We had some juicy updates from FTSE 250 stocks on 17 October, and a few of them are among my favourites.
FTSE 250 stocks often grow faster than those in the FTSE 100 when markets turn bullish. And I have some on my list of potential buys for 2024.
Big fall
Jupiter Fund Management (LSE: JUP) fell 10% on the back of a trading update. I’d say that could make the stock a better buy now.
The firm has seen net outflows of £1bn since the start of the year. And, perhaps worryingly, it all happened in the third quarter.
Assets under management still stood at £50.8m at the end of the quarter, though. And the firm says we should see “modest outflows” for the full year, in line with expectations.
It looks like high interest rates and rising bond yields are swaying investors’ minds right now, and I expect that to mess with firms like Jupiter. But I can only see it as a short-term thing.
I still have Jupiter down as a potential long-term buy. I do see volatile times ahead, and perhaps a rocky end to the year. So I’ll wait for full-year results, due in February.
Big dividend
House builder Bellway (LSE: BWY) had a steadier day, and it’s among my top FTSE 250 dividend stocks for 2024 and beyond. The share price is recovering from its 2022 slump, but it’s still down 21% in five years.
That means a fatter dividend yield, with the full-year payout up to 6.4% on the current share price.
The company itself seems to agree that its shares are cheap, snapping them up under its share buyback programme.
A 2.3% fall in full-year completions looks fair to me in the current property market. Underlying earnings per share, however, fell 22%. House prices are squeezed, and inflation has pushed up materials costs.
I fear we might see a tougher year in 2024. But this is another I’d buy for long-term dividends, even if I might suffer some short-term pain. I just see the home construction business as a long-term cash cow.
Big jump
I’ll end on a high, with a Q3 update giving Moneysupermarket.com (LSE: MONY) a 7.5% boost. After a strong 2023, the shares are now down 7% in five years.
The financial comparison company saw a 14% rise in revenue in the quarter, up 12% in the nine months to September.
That’s good, but I’m cautious. We’re in tough financial times, and that’s when people most try to save money by switching suppliers.
Interestingly, the rise is almost entirely from insurance switching. It includes motor and home insurance, but I’m just not sure how sustainable that jump might be.
We’re looking at forecast dividend yield of 4.8% and rising, and it’s a cash-strong business. But might profits fall off in better times when people aren’t so squeezed?
Still, I wonder if this might be the kind of “wonderful company at a fair price” that billionaire investor Warren Buffett loves so much?
