Please find below some background information on one of our core holdings Scottish & Southern Energy, rated as a solid hold.
The UK’s second largest energy supplier is currently yielding close to 6% (which management aims to grow by 4% p.a.) and is trading on 10.4x earnings, a substantial discount to the sector (14.97x) and the wider market. Its commitment to renewables (SSE owns almost half of the UK’s total renewable generation capacity, including its largest wind farm) could also make it a future takeover target for one of the European utility giants.
The stock trades XD on Wednesday meaning that investors who buy the shares on this date will lose the right to receive the 46.2p final dividend payout. The stock will theoretically fall by this amount, however investors who buy it before this date will pocket the dividend.