As we start a fresh week, it’s important for me to try to be as informed as possible. Part of this relates to understanding what’s expected on the stock market. By keeping up to date with the performance of my FTSE 100 shares, I can make any needed changes. Knowing the events of the upcoming week also helps me to potentially identify some stocks that can go on my watch list. Here’s what I’m watching for this week.
Upcoming earnings
Most companies have reported full-year 2021 earnings, but not all. This week there are several FTSE 100 and FTSE 250 companies that are releasing results. Those that I’m going to be focused on are as follows: on Tuesday Carnival and Kingfisher; On Wednesday Saga; on Thursday Next; and finally Smiths Group on Friday.
Each of the releases will likely impact the respective share prices. For example, investors will be keen to see how Carnival is shaping up and what the projected outlook is for the coming year. With the news last week about the problems at P&O ferries, the sector as a whole is having a difficult time. Therefore, I’ll be paying close attention to the report.
FTSE 100 shares such as Kingfisher and Smiths Group are also of interest to me. Over the past two years, the Kingfisher share price is up 136%, buoyed by the surge in property related home projects during the pandemic. However, will this continue for 2022? Hopefully the management team will provide some guidance.
FTSE 100 volatility from Ukraine headlines
The sad situation in Ukraine is likely to continue to impact the stock market. This has already been seen in March, with the FTSE 100 dropping to levels around 7,000 points a fortnight ago. The index has rallied, and did well last week as negotiations appeared to make progress between the two sides.
If more positive signs come this week, the FTSE 100 could move sharply higher. Higher volatility in either direction doesn’t have to spell bad news for my investments. As a long-term investor, if the index does take a tumble then I can buy FTSE 100 shares in companies I believe in at discounted levels.Â
Dividend payments
This week, both Unilever and BP are paying out dividends to shareholders. If I don’t own shares in those companies already then it’s too late for me to buy and get the dividend.Â
However, it does draw attention to the fact that dividend stocks are an important part of my portfolio. The FTSE 100 average dividend yield has been climbing in recent months, currently sitting at 3.63%. Given the fact that the current base rate is still only 0.75%, I can find some good options to make my spare cash work harder.
With that in mind, I can consider some companies that are paying dividends shortly, but haven’t passed the ex-dividend date yet. This date reflects the last day that I have to buy shares in order to receive the future dividend. Next week, FTSE 100 shares including British American Tobacco and Pearson will go ex-dividend.