8.5% dividend yield! 3 cheap stocks I would buy in October
There were already plenty of cheap stocks for investors to pick up in September. But the recent stock market crash means even more impressive UK stocks can be clawed back for next to nothing.
Here are three low-cost airlines on my radar right now. I think they could be some of the best cheap UK stocks to buy as October approaches.
# 1: 8.5% dividend yield
Most housing construction actions like Vistry Group offer staggering overall value. Not only is this particular builder trading on a forward price-to-earnings ratio (PEG) of 0.8, but the FTSE 250 the company also has a powerful 8.5% dividend yield!
A PEG reading of less than 1 suggests that a stock might be undervalued. It’s a reading I think more than reflects the risks that soaring commodity prices pose to the home builder. I think cheap Vistry stocks should continue to provide decent returns to shareholders in the context of robust house prices.
Real estate agent Hamptons believes average property value growth will cool off from the 4.5% expected in 2021. But they still expect values to rise 3.5% and 3% respectively in 2022 and 2023, offering builders (and their shareholders) tremendous peace of mind. disturbs.
# 2: cheap UK stock for the inflation boom
I think Petropavlovsk might be one of the best stocks to buy when inflation rises. Indeed, the gold it produces is a traditional flight-to-safety asset whose price increases as the value of paper currencies is scrutinized. Statista data shows that the demand for safe haven for the metal is already increasing sharply. Investment demand reached 284.5 million tonnes in the second quarter against 180.7 million in the first quarter.
Petropavlovsk might find it difficult to take advantage of this inflationary environment if it encounters problems in its mining operations and production disappoints. Still at current prices, I think the Russian excavator could still be a great buy. Today, it is trading on a 9x futures price-to-earnings (P / E) ratio, well below bargain territory of 10x and less.
# 3: a return of more than 8% of the FTSE 100
UK equity investors need to be aware of how a rapid downturn in the domestic economy could hurt their returns. A cheap stock that I would buy to protect myself from slipping is Admiral Group. General insurance spending levels remain stable at all stages of the business cycle. This is especially true in the base engine division of Admiral, as coverage is a legal requirement.
it’s true that FTSE 100 stock faces a significant danger from an intensely competitive market. Additionally, auto insurers like this face a potential increase in costs in the years to come. This includes the surge in auto claims as drivers get back on the road after Covid-19 lockdowns and the rise in building insurance claims due to climate change. But I think the Admiral still deserves serious consideration at current prices. The insurer trades on a forward PEG ratio of only 0.5. It also boasts a glorious 8.5% dividend yield.
Is this little-known company the next “Monster” IPO?
At the moment, this ‘shout BUY’ the stock is trading at a steep discount to its IPO price, but it looks like the sky is the limit in the years to come.
Because this North American company is the undisputed leader in its field which is estimated to worth $ 261 billion by 2025.
Motley Fool UK’s analyst team just released a full report that shows you exactly why we think it has so much upside potential.
But I warn you you will have to act quickly, given the speed at which this “monster IPO” is already advancing.
Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK recommended Admiral Group. 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.