The FTSE 100 has recovered strongly since the shock of the Iran war drove share prices lower. The UK’s premier share index is up 1.6% over the past month, as dip buyers have emerged to snap up cheap shares.
There are still plenty of bargains to be had, however. Some quality Footsie shares continue to look cheap despite the broader index’s recovery. Take Tritax Big Box REIT (LSE:BBOX) and ICG (LSE:ICG).
Not only do these blue-chip stocks carry rock-bottom price-to-earnings (P/E) ratios. They also boast dividend yields well above the index average of 3.2%. In my view, they’re two of the best bargains on the stock market today. Here’s why.
Tritax Big Box REIT
Rising interest rates carry a raft of problems for property stocks. It’s why real estate investment trust (REIT) Tritax has dropped 5.6% over the last month — with inflationary pressures growing, the Bank of England may be forced to hike lending costs in the coming months.
The issue for REITs is that higher interest rates hit property valuations, depressing net asset values and causing balance sheet pressure. They also push up borrowing costs, so while Tritax doesn’t have enormous debts (loan-to-value was 33% as of December), its debt servicing expenses could still jump.
In my view, these pressures are more than baked into Tritax’s low valuation, though. And that represents an attractive dip buying opportunity to consider. The firm’s forward P/E’s dropped to 10.6, while its dividend yield’s risen to 5.3%.
I especially like Tritax because of its passive income potential. That FTSE 100-beating yield partly reflects REIT rules, which state 90% of rental profits be distributed to shareholders. I’m also confident its diversified, blue-chip tenant base and long rental contracts should keep cash flows stable, which is critical for dividends. Its weighted average unexpired lease term (WAULT) sits above 10 years.
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ICG
Now ICG could find itself under more pressure if inflation soars and economic conditions worsen. The company formerly known as Intermediate Capital Group lends money and manages investments for wealthy individuals and institutions.
During tough times, demand for new financing can drop, while existing borrowers may struggle to repay their loans. Finally, investment returns can fall if financial markets deteriorate, putting more pressure on earnings.
So why should investors consider ICG shares today? One reason is its stunning value — its P/E for 2026 has slipped to 9.9, while the dividend yield has increased to 5.5%. Another is the FTSE company’s resilience during previous downturns, as demonstrated by its ability to lift dividends every year since the 2008/2009 financial crisis.
Finally, I’m still confident ICG will deliver robust long-term returns. And as someone who invests for extended periods, this is most important to me personally. Alternative investments and private credit providers are experiencing strong structural growth as traditional banks tighten their lending rules.
