Yields high and PEs low

Private client managers and stock brokers say the market is throwing up a large number of income bearing stocks offering visible and dependable returns. Many stocks, according to BWD, Killik & Co and Brewin Dolphin, three of the UK's large private client fund managers, are now available at low price to earnings ratios while yielding more than 5% and displaying strong growth opportunities. Jo O'Donnell, private client manager at BWD Rensburg, says in addition to providing a good income, yield is also a useful way to value stocks. He said: 'Yield is more reliable than earning-based val...