Value in mega caps as yields climb, says NU's Douglas

Morley's UK equities manager Mervyn Douglas is moving into mega-cap stocks as valuations continue to ...

Morley’s UK equities manager Mervyn Douglas is moving into mega-cap stocks as valuations continue to fall. Douglas has been buying blue chips such as BP, Glaxo and Vodafone for inclusion in his £100m fund, Norwich Union UK Focus. He said: “The turmoil in the stock market is throwing up real opportunities for long-term investors. Many companies look good value with the dividend yield of the UK market now equal to the yield on gilts. “In particular, many mega caps offer dividend yields well in excess of 5%, backed by strong balance sheets. Even within financials there will be long-term b...