Sunday tips round-up: HSBC, Smith News, Ashtead

For those seeking quarterly payments, one company worth buying is HSBC, says the Telegraph's Questor. The dividend yield is not spectacular at the moment - the yield is a touch under 4pc. However, the market expects a strong hike in payments over the next few years as global markets recover.

The shares are trading on a December 2010 multiple of 13.4, falling to just 9.7 next year. The company is globally diversified and it did not have to take any bail-out money during the banking crisis - it continued to pay its dividend and remained profitable.
The shares are a buy for quarterly income seekers.

Smiths News shares are 108p, so the stock is yielding more than 6%. As chief executive Mark Cashmore continues to develop the business, the price should tick up. In the meantime, the dividend offers investors a handsome income. Buy, says the Daily Mail.

Ashtead, which hires plant and equipment to the construction sector, plans to invest £175m of its cash flows in its fleet over the next year to replace the older part of its fleet, to keep the average age of its equipment flat. This is a prudent move.

The shares are trading on an April 2011 earnings multiple of a heady 92.5 times, but this falls to 17.9 in 2012 and 10.1 in 2013. The yield is 2.6pc. The shares remain a buy for recovery and the Telegraph's Questor regards them as one of the best plays on a US recovery - although any double-dip recession could hit the shares hard.

Avanti shares have more than doubled to 4391€2p in the past 13 months. Brokers believe the stock is worth at least 650p, but the price is constrained because there is always a risk that the launch of Hylas 1 will be unsuccessful.

Investors who bought last year could hedge their bets by selling 25 to 30%. New investors may want to dip a toe in the water - if both satellites do what they are supposed to, there is still real potential in the shares, says the Daily Mail.

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