Monday, 25 May 2015

Whitbread is my idea of a fabulous FTSE 100 Dividend stock

I spend my time reading the latest trading and investment news about FTSE 100 dividend stocks like Whitbread (WTB). This is a much more expensive FTSE 100 dividend stock than those I currently own.  I am actually addicted to visiting Costa Coffee and of course Whitbread owns Costa as well as Premier Travel, one of my favourite hotels to stay in when I visit Glasgow or Manchester. When I like a company I want to own part of it so it is only natural that I want to own some shares.  Not surprisingly I am sitting in my local Costa Coffee right now enjoying a Caramel Crisp bun. It is extremely busy, another reason why I want a piece of it.

The only downside is that the shares are extremely expensive. They are currently priced at around £52 per share, which means I would need around £540 to buy 10 of them counting trading costs. They actually reached a high of £54.75 per share last month. I have them on my FTSE dividend stocks watch list for now and should a dip in price occur I may splash out.

The latest Whitbread share news states that Credit Suisse has set a target price for the company at £62 per share. This is due to the fact that they expect Whitbread to achieve long term annual growth estimated at 13% over the next 5 years. A growing company means rising share prices and in lots of cases rising dividends.

The ex dividend date is actually this Thursday so if you want a share of some dividends you need to buy in now. To be honest I am not sure I will have the funds to purchase this time around.  For those that are interested the Whitbread dividend payment is 56.95 pence per share giving a total dividend of 82.15 pence per share. I can see that from studying the dividend charts that the dividend payment has been growing these past few years. This is another good sign of a company making profits.

1 comment:

  1. Thank you for your analysis of WTB. It's always great reading a blog from other countries as you are exposed to different investing ideas and corporations that you normally would never hear about. Keep that dividend snowball growing.


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