Persimmon to pay extra dividend

In a trading update today, the housebuilding company Persimmon said that it will pay shareholders an additional dividend on back on strong 3Q performance.

Charts (6)

In a trading update today, the housebuilding company Persimmon said that it will pay shareholders an additional dividend on back on strong 3Q performance.

"The Group's average private weekly sales rate for the period was c. 38% higher than last year driven by the strength of the Group's gross sales levels net of slightly higher cancellation rates. (...) We remain confident that legal completions in the second half of this year will be at least in line with the second half of 2019, (...) the Board is pleased to announce a second interim dividend of 70p per share which will be paid on 14 December 2020 to shareholders on the register on 27 November 2020 in satisfaction of the Board's previously indicated final dividend for 2019."

From a chartist’s point of view, the stock price escaped from a triangle continuation pattern and faces a challenging horizontal resistance near 2850p. The daily RSI (14) has broken above a declining trend line and is not overbought. Readers may want to consider the potential for opening Long positions above 2514p (20/50DMAs). A break above 2850p would call for a new up leg towards 3110p and 3328p. Alternatively, a push below 2514p would invalidate the bullish bias and would call for a test of the horizontal support threshold at 2181p. 

Source: GAIN Capital, TradingView

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