Broker snap: Halma's divi growth record looks safe

22nd Jun 2010 13:10

Stronger than expected cash generation should ensure that Halma's 31 consecutive years of dividend growth in excess of 5% per year should be extended, broker KBC Peel Hunt predicts.The broker notes that the cash generation will add about £100m about to the war chest of a company that has not been shy of heading out on the acquisition trail in the past.KBC Peel Hunt is sticking with its "hold" recommendation and will be leaving its fiscal 2011 earnings forecasts unchanged, pending the analysts briefing, though its full year dividend forecast for the current year has been raised to 9.0p, "to ensure that the 5%+ record remains unbroken."Panmure Gordon is also sticking with its "hold" recommendation, as it think the shares are fairly valued at present, though it believes the company is "set to move into an environment of steady growth but higher margins.""Some marginal surprises could be provided by Asia and by acquisitions," Panmure analyst Oliver Wynne-James suggested.