Neil Woodford buys ITV shares

Neil Woodford ITV shares

I’ve written about ITV (LON: ITV) (ITV.L) shares quite a bit recently.

I listed the company here as a FTSE 100 company with a high dividend yield, and also here as a dividend stock idea for October.

Regular readers might also know that I bought some ITV shares myself in late September, as the 4.7% dividend yield and low P/E ratio of 11.2 seemed quite attractive in my view.

Well it appears that I’m not the only investor who bought ITV shares in September. Reading Neil Woodford’s September portfolio update today, I learned that the portfolio manager also bought ITV shares last month, for his Income Focus fund. Great minds think alike?

Here’s what Woodford had to say about the purchase of ITV:

In terms of portfolio activity, we introduced two new holdings in September. ITV is a highly-cash generative business with a good track record of returning excess cash to shareholders through special dividends. Its valuation has started to look increasingly attractive recently, however, as the market has focused on the perceived structural threat posed to the business by digital media. We are not complacent about the way that global advertising trends are evolving but, in our view, the risks are now more than adequately reflected in the share price. These worries, coupled with the company’s UK focus, have therefore created an attractive entry point.

It appears that Woodford agrees with my stance that, with sentiment towards advertising related stocks quite low at present, ITV offers value right now.

Disclosure: Edward Sheldon, CFA owns shares in ITV.  

This article is provided for general information only and is not intended to be investment advice. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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