2 top-quality FTSE value stocks I’d pick up in June

With the UK market thriving, this Fool’s on the lookout for value stocks. Here, he explores two he’d be keen to pick up in June.

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With FTSE stocks heating up, I’m on the hunt for value as I look to bolster my portfolio this month.

Share prices are on the rise. Yet given the UK’s subpar performance over the last few years, many businesses still look great value for money.

I reckon these two top-quality value stocks could be savvy buys today. I think long-term investors should consider buying them. If I had the cash, I’d pick them up this month.

Industry stalwart

Legal & General (LSE: LGEN) already makes up a substantial proportion of my portfolio. But with its share price having pretty much flat-lined year to date while the FTSE 100 is up 5.9%, I think now could be a shrewd time to add to my holdings.

The stock looks cheap, trading below the FTSE 100 average (11) on just 9.8 times forward earnings. Its share price has suffered recently and there are a few reasons why. The main issue has been the uncertainty generated from the current economic conditions.

Assets under management have wavered as investors pulled their money from funds. We’re expecting more volatility in the months to come, so this will likely continue to be an issue.

But I like the prospects of where the business could head under CEO Antonio Simoes, who took over at the start of the year. He’s put more emphasis on creating a simpler business and is expected to outline new strategic goals for the firm at a capital market day this month.

The stock already has a bulky 8.1% dividend yield. Yet Simoes’ earmarked shareholder returns as a top priority. To achieve this, he’s conducting “a thorough review of all businesses” to see where extra growth will come from. I’ll hopefully increase my position in the stock this month if I have some investable cash.

Storage expert

Also on my radar is Safestore (LSE: SAFE). The company does what it says on the tin. It’s the largest storage provider in the UK. It’s down 4.7% in the last 12 months whereas the FTSE 250‘s risen 8.7%. But up 14.2% in the last month, its shares seem to be gaining momentum.

Even with that rise, the stock still looks like good value. Its shares trade on 9.6 times earnings, below the FTSE 250 average of around 12.

I think Safestore could be a slow burner. It’s faced multiple challenges in the past couple of years with the economic environment. For example, occupancy rates have wavered due to higher rents. In the near term, this could continue to be an issue and weigh down on the firm’s profits.

But I’m still bullish. It dominates the UK market. As such, it’s now turning its attention to overseas. Last year it continued with its European expansion, adding six new locations in Spain and two in the Netherlands.

Despite underperforming in the UK, revenues increased 5.5% in 2023 overall even with tough trading conditions.

There’s also its 3.4% yield to consider. It has upped its dividend for the last 14 consecutive years. During that spell, its payout has increased at an annualised rate of nearly 20%.

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.

Charlie Keough has positions in Legal & General Group Plc and Safestore Plc. The Motley Fool UK has recommended Safestore Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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