Three big supermarket players - Tesco, Sainsbury's and Morrisons - are Footsie hits


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The Independent Online

The supermarket groups Tesco, Sainsbury's and Morrisons have climbed to the top of the list of highest-yielding FTSE 100 shares, according to Banc De Binary.

The Footsie's average yield stands at 2.97 per cent, while the three supermarkets in the index yield more than 5 per cent. That puts all three among the Footsie's top 10 yielding shares.

But the three have seen their share prices fall markedly this year, making them look relatively attractive to yield seekers.

Banc De Binary calculates that the falls, combined with rising dividends, have seen the average yield on the Footsie's supermarkets rise by 27 per cent in just six months.

Oren Laurent, of Banc De Binary, said: "There's been a lot of talk about how price cuts in the so-called supermarket wars will affect the financial performance of Tesco, Sainsbury's and Morrisons.

"But their resulting falling share prices have pushed up their yields, which has made them a lot more attractive to income investors who are happy to take on more volatile share prices. Five per cent yields that are well covered by earnings are hard to find among blue-chip shares."

However, anyone taking a punt on the shares needs to be aware of the high risk that prices might yet fall further.

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