‘Oven ready’ seems to be one of the biggest buzzterms right now, its bizarre popularity catching fire after Boris Johnson used it to describe his Brexit deal during the election campaign. Who am I to fly in the face of popular convention? So here, I’m looking at two great income stocks that should start cooking on gas in 2020, starting off with leisure giant Marston’s (LSE: MARS).
The colossal levels of uncertainty associated with Brexit are playing havoc with the whole of the UK economy with, arguably, the brunt of the political and economic confusion being shouldered by the country’s retailers. Latest data from the British Retail Consortium showed total retail sales plummet 4.4% year-on-year in the period spanning October 27-November 23.
It’s quite remarkable then, how the country’s leisure industry is continuing to keep its head above water while the retail sector slumps and, more specifically, Britain’s wide network of public houses, as research from Office of National Statistics shows. According to the body, the number of drinking establishments as of last March stood at 39,135, up 320 from the same month in 2018. That’s the first annual rise since 2010.
The rising cacophony of ringing tills in Britain’s pubs was illustrated by those fresh financials from Marston’s, one in which it advised like-for-like sales were up 1.9% in the final 10 weeks of the fiscal year ending September 2019, much better than the 0.8% rise for the entire 12-month period.
No wonder City analysts believe Marston’s will be confident enough to pay another 7.5p per share annual dividend for financial 2020 then, a reading which yields a terrific 5.9%. I think it’s a brilliant buy for the upcoming year.
Another great share to buy for the new year, in my opinion, is Highland Gold Mining (LSE: HGM). The commodity play could be a great purchase before voting for the general election closes tomorrow night, with recent surveys suggesting the chances of another hung parliament are growing.
Gold stocks are among the biggest leaders in Wednesday trade as a result, and fresh data on bullion sales to retail investors underlines the strength of safe-haven buying right now. According to The Pure Gold Company, sales of physical gold bars and coins have surged 314% over the past seven days (compared to the weekly average in 2019). Is the market gearing up for the Conservatives failing to seal a parliamentary majority?
As I’ve explained recently, I believe the stage is set for gold and gold stocks to surge in value on a perfect storm of macroeconomic and geopolitical uncertainty in 2020. And, in my opinion, Highland Gold Mining is a great way to play this theme, its 3.9% dividend yield for next year providing an added sweetener. It’s a reading which smashes the corresponding average of 3.3% for Britain’s mid-caps to kindling.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.