3 FTSE Shares Hitting New Highs

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LONDON -- After a few days of mild falls, the FTSE 100 (INDEX: ^FTSE) turned back up today before settling in all but unchanged from yesterday, up a fraction of a point to 5,805. Today's move seems to be a reaction to the welcome news that the U.K. economy has risen out of recession in the three months to September.

The FTSE 100 is still a bit down from its 52-week high of 5,989 points, but there are members of the various FSTE indexes reaching new highs every day.

Associated British Foods (ISE: ABF.L)
Associated British Foods has had a great year and is currently approaching a 52-week high again. Today the shares reached 1,374 pence, just a tiny bit below that high point of 1,378 pence, and they're up about 25% over the past 12 months. That's a pretty good rise for an 11 billion pound FTSE 100 company.


As things stand, the City is expecting a full-year dividend of about 2% from shares on a price-to-earnings ratio of about 15, so the undervaluation that has been there for most of the year looks to be mostly out.

Balfour Beatty (ISE: BBY.L)
Balfour Beatty is similarly trading up near its 52-week high of 316 pence as the construction business continues to enjoy a good recovery. The firm, which provides engineering and construction services, has seen its shares gain nearly 50% from their 52-week low of 214 pence set in November last year.

In this case, forecasts suggest a dividend yield of more than 4.5% with the shares on a low P/E of about 8.5. And the dividend should be more than twice covered.

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Michells & Butlers (ISE: MAB.L)
The recession hit the booze business quite hard, but Michells & Butlers has been having a cracking year. The shares hit a new 52-week high of 330 pence today, taking them up around 35% over the past 12 months.

The firm's trading update from the end of September suggested a reasonable outlook, and we should hopefully be seeing a return to dividends next year.

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The article 3 FTSE Shares Hitting New Highs originally appeared on Fool.com.

Alan does not own any shares mentioned in this article. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors.

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