In the same vein Vodafone still has enough growth ahead of it to suggest it has not fallen into utility offering just yet. Both BT and Vodafone offer about 6 per cent yields. Slightly more left-field on this theme is Dixons Carphone, which remains one of the few places to actually handle some tech before buying it. The recent update and adjustment to forecasts was disappointing, but I sense the bar has been set deliberately low.
Finally, a few random ideas on stocks with good yields. The ability to deliver strong media content will help drive advertising revenue plus the impending arrival of a highly regarded chief executive bodes well for ITV.
The shares have also previously been buoyed by takeover speculation. Retail is a very tough place, but through its Directory, Next has demonstrated it can grow a multi-channel business. It appears to be getting its clothing staples right and trades on an attractive earnings valuation.
City congestion, pollution concerns and road charging should suggest that public transport operators have a place in the market. Go Ahead is another stock that has had issues, but still increased its full-year dividend by 6 per cent and the forecast payment is covered 1.8 times by earnings.
To conclude, while there is less obvious value in globally diversified companies, there are still opportunities available to investors. Granted these are more domestically focused, but companies that can offer an above average yield, even in potentially uncertain post-Brexit times, will attract investor interest. Look in the right place and you will find enough good opportunities.
Andy Brown is head of equity research at Tilney
