The FTSE 250 stocks I’ve been buying since Brexit, by top income investor

Eric Moore, who runs the Miton Income fund, which has a yield of 4 per cent, has revealed for What Investment the two FTSE 250 stocks he has been buying for value.

 The FTSE 250 stocks I’ve been buying since Brexit, by top income investor

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The first company on which Moore is keen on pub company Greene King.

He commented that, ‘Greene King is a very well managed company, in the FTSE 250 it is a business that is as close to being a “buy and put into the bottom drawer” stock as you will find. You can own this and get the regular dividends for years and not have to worry about it. Societal trends are in its favour as people seem to cook less and eat out more, whilst there are fewer traditional pubs with “four blokes and a dog” at the bar, and more pubs doing food, which is what Greene King has been doing for years and is very good at.’

Read more: The FTSE 250 stocks I’m buying for value right now, by top income investor

The fund manager continued, ‘It is worth noting that during the last crisis Greene King’s business didn’t suffer, it wasn’t an area of spending on which people cut back. The company has a strong balance sheet and a good dividend record.’

For the year to the end of May 2016 Greene King recorded a profit of £189 million on a turnover of £2.073 billion. The yield is currently 4.1 per cent.

The second stock mentioned by Moore, but one he commented is more of a value share than a boring income stock, is N Brown, a clothing retailer.

Read more: Exclusive: The FTSE 250 stock that is ‘a world leader at what it does, and is very cheap right now’ by top income investor

He commented that, ‘the company is a catalogue business and targets the more mature market. The problem they may have is that a lot of the business is done on credit, and in that market, it may be that some of their customers have maxed out on the credit they can get, which would reduce their desire to buy extra items.’

But he continued, ‘the key is that as retail moves online, {this company} it has a much greater ability to move online, because it started out as a catalogue business, it doesn’t have stores. The shares have fallen a lot, but the demographic it targets is expanding.’

This company is the only retailer Moore owns in his fund. The company has a current yield of 6.9 per cent, and posted a profit of £72.20 million, on a turnover of £866 million, for the year to the end of February 2016.

The Miton UK Income fund has returned 31 per cent over the past three years.

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