3 FTSE Shares Hitting New Highs

Published in Investing on 12 December 2012

Dechra (LSE: DPH), Direct Line (LSE: DLG) and TalkTalk (LSE: TALK) are powering up.

The FTSE 100 (UKX) is edging ever closer to its 52-week high of 5,989 points, today putting on another 13 points to reach 5,938. That's another in a recent string of nine-month highs, with just 51 points to go to hit that magic 12-month top -- what a nice Christmas present that would be for investors.

Some individual constituents of the various FTSE indices have been flying, too. Here are three hitting new highs:


Shares in Dechra Pharmaceuticals (LSE: DPH) have been storming on up of late, hitting a new 52-week closing high of 635p yesterday, falling back a little today to 630p. The new high took the shares up 43% from their year-low of 444p set in May.

First-half results in September were strong, showing pre-tax profits up 17%, bringing in double-digit growth for the veterinary care specialist for the ninth consecutive year. Full-year forecasts suggest a 24% rise in earnings per share, with the shares on a forward price-to-earnings (P/E) ratio of around 16, which doesn't seem stretching for a share with this kind of growth.

Direct Line

Direct Line (LSE: DLG) continues its post-flotation climb, closing at a high of 206p yesterday, before retreating just a penny to 605p at the time of writing. That's 13% up on the flotation price, and already a nice earner for those who took the risk during such uncertain economic times.

Forecasts for the year to December suggest a dividend yield of 4.2% and, if optimistic estimates for 2013 come off, we could be looking at 6.2% next year, so this could be the start of long-term rewards for shareholders.


The third of our trio today, telecoms provider TalkTalk (LSE: TALK), also reached a 52-week record close, of 224.9p yesterday, and is still at that price as I write. TalkTalk shares are now up 89% from their February low of 119p, which is a pretty substantial movement for a £2 billion company.

And though forecasts suggest an 11% fall in earnings for the year to March, they still predict a dividend yield of 4.7%, with an earnings recovery and further dividend growth pencilled in for the following year.

Finally, useful daily gains from shares can all play their part in making you your first million. the real secret to becoming rich from shares is simple long-term investing in fundamentally sound companies, and letting steady growth and dividends power your wealth upwards.

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> Alan does not own any shares mentioned in this article.

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