An early morning trade – Admiral

Despite Admiral announcing record interim results this morning (pre-tax profits grew by 27%, increasing half-year pre-tax profit to £160.6m from last year’s £126.9m), shares in the car insurer lost over 5% this morning.

Turnover jumped 53% to £1.1bn from £720.5m the year before.

The interim dividend was declared at 39.1p, up from 32.6p last year (ex-dividend date 28th September 2011, payment date 21st October 2011). Earnings per share improved to 43.3p from 33.7p last year.

The Admiral board decided to give every member of staff £1,500 in shares, worth over £8m in total.

I managed to buy in at 1,434.75p per share this morning (including Stamp Duty), so the interim dividend I will receive in September represents a yield of just over 2.7%.

The forecast dividend for the year ending 30th December 2012 is 98.54p (according to my Share Centre account) which would represent a yield of 6.87% based on my buying price today.

Another good addition to my High Yield Portfolio?

The shares have dropped to 1,423p while writing this blog entry, but as I wrote in a previous entry, I’m becoming less worried about daily share price fluctuations and more interested in investing for income.

Note: I was already a holder of Admiral, previous to becoming the Amateur Investor, at 1,556p per share, so the shares bought today are just over 120p “cheaper” than the last lot I purchased.

Update at 17:04 – Admiral shares ended the session down 182p at 1,353p (a fall of 11.86%). If they continue to fall I will be looking to buy more at around the 1,200p level.

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