Shares in British Gas owner Centrica have outperformed the stock market after falling last year following a profits warning, said the Sunday Telegraph.
This trend is expected to continue as price cuts earlier this year appear to have eased the political pressure on the sector. Higher wholesale power prices seem to be making up for the mild winter, while it is also generating more of the energy it sells itself, which protects its profits from swings in commodity prices. After last year’s falls, Centrica shares are yielding a very attractive 5.3%, rising to 5.7% and the valuation is cheap by historical standards. The shares are rated a buy for both income and growth.
The Mail on Sunday highlighted International Public Partnerships as a solid, long-term bet. INPP, an infrastructure fund, offers generous dividends and predictable growth in an uncertain world, it said. The group is raising £180million on the stock market, offering new shareholders an opportunity to buy stock at an attractive price. Listed on the stock market in 2006 and registered in Guernsey, INPP is invested in more than 100 projects in the UK and abroad, including schools, hospitals, court houses and underwater cables to link offshore windfarms.