The week ahead: Vodafone, Burberry, Fevertree

Key updates from both blue-chip dividend kings and high-growth AIM shares are due in the coming days. 

Monday 21 January

Trading Statements

William Hill, BHP Group, K3 Business Technology, Premier Veterinary Group, Etalon

Tuesday 22 January

Trading Statements

Dixons Carphone, Halfords, Pets at Home, Cairn Energy, easyJet, IG Group, Accrol

AGM/EGM

European Investment Trust, Polo Resources, Keystone Investment Trust

Wednesday 23 January

Despite some grim data out of China, where Burberry Group (LSE:BRBY) does a huge chunk of its business, the share price has performed no worse that the wider market so far in 2019. Speculation around various methods of stimulus by the Chinese authorities and decent results elsewhere in the sector are clearly acting as a prop. 

• These retailers offer investors rich rewards 
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• Retail sector latest: Greggs, Ted Baker and an 11% dividend yield

Deutsche Bank analysts look for third-quarter sales of £724 million, in line with consensus estimates. Retail like-for-like sales growth is expected to moderate at around 2% following surprise 3% growth the previous quarter. Asia and the Americas are tipped to do better than Europe. 

Also expect updates on progress tightening up the business and product range.  

Source: TradingView (*) Past performance is not a guide to future performance

Trading Statements

Harwood Wealth Management, Marston's, Burberry, WH Smith, Brewin Dolphin, Wetherspoon (J D), Computacenter, AJ Bell, CYBG

AGM/EGM

Tharisa

Thursday 24 January

Trading statements

Benchmark Holdings, St James's Place, Fevertree Drinks, PayPoint, Daily Mail and General Trust, CMC Markets, Kier Group

AGM/EGM

RDI REIT

Friday 25 January

The sharp decline in value of Vodafone shares has been well documented, and just this week revisited prices not seen since November. A minor rally since is only mildly encouraging, underperforming the wider market by some margin. 

Understandably, investors could be getting the jitters amid concerns that the generous dividend could be cut for the very first time. Vodafone currently offers a prospective yield of almost 9% and the City is split on whether the payout is sustainable. 

• Vodafone: 80% share price upside and 9% dividend yield?
• Chart of the week: Is Vodafone now back in rally mode?

Management will likely use third-quarter results on Friday to give the market a steer both on the dividend and guidance for the full-year. Analyst widely anticipate a stable dividend of €15.07 for the year to March 2019.

To guarantee a consistent payout, look for a quarterly 20 basis-point decline in organic service revenue (OSR) growth and 2.2% dip in Europe versus minus 2.3% in the second quarter, says broker UBS. That could sow the seed for a recovery in fourth-quarter numbers.

Source: TradingView (*) Past performance is not a guide to future performance

Trading statements

Aberforth Smaller Companies Trust, Barr (A G), Vodafone

*Horizontal lines on charts represent levels of previous technical support and resistance. Trendlines are marked in red.