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WPP’s advertised dividend yield could be a winning message

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A slowdown in growth has left advertising giant WPP with a 6.9% dividend yield. We explain why this payout still looks safe and could prove to be a winning long-term opportunity for income buyers.

The Income Booster portfolio isn't meant to be a contrarian selection of stocks, our focus is on sustainable dividends and attractive yields. But sometimes value and income overlap. We believe the final stock in this portfolio, FTSE 100 advertising giant WPP (LON: WPP), is just such a firm.

The departure of founder Sir Martin Sorrell in April 2018 proved to be the catalyst for some much-needed change at the firm. WPP's sprawling and fragmented corporate structure was looking increasingly ill-equipped to compete in a sector dominated by big data, online advertising, Google and Facebook (US: FB.).

Revenue growth had slowed and profits were expected to fall. Clients were leaving. The business wasn't broken, but it was clear that a change was needed.

Evolution, not revolution at WPP

Sorrell's replacement, Mark Read, was always going to have big shoes to fill. But Mr Read appears to have approached the task of rejuvenating WPP with confidence and decision. By September, he had already managed to…

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