Morrisons should ditch the buybacks and raise its dividend

Morrisons may have kept its profits up, but it would serve its shareholders and customers a lot better if it stopped buying back shares, cut back on new stores, and raised its dividend, says Phil Oakley.

Morrisons (LSE: MRW) seems to have confounded the doom-mongers who were out in force in the weekend press.

Many had expected the supermarket chain's profits to drop during the first half. Instead they rose slightly, which is probably why the City seems to be pretty pleased with the figures.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.