HP Aichi

Main Menu

  • Excess Supply
  • Factoring UK
  • Feasibility Studies
  • Capital Structure
  • Saving Investment

HP Aichi

Header Banner

HP Aichi

  • Excess Supply
  • Factoring UK
  • Feasibility Studies
  • Capital Structure
  • Saving Investment
Factoring UK
Home›Factoring UK›Here are 5 cheap UK stocks with dividend yields over 10%

Here are 5 cheap UK stocks with dividend yields over 10%

By Allison Nichols
October 24, 2021
0
0


I think one of the best rewards for investing in the stock markets is the constant stream of passive income it can earn me. And after last year’s dividend drought, now seems the time to choose my future investments. There is a range of cheap UK stocks that also offer dividend yields of over 10%. In fact, I have already invested in many of them. But I like to keep it a bit safe. So I limited my search to only FTSE 100 and FTSE 250 actions. Indeed, these generally cover quality companies.

A cheap stock with the best dividend yield around

The FTSE 250 iron ore miner Ferrexpo offers the highest return among these, at 12.6%. I bought the stock recently, due to its high dividend yield and my assessment of its future. Like many other industrial metal miners, it has seen its stock price drop sharply in recent months, making it, in my opinion, a very cheap stock.

One Killer Stock for the surge in cybersecurity

Cyber ​​security is booming, with experts predicting that the cybersecurity market to reach $ 366 billion by 2028 – more than double what it is today!

And with that kind of growth, this North American company is shaping up to be the biggest winner.

Because their patented “self-healing” technology is changing the cybersecurity landscape as we know it …

We believe it has the potential to become the next famous tech success story. In fact, we think it could get this big … or even BIGGER than Shopify.

Click here to find out how to find out the name of this North American action that is invading Silicon Valley, one device at a time …

Iron prices have declined and forecasters are factoring in even lower prices in 2022 as Chinese demand is expected to slow. But a downward revision does not mean a price crash. In fact, the price of iron ore is still high compared to last year. And if the economic recovery remains robust, demand may also remain strong. So I remain optimistic about this.

Highest dividend yield of the FTSE 100

There is a similar story for the stock with the next biggest dividend yield. FTSE 100 metal miner and steel producer Evraz offers a yield of 12.2% and has seen a decline in the share price in recent months. Along with a correction in metal prices, the company is also facing higher taxes in its home country, Russia. I think these are among the reasons analysts expect its profits to drop next year. A drop in profits can also affect its dividends.

Even then, his term dividend yield should be 8.5%, which looks pretty good to me. These projections may be subject to change depending on changing circumstances, but are always a good place to start. Keeping this in mind, I bought the stock for my income investments.

Promising dividends but delisting due

Another FTSE 100 miner, BHP offers the second highest dividend yield of 11.3%. The Anglo-Australian commodity producer is in great shape. Both its sales and net income increased by 42% for the year ended June 30 compared to the previous year. But like all other miners, its stock price has fallen over the past two months, making it quite cheap, although in the past year it has risen by over 20% again.

From a performance perspective, there isn’t much to dislike, but I refrained from buying the stock as it expects to be delisted from the London Stock Exchange soon. And This article focuses on UK stocks, which technically won’t be soon.

A UK financial services stock with high dividends

The FTSE 250 trading platform CMC Markets also offers a dividend yield of 11.3%. With a low price-to-earnings (P / E) ratio of 4.4 times, this is one of the cheapest stocks I know of that otherwise performs well. Its share price fell sharply in early September after lowering its profit forecast for the fiscal year ended March 31, 2022.

Even then, I think the fall in its share price was out of proportion to the expected cooling in earnings. As a result, the attractiveness of the share only increased for me and I also bought some shares of CMC.

Financially healthy, but challenges at the corporate level persist

Another FTSE 100 miner, Rio Tinto, is the fifth stock to offer dividend yields of over 10%. At 10.7%, there is little doubt that this yield has been pushed up by the recent drop in the share price of the Anglo-Australian company. Like the other miners discussed above, this is at least in part due to greater caution in the demand for commodities.

But he also faced his own issues. Recently, he was scanned by authorities for allegedly withholding information about cost overruns for one of his projects. Previously, he had found himself in hot water for the destruction of historic Aboriginal caves in Australia, which resulted in changes in his leadership. Much of the rise in its stock price over the past year has been lost in recent months. It now has a P / E of only 5.5 times, making it a very cheap stock.

Although its results are expected to correct itself next year as well, it will still remain profitable. I also like its long-term potential vis-à-vis lithium, essential for batteries in electric vehicles. And I think it will continue to pay good dividends as well as it has over the past decade. I have Rio Tinto in my wallet.

In sum

Of these five stocks, four are miners. These clearly benefited from the upward trend in commodities observed since last year. And they’ve generously paid out dividends, which translates into double-digit dividend yields. But I also like these stocks because they have already paid dividends, for about five years at least. And, they have always been in good financial health. This is also true for CMC Markets, the only outlier in this group of stocks. So even though there is some moderation in the results of these companies next year, I can still be pretty sure that I will continue to earn passive income from them.

In addition, the expected decline must be seen against the background of an exceptionally good past year. And that goes for both miners and CMC, which has benefited from increased business activity by investors over the past year of fluctuating stock markets. As long as these companies stay in good financial health, I expect that they can provide me with a good stream of passive income over time if I stick to these investments.

5 actions to try to create wealth after 50 years

Markets around the world are reeling from the coronavirus pandemic …

And with so many great companies trading at prices that seem like “discount containers,” now may be the time for savvy investors to strike potential deals.

But whether you’re a new investor or a seasoned professional, deciding which stocks to add to your shopping list can be a daunting prospect during an unprecedented time.

Luckily, The Motley Fool is here to help: Our UK CIO and his team of analysts have shortlisted five companies they believe STILL offer significant long-term growth prospects despite the global foreclosure …

You see, here at The Motley Fool, we don’t think over-trading is the right path to financial freedom in retirement; instead, we advocate buying and owning (AT LEAST three to five years) at least 15 quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of these five companies in a special investment report that you can download for FREE today. If you’re 50 or older, we think these stocks could be suitable for any well-diversified portfolio, and you may want to consider taking a position in the five immediately.

Click here to claim your free copy of this special investment report now!


Manika Premsingh owns shares of CMC Markets, Evraz, Ferrexpo and Rio Tinto. The Motley Fool UK has no position in any of the stocks mentioned. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of ideas makes us better investors.


Related posts:

  1. FTSE set to rise forward of Bailey’s feedback – Dwell Updates
  2. 10-year JGB yields decrease earlier than BOJ coverage assessment
  3. Trade Evaluation & Forecast (2019-2026), By Materials, Packaging Kind, Manufacturing Course of, Utility & Area – SoccerNurds
  4. Greatest cryptocurrency mining swimming pools of 2021
Tagslong term

Categories

  • Capital Structure
  • Excess Supply
  • Factoring UK
  • Feasibility Studies
  • Saving Investment

Recent Posts

  • Rotary Kilns Market 2022 – Industry Dynamics, Demand Analysis, Statistics, Trends and Opportunities to 2028 – Designer Women
  • Valero Energy Stock: Expensive with potential for losses (NYSE: VLO)
  • Ukraine asks the West for a huge increase in the supply of heavy artillery | Ukraine
  • Top Stories of the Week – NBC 6 South Florida
  • What is the Smart Sleep Tracker market size? – Indian Defense News
  • Terms and Conditions
  • Privacy Policy