WH Smith – Newspaper Share Tips

WH Smith (SMWH) shares have been tipped in both The Telegraph and The Independent today. Not being one to miss out I made a small purchased this morning at an average buying price of 528.5p

They aren’t really a company I have been following closely, but I am a regular shopper at their store in my local town and it’s always busy in there. As an Amateur Investor, things like busy shops are signs I look for when making investment decisions in the retail area. Yes, it’s only part of the story, but would you really invest in the shares of a company whose shops aren’t alive with the sound of ringing cash registers?

The share price has been rising steadily since it dropped sharply in August, so much so that they are threatening the highs last seen in December 2009.

The preliminary results announcement made yesterday for the year ending 31 August 2011 showed “Further good profit and cash performance across the Group with full year dividend up 16%“.

The final dividend proposed of 15.3p is up 15% on the prior year. This gives a total ordinary dividend per share of 22.5p, a 16% increase on the prior year.

Forecast dividend for year ending August 2012 is 24.77p (according to The Share Centre), a yield of 4.69% based on my purchase price today.

So another share joins the Amateur Investor High Yield Portfolio.

What do you think of WH Smith? Are you a buyer of the shares?

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