But yield is not everything: I also look for a sustainable market model and sound corporate management.
So, after a year, how is it doing?
- new business profitability continues to improve in most businesses
- the target for cost reductions has been raised although there will be higher expected costs to complete the process
- the capital position remains robust
- dividend plans are confirmed
Resolution continues to offer a stunning dividend yield of over 8.5% - putting it at the top of the FTSE 100 - with a forecast yield of nearly 9%. Dividend cover is a solid 2.5 with a p/e of just over 10.
So, although Resolution has hit some problems, this still looks like a company with a lot of future in it: so I am happy to continue to HOLD.
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.