Soft trading conditions in the car insurance market have pushed Sabre Insurance Group’s (LSE: SBRE) share price sharply lower.
A hangover from Covid-19 lockdowns, a soft pricing environment, and weak car sales owing to supply chain issues have all caused trading to disappoint. It’s possible that some or all of these problems will continue to hamper the dividend stock into 2022 too.
However, as a long-term investor, I’m extremely tempted to buy Sabre shares at current prices. This is primarily because the insurer carries a mighty 6.7% dividend yield for 2022. It’s also because there’s a chance Sabre may have touched rock bottom. And that means premiums may start rising again from next year. It recently commented that “further tentative signs that market prices may be starting to correct.”
I’m also encouraged by Sabre’s potentially-lucrative entry into the motorcycle segment this month. It’s signed a deal to become exclusive underwriter for MCE Insurance, one of the biggest bike insurance distributors in the business.
The not-so-snappily-titled Triple Point Energy Efficiency Infrastructure Company (LSE: TEEC) is another dividend stock I’m considering buying. And it’s not just because its yield sits at a decent 5.3% for the fiscal year to March 2022. Renewable energy stocks like this could prove to be shrewd assets to own as demand for low-carbon electricity shoots through the roof.
TEEC invests in a broad range of ‘green’ energy projects to help the government hit its net zero target by 2050. Its most recent bit of business in September saw it snap up a portfolio of hydroelectric power projects in Scotland.
Its best-known investment to date is in combined heat and power (or CHP+) assets on the Isle of Wight which supply heat, electricity and carbon dioxide to APS Salads, the UK’s largest producer of tomatoes.
Now TEEC isn’t one of the biggest renewable energy stocks out there. But it has a packed acquisition pipeline that could help it generate big shareholder returns in the future. I’m thinking about buying it even though, like any acquisition-focussed entity, it faces the constant danger of overpaying for an asset.
A brilliant dip buy
The PayPoint (LSE: PAYP) share price has fallen significantly in recent weeks. And as a bargain lover this has set my antenna quivering. The retail technology giant now trades on a P/E ratio of 12 times for the fiscal year to March 2022. Furthermore, its dividend yield has jumped to a mighty 5.8%.
PayPoint makes terminals which allow retailers to execute transactions, receive parcels and take bill payments from customers, and benefit from EPOS functionality. Its technology is cutting edge and demand for its PayPoint One terminals continues to steadily climb. It installed an extra 324 machines during the three months to June.
A high-profile failure of its systems could prove devastating for PayPoint’s profits. But although a past lack of such problems isn’t necessarily a reliable indicator for the future, I’m reassured by the company’s record on this front.