Just released: our 3 top income-focused stocks to buy right now [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due to a combination of business performance and potentially attractive share valuation.

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The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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Premium content from Motley Fool Share Advisor UK

Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.

“Best Buys Now” Pick #1:

A G Barr (LSE: BAG)

  • Part family-owned soft drinks business that owns attractive brands. 
  • Grew like-for-like sales by 15.9% in latest fiscal year. 
  • Impressive momentum from its Funkin brand, the UK’s leading ready-to-drink cocktail brand, which grew revenues by 16%. 
  • The company says that 9.6m UK consumers drink cocktails out of home, a 1.6m increase since pre-pandemic, which has helped the category increase by 13% to £686m since 2019. This looks like a growth avenue for the company. 
  • Recent acquisition of Boost “has performed exceptionally well”. 
  • While operating margins declined from 14.9% to 13.6% due to inflationary cost pressure and higher investment, the company believes it can rebuild margins over the medium-term. 
  • Currently trading at around 17x forecast earnings, a discount to the three-year average of closer to 20x. 

“Best Buys Now” Pick #2:

Redacted

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

The Motley Fool UK has recommended A.g. Barr P.l.c. 

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