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Sean Farrell Sharecast News
07 Sep, 2020 15:09

Dunelm could pay special dividend, RBC says

Dunelm Group

1,120.00p

14:29 18/11/24
0.81%
9.00p

Dunelm could announce a further special dividend in 2021, Royal Bank of Canada said as it raised its price target on the homewares retailer.

FTSE 250

20,362.87

14:40 18/11/24
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n/a

FTSE 350

4,461.20

14:40 18/11/24
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FTSE All-Share

4,418.97

14:40 18/11/24
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General Retailers

4,592.66

14:34 18/11/24
0.27%
12.28

In an unscheduled trading update on 1 September Dunelm said it traded well ahead of expectations in the past two months helped by pent-up demand and its successful online operation. The retailer is due to report annual results on 10 September.

RBC analyst Richard Chamberlain and colleagues increased their price target for Dunelm shares to £15 from £13 and raised their 2021-22 pretax profit forecasts by 15%.

"Given the strong trading momentum, we … see potential for Dunelm to announce a further special dividend in 2021, in addition to the 32p special paid last October," the analysts wrote in a note to investors.

Dunelm shares rose 3.9% to £14.82 at 15:04 BST.

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