It’s been a tale of two halves for the FTSE 100 in 2019. After setting off like a train and reaching highs of 7,700 points in July it seemed only a matter of time before new highs would be reached.
Heavy risk-aversion thereafter pushed the index to within a whisker of falling through the 7,000-point barrier as fears over the state of US-Chinese trade talks worsened and rounds of patchy economic numbers from key regions emerged. The Footsie’s picked up more recently but this recent weakness means that the index is still up just 7.4% from the start of the year.
Game on
Not a bad result, sure. But compare this with the 52.4% rise that Games Workshop Group (LSE: GAW) has put in since the turn of January.
The retailer has gained a loyal following from share investors thanks to its ability to sail above the turbulence facing the broader UK retail sector and to keep on growing revenues. It’s also risen on the back of strong trading in its international marketplaces.
Full-year results in August showed revenues soar 16% in the year to June 2, 2019 and trading has remained encouraging since then, Games Workshop noting last week that trading remains in line with expectations while cash generation has also remained “strong.”
The FTSE 250 firm is a formidable cash creator and, conducive to its strategy to hive off surplus money to its shareholders, announced plans to pay a 35p per share dividend. Current City projections suggest a total 151p per share full-year payout for the current fiscal period, one which yields an inflation-mashing 3.2%. Though I reckon this projection could be significantly upgraded as the year progresses.
In my opinion, Games Workshop is a top share for both growth and income investors today. Efforts to ramp up its international expansion programme should set it on the path for terrific profits expansion in the years ahead and I reckon it’s a terrific buy for ISA investors.
The almost-6% dividend yield
That said, those stock pickers on the hunt for big yields today might want to pay Marston’s (LSE: MARS) close attention instead. With City consensus suggestive of another 7.5p per share total dividend in the fiscal year to September 2020 the pub operator carries a monster 5.9% forward yield.
This particular FTSE 250 firm has surged following the takeover of industry rival Greene King by CK Asset Holdings in mid-August. It’s now up 35% since the turn of the year, but despite this, it still trades on a low forward P/E ratio below the bargain-basement benchmark of 10 times and I reckon this gives it plenty more scope to rise.
Trading at Marston’s may have been a bit more disappointing of late, like-for-like revenues rising 0.5% in the 42 weeks to July 20. However, this result was crimped by poor weather in the spring. In reality, the pub giant’s remained a resilient operator in tough trading conditions. And I am backing it to continue thriving given the scope of its ambitious estate restructuring drive, not to mention the immense popularity of its ales.