Long-term financial investors make hay

LONG-TERM investors in Irish financial stocks have made twice as much profit on their investment as property owners, analysis by Davy Stockbrokers indicates.

Davy chief economist Robbie Kelleher calculates that an investor in Irish banking stocks who re-invested all their dividend earnings would have generated a return equivalent to 20% a year or a 24-fold return on the original investment over the last 17½ years.

In a research note to clients entitled 'The remarkable performance of Irish financials' Mr Kelleher points out that the ISEQ Financials index was trading at 12,035 near the close of business last Friday. The reading on the ISEQ General index was 4,207 at the same time. The General Index includes all other stocks on the market apart from the financial stocks.