What I’m Doing
I am hoping to pick up some more shares in Carillion (ticker: CLLN on the LSE). I already own 107 shares and am hoping to get some this month, before they go ex-div, which I think is in early September.
Their price had gone a bit haywire recently, there were potential takeover/merger talks going on, but it seems to be that Balfour Beaty are holding out for a better deal, CLLN’s price shot up and down by around 10-15% in a day or two. Anyway, that is good for me, as the shares are now around 10% less than what I paid for them, so I can hopefully pick them up for less than last time.
So, who the hell are Carillion? Well, you may have seen their name around boards sectioning off building work at railway stations and that sort of thing. They are in construction and support services, have a diversified business, and are globally diversified too.
Why I Like Them
Their fundamentals are pretty good. They have a <15 PE and a highish dividend, so they pass my strategy methods. They have increased their dividend for several years in a row, which also passes my methods, although their operating profit was down a bit last year so their recent dividends have been slightly under the rate of inflation.
They’re a useful business and a slightly ‘boring’ business because of that. By boring, I mean necessary, not a fad, not the kind of thing you take wild speculations on, etc. This also passes my methods.