...and the rest

Investors’ Chronicle

Falling demand for cardboard boxes hasn’t stopped packaging giant Smurfit Kappa from reporting a near-40% rise in profits. The growth was driven by price increases. Weakening demand could eventually force price cuts, but with input costs also on the way down, this huge and diversified operator should ride out any downturn. Buy

(3,449p).

Shares

Shares in pharma firm GSK are trading at a 31% discount to the wider pharmaceutical sector due to worries about ongoing litigation over heartburn drug Zantac. However, that presents a reasonable entry point into a firm that is offering a 3.8% dividend yield and whose core life-sciences business is ticking along nicely. Buy (1,485p).

The Telegraph

Analysts forecast that profits will drop at oil firm Shell in 2023 and 2024. But even if oil prices slide, it can “still comfortably fund its forecast dividend”. It’s a hold, but one with clear share-price upside and higher cash returns if energy prices rise again. (2,455p).

The Times

Investors cannot bank on share prices continuing to rally, so “dividends might have to do even more of the heavy lifting”.

Murray Income Trust has increased its dividend for 49 straight years and has reserves equal to half of last year’s payment, so should be able to top it up even if its holdings cut dividends in a downturn. The shares yield 4.2%. Buy (687p). Housebuilder Redrow has become the latest construction firm to report slower sales as the property slump bites. The shares yield just over 5%, but there are “better dividends on offer from housebuilders with richer balance sheets”. Avoid (536p).