) shares saw a slight rise after they announced an interim dividend of 51.76p per share to be paid on 15 September 2017.
Will some brokers predicting a 5.41% yield through to 2019.
The stock currently yields 4.94%.
This is quite a turnaround for the company that just a short while ago was seen to be up the creek without a paddle, following the Brexit vote investor were worried and the stock price saw a significant drop.
So significant that Berkeley Group was one of the worst performing stocks of 2016, losing 21% in value, while Barratt Developments (BDEV) suffered similar losses.
The fall in share price was brought about by concerned investors that believed that the slow-down in the economy as an after effect of Brexit would more than likely be a catalyst to a sizable reduction on the amount of UK properties being built, and property prices would fall.
Berkeley Group did not take it lying down and as a result have recovered most of their losses this year, and things are looking up for the company. Berkeley is up 33% year to date.
Elsewhere in the sector, Persimmon (PSN) is up an impressive 45% year to date, Barratt Developments (BDEV) has risen 33%, Redrow (RDW) and Bellway (BWY) have risen 36% and 30% in value year to date.
Eric Moore, manager of the Miton Income fund, says that this run cannot continue much longer.
“There are signs that consumption growth is fading. House prices are much too high, but if they weaken it’s another blow to the embattled consumer,” he explained. “We have very little exposure to the domestic UK economy as a result: no food retailers or property companies and very little in housebuilders, leisure and general retailers.”
Andrew Jackson fund manager of Miton UK Value Opportunities, owns Bellway – but remains “somewhat cautious on the prospects for these businesses”.
According to the latest Capita report, consumer goods and housebuilders performed better than expected in the first half of 2017, with every company raising its pay-out.
Consumer goods and housebuilder stocks paid out £4.8 billion in the three months to the end of June an annual increase of 8%.
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