Dunelm (LON: DNLM) & Tullow Oil (LON: TLW): 2 FTSE mid-cap shares to buy

September 08, 2021 01:08 PM BST | By Suhita Poddar
Follow us on Google News:


  • Homewares giant Dunelm reported strong FY 2021 results and announced an ordinary dividend of 35 pence and a special dividend of 65 pence per share.
  • Dunelm’s total sales swelled by 26.3 per cent to £1,336.2 million in FY 2021 from the previous year.
  • Tullow Oil is set to report its FY 2021 results next week on 15 September.

Midcap stocks have always attracted investors with the features like good growth prospects, market share and opportunities to increase profit. These stocks are equally beneficial for portfolio diversification.

Here we are discussing two FTSE 250 listed stocks, which is the mid-cap index on the London Stock Exchange (LSE), Dunelm Group PLC (LON: DNLM) and Tullow Oil PLC (UK) (LON: TLW). Let us take an in-depth look at these stocks and see if it’s the right time to buy them:

  1. Dunelm Group PLC (LON: DNLM)

Dunelm Group is a UK based homewares company. It reported its FY 2021 final results today, with total sales jumping by 26.3 per cent to £1,336.2 million in FY 2021, from £1,057.9 million in FY 2020 despite store closures due to strong sales growth is driven by digital sales.

The group declared an ordinary dividend of 35 pence per share due to confidence in its growth. It also declared a special dividend of 65 pence per share as the company had not paid out dividends in FY 2020 due to the pandemic, bringing the total FY 2021 dividend to 100 pence per share.

The group’s shares surged following the news, making it the highest riser on the FTSE 250 index in today’s trading session.

(Image Source: Refinitiv)

Dunelm’s shares were trading at GBX 1,423.00, up sharply by 10.65 per cent on 8 September 2021 at 11:02 AM GMT+1, while the FTSE 250 index was trading at 23,980.67, down by 0.49 per cent.

The company’s market cap is £2.606 billion, and it has given a year-to-date return of 17.07 per cent as of 8 September.

  1. Tullow Oil PLC (UK) (LON: TLW)

Tullow Oil is an Africa, and South America focused independent oil and gas company. Tullow is scheduled to report its interim FY 2021 results on 15 September.

The company forecasted its FY 2021 capex guidance to be around US$ 250 million and full year oil production guidance of 59 kbopd in its most recent trading statement and operational update.

(Image Source: Refinitiv)

Tullow’s shares were trading at GBX 42.10, down by 0.43 per cent on 8 September 2021 at 09:56 AM GMT+1, while the fossil fuel sectoral index was trading at 5,082.56, down by 1.14 per cent.

The company’s market cap is £604.59 million and has a one-year return of 110.69 per cent as of 8 September.

Bottom Line

The UK retail sector is heading towards recovery as the economy has rebounded following a tough 2020 amidst store closures. Dunelm’s pivot towards click and collect offers using its digital channel helped push its FY 2021 results significantly. Income investors can consider investing in DNLM due to its dividend policy.

Tullow’s FY 2021 production guidance and over 100 per cent in 1-year returns indicates an optimistic outlook ahead of its results next week.

Investors can consider TLW if they are looking to bolster their mid cap exposure. Investors should also keep an eye on OPEC production output decisions due to ongoing global supply shortage impacting oil prices.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top LSE Listed Companies