5 dirt cheap FTSE stocks I'm buying today for passive income
When I have enough work to live on, I want to enjoy a carefree retirement with a nice big passive income. I think the best way to do this is to invest in a mix of FTSE 100 dividend stocks, many of which are now available at bargain prices
I've bought all five stocks I've listed here in recent weeks. I like it so much that I plan to average and buy more I made two recent forays into Lloyds Banking Group, both times when the share price fell below 45p. It's trading at 42.4p today so I'm sitting at a paper loss but it's early days.
I buy dividend stocks
Like all FTSE 100 banks, Lloyds has benefited from rising interest rates which have allowed it to expand net margins. It was also hit by concerns that higher borrowing costs would lead to a sharp rise in debt impairments. As a result, it is very cheap, trading at just 5.8 times earnings. Lloyds shares are now forecast to yield a whopping 6.6%, covering 2.7 times earnings. If I don't buy at the current lows, I might kick myself one day.
I also bought shares in paper and packaging giant Smurfit Kappa Group and wished I had bought more when its share price fell 10% and then quickly recovered. Now I have another chance when the index is sliding. I think this well-run, profitable company will one day look like a steal at today's valuation of 8.2x earnings. Smurfit currently yields a relatively low 4%. However, this is covered at 3.2 times earnings and I expect progression as the economy recovers. I also expect solid share price growth.
I knew I was taking a risk when I bought miner Glencore last month. And it showed, as the share price immediately fell 10% on bad news from China. It is now even cheaper at 3.9x earnings with a projected yield of 8.8%. Its stock and dividend may suffer if the China issues persist, and I'll be waiting for the right time to dig in and buy more.
Low and high yields
I also bought a defensive Unilever dividend growth stock when I flipped the risk indicator. It's been trading at around 23 or 24 times earnings for years, so today it looks cheap at 18.3 times earnings. Its well hedged yield of 3.7% is also higher than normal.
My latest purchase is ultra-high yield. Wealth manager M&G currently pays a frankly stunning income of 10.48% p.a. I've been looking at the company's recent statements and it seems that its board is really committed to maintaining shareholder payouts. His resolve may be tested if markets continue to decline, as this could hit net inflows and assets under management. But I'm taking a risk that it will work out. In fact, I plan to buy another one. At 9.8 times earnings, it's not dirt cheap, but it's still cheap.
It seems ridiculous, but we almost never see stocks that look this cheap. Still, this recent "Best Buy Now" has a price-to-book ratio of 0.51. In plain English, this means that investors are effectively entering a business that holds £1 in assets for every 51p they invest!
Of course, this is the stock market, where money is always at risk — these valuations can change and there are no guarantees. However, some risks are much more interesting than others, and at The Motley Fool, we believe this company is one of them.What's more, it currently boasts a stellar dividend yield of around 8.5%, and it's possible for investors to jump in at near-historic lows right now. Want to make a name for yourself?
In the world of investing, finding affordable passive income opportunities can be a rewarding strategy. The FTSE (Financial Times Stock Exchange) is a major source of potential, boasting a number of undervalued stocks that could provide lucrative returns. In this article we dive into five dirt cheap FTSE stocks worth considering for your passive income portfolio. Let's explore these hidden gems and shed light on why they deserve your attention.
FTSE shares for passive income
is a well-established player in the industry, offering a diverse range of products and services. Despite its solid fundamentals and consistent growth, the stock price has been undervalued recently. This represents an attractive entry point for investors looking to secure stable dividends and potential capital appreciation.
ABC Industries is poised for significant growth with its innovative approach and expanding market presence. With a low price-to-earnings ratio and a track record of consistent revenue growth, ABC Industries offers an attractive combination of capital appreciation and passive income through dividends.
FTSE share growth
DEF is a reliable dividend payer that consistently distributes dividends even during economic downturns. This stability is reflected in a high dividend yield and a strong history of shareholder returns. Investing in DEF can provide a steady stream of passive income, making it an attractive option for income-focused investors.
Resilience in Challenging Times:
The GHI Group has demonstrated remarkable resilience in meeting market challenges. Its ability to adapt to changing circumstances and maintain profitability makes it an interesting choice for long-term investors looking for passive income. The current undervaluation of GHI shares presents an opportunity to enter the market at an attractive price.
resilient FTSE stocks
emerging FTSE shares
Investing in dirt cheap FTSE shares for passive income can be a smart move, especially given the potential for capital appreciation and stable dividends. The companies mentioned above, including offer investors a number of opportunities to diversify their portfolios while enjoying potential gains. Before making any investment decision, be sure to do your due diligence and consider seeking advice from financial professionals.
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Investors looking for passive income often look to the FTSE market for opportunities. By carefully considering undervalued stocks, you can potentially secure a steady stream of income. In this article we dive into five dirt cheap FTSE stocks that I consider for their passive income potential. These stocks not only offer the promise of dividends, but also boast strong fundamentals that can make them attractive additions to your investment portfolio.
FTSE shares, passive income, undervalued shares, dividends, investment portfolio
Company A, a in its industry, has recently seen its share price decline. However, this presents an opportunity to acquire shares at a bargain price. The company has a track record of consistently paying dividends and has a solid dividend yield. Its commitment to maintaining shareholder value makes it an attractive prospect for those looking for passive income.: dividend potential, share price, contract, dividend yield, shareholder value
Resilience in volatile markets
Company B has demonstrated remarkable resilience during market volatility. Despite economic uncertainties, it has managed to maintain its dividend payout. The company's low valuation relative to its earnings and strong cash flow generation make it an attractive choice for investors seeking passive income while minimizing risk. market volatility, dividend payments, valuation, profits, cash flow, risk minimization
Dominance in niche market
Company C operates in a niche market with limited competition. This dominance has translated into steady revenue growth over the years. The current undervaluation of stocks is an opportunity to enter a potentially lucrative market. With a history of increasing dividends, a C corporation can be an excellent addition to your passive income strategy. market gap, earnings growth, undervaluation, lucrative market, dividend increase
Infrastructure for long-term income
Company D plays a key role in providing essential infrastructure services. This stable demand contributes to its reliable cash flow. Despite recent market swings, the company's dividend history remains intact. By investing in Company D, you position yourself to benefit from a reliable stream of passive income over the long term. infrastructure services, stable demand, cash flow, dividend history, long-term
Sustainable Dividends and ESG Focus
Company E excels in its commitment to environmental, social and governance (ESG) principles. This focus not only contributes to sustainability, but also improves its prospects for long-term growth. Current stock availability provides an entry point for investors interested in aligning their portfolios with ESG values while earning passive income. ESG principles, sustainability, long-term growth prospects, affordability, entry point, passive income
Incorporating dirt cheap FTSE shares into your investment portfolio can provide a reliable source of passive income. These five companies offer unique qualities that set them apart, from dividend potential and market dominance to resilience and ESG focus. By diversifying your holdings across these carefully selected stocks, you can work to build a passive income stream while taking advantage of current market opportunities. investment portfolio, passive income, diversification, market opportunities
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