3 More Shares That Show This Bull Market Ain't Over

Updated

LONDON -- The markets have been flying high so far in 2013. While some think this bull market has just about run its course, these three stocks suggest that the charge is far from over.

Royal Dutch Shell
Oil giant Royal Dutch Shell is one of the bluest of blue-chip shares. You might expect, therefore, that it would have benefited from investors' rediscovered love for shares.

Not so. Share-shoppers today can fill up with Shell on a P/E of less than nine times forecast earnings. Even better, the shares in this super-safe dividend payer still yield far more than can be achieved on cash. Last year, Shell paid $1.72 in dividends from earnings of $3.82 per share. For 2013, brokers are forecasting $4.20 of earnings and dividends of $1.86. At today's price, that's a P/E of 8.4 times forecast earnings and a dividend yield of 5.3%. Further growth in EPS and dividends is expected in 2014.


Wm. Morrison Supermarkets
Supermarket Wm. Morrison Supermarkets has long been criticized for not offering online sales. Last week, Morrisons addressed this with the launch of an operation that builds on Ocado's technology and infrastructure.

At 280 pence, Morrisons' shares are available at 10.6 times last year's earnings. That seems reasonable for a company that is forecast to deliver little EPS growth in the next two years. And Morrisons' share price is currently getting considerable support from its forecast dividend yield of 4.5%.

If the market were awash with unabated ebullience, investors would be taking recent developments as a sign that Morrisons is about to enter a new golden age. That has not apparent in the share rating.

British Sky Broadcasting
Media company British Sky Broadcasting is trading at a discount P/E to the average FTSE 100 stock. That seems unfair when you consider how successful the company has been.

Five years ago, Sky reported revenue of about £5 billion. A dividend of 16.8 pence was paid to shareholders. Fast-forward to 2012, and annual revenue was close to £7 billion. After five years of increases, the dividend hit 25.4 pence per share.

Fears of a pay-TV price war with BT have damaged Sky's share price. From a 10-year high of 894 pence in March, the shares are 798 pence today. Sky is nevertheless expected to grow earnings and dividends this year and next. That puts the shares on a 2014 P/E of 13 with an anticipated yield of 4%.

Despite the market's recent rises, there are clearly some great yields still available. To help you find more of them, our analysts have been keeping tabs on one of the world's best income investors, Mr Neil Woodford. This man has a record of market outperformance that stretches back decades. To learn more about what Woodford has been buying, get the Motley Fool report "8 Shares Held By Britain's Super Investor." This analysis from our team of experts is 100% free and will be delivered to your inbox immediately. Just click here to start reading today.

The article 3 More Shares That Show This Bull Market Ain't Over originally appeared on Fool.com.

David O'Hara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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