And its recent performance hints at something more interesting beneath the surface. The business is strengthening, yet the share price still feels restrained.

That gap could be where the opportunity lies for investors who value both income and mispricing.

Increasing dividend returns?

UK insurance giant Admiral’s (LSE: ADM) current dividend yield is 5.4% — way higher than the FTSE 100’s 3.1% average.

However, analysts forecast this will rise to 5.5% this year, 6.2% next year, and 6.8% in 2028.  So, my £20,000 holding in the stock would make £19,402 in dividends after 10 years and £132,929 after 30 years. This period is commonly seen as a standard investment cycle for long-term investors, such as me.

These numbers are based on the average 6.8% forecast yield, although these can alter over time — up or down.

They also assume that the dividends are reinvested into the stock to harness the supercharging effect of ‘dividend compounding’. It is like leaving interest to grow over the years in a savings account.

After 30 years on this basis, the holding’s value would be £152,929.

And this would generate an annual income from dividends of £10,399!

Rising share price?

Share prices tend to converge to their ‘fair value’ over time. This value represents the true worth of the underlying business, while price is simply whatever the market will pay at any point.

Discounted cash flow (DCF) analysis identifies any stock’s fair value by projecting future cash flows from the business. It then discounts these back to today.

DCF modelling varies according to the assumptions used by analysts — some more bullish than mine and others more bearish. But based on my DCF assumptions — including a 7.2% discount rate — Admiral shares are 48% undervalued at their current £33.50 price.

On that basis, I calculate a ‘fair value’ of around £64.42 — nearly twice the level they are now.

So this price-to-valuation gap suggests a potentially terrific buying opportunity today, if those DCF assumptions hold good.

Supported by growth momentum?

A risk to Admiral is the high level of competition in the insurance sector, which may squeeze its margins. Another is any further surge in the cost of living that may prompt customers to cancel policies.

However, its 2025 results, released on 5 March 2026, showed profit before tax jumping 16% year on year to £958m. The rise was powered by Admiral’s core underwriting and cost‑discipline initiatives. Insurance revenue increased 9% to £4.98bn, highlighting continued momentum across UK Motor, Household, and European lines as pricing and customer retention improved. Turnover remained buoyant at £5.9bn, reflecting the successful integration of the ‘More Than’ business into Admiral’s UK portfolio.

These numbers highlight a business with strengthening fundamentals and operational leverage that should continue to drive earnings growth ahead, in my view.

My investment view

This combination of rising dividend potential, strengthening operational momentum, and deeply-discounted share price means I will be buying more of the stock soon.

I also think these elements make it a compelling candidate for long‑term investor consideration.

In short, it offers the rare blend of dependable income today and the possibility of meaningful gains as the market closes the gap between price and value.  

The post A 6.8% forecast yield! 1 often-overlooked FTSE 100 income stock to buy today? appeared first on The Motley Fool UK.

The Tesco share price is down just 5% over the last turbulent month. Given the scale of losses elsewhere, that’s pretty impressive. It’s not as impressive as FTSE 100 motor insurer Admiral Group (LSE: ADM), though. Its shares climbed more than 11% over the same period. Only two FTSE 100 stocks have done better — oil giants BP and Shell. That’s pretty remarkable. Can Tesco and Admiral continue to do well?

Solid FTSE 100 stocks

I’d have thought Tesco would be on the front line of current volatility. As oil prices rise, food production and transport costs could jump too. The cost-of-living crisis is back even before it was over. There have even been lurid headlines warning of food rationing. And with all the political noise around profiteering, Tesco may struggle to pass on higher costs without attracting criticism.

If costs rise faster than Tesco can increase prices, margins could be squeezed. On the other hand, it may be better placed than rivals to withstand a price war.

The Tesco share price has been powering on for some time. As of early this morning it was up 45% over the last year and had doubled over five years. It isn’t especially cheap as a result, with the price-to-earnings ratio nudging 17. The dividend yield has dipped below 3%.

I prefer to buy shares after a pullback, when valuations tend to be more attractive and yields higher. That said, Tesco is holding up well, and I can see why investors might still consider buying its shares.

But why is Admiral flying? If customers are feeling the pinch, I’d expect them to shop around for cheaper car and home insurance, intensifying competition in an already cut-throat market. It could be that the shares are still getting a lift from a strong set of results on 5 March. Pre-tax profit jumped 16% to a record £957.9m, while the customer base grew 7%.

The board also raised the dividend by 7% to 205p and treated investors to a special payout of 17.2p per share. Admiral isn’t just a UK story either, as the board highlighted strong results in France and a rapid recovery in Italy. Unlike Tesco, Admiral’s shares were treading water before this recent surge. They’re still up just 9% over one year and 8% over five.

There are risks here too. Beyond squeezed customers, claims inflation remains a concern, as higher repair and replacement costs could eat into margins if pricing doesn’t keep pace. In contrast to Tesco, Admiral still looks reasonably priced, with its P/E ratio just under 13. The income is juicier too, with a trailing yield of 5.1%.

I’m surprised both stocks are holding up so well. Both could still struggle if Middle East tensions intensify. But I think they’re worth considering, especially Admiral for that income stream. Personally though, I’m on the hunt for FTSE 100 shares that are cheap after taking a much bigger beating, but have long-term recovery potential. I can see plenty out there right now.

The post Should investors consider buying resilient Admiral Group and Tesco shares as markets wobble? appeared first on The Motley Fool UK.

In other words, businesses that can keep paying (and ideally growing) their dividends through good times and bad. How does that look in practice?

Well, here are two FTSE-listed companies that not only fit the bill but also look heavily undervalued right now.

MONY Group

MONY Group‘s (LSE: MONY) a good example of this type of business. It runs a host of comparison sites which earn fees by connecting customers with insurers, lenders and other providers. It’s a simple online model that doesn’t require heavy capital spending.

Revenues have been growing steadily, recently hitting a record £445m, with earnings slowly rising 1%-2% a year. That indicates steady growth despite a tough backdrop for some consumer markets. And with cashflow improving, the board recently launched a share buyback, suggesting confidence in the business.

But the real kicker lies in the low valuation. Estimates suggest it’s trading at around 53% below fair value using a discounted cash flow (DCF) basis. So why is the market so pessimistic about its long-term prospects?

It may be because it’s exposed to online advertising trends and competitive pressure in the price comparison sector. A downturn in customer activity or higher costs could put pressure on profits and future dividends.

But the yield makes it undeniably attractive, sitting at roughly 7.5%. The payout ratio of 82.4% is a bit high but okay for now. Encouragingly, its debt-to-equity ratio is only 0.14, meaning borrowings are very low, and return on equity (ROE) is a punchy 34%.

That shows just how well management is squeezing a lot of profit out of shareholders’ capital.

Admiral Group

In 2024, Admiral Group (LSE: ADM) reported an impressive set of numbers, with profit before tax jumping 90% to about £839m. Earnings per share (EPS) rose an astonishing 95%, and turnover grew 28% to just over £6.1bn.

But it’s important to note these are likely one-off results. That bounce reflects an unusually strong recovery in the UK motor insurance sector. A drawn-out period of heavy claims inflation means premiums have been raised to catch up with rising repair and parts costs.

The main watchpoint is leverage: a debt-to-equity (D/E) ratio of 1.3 is on the high side, which makes it more sensitive to shocks, and the insurance cycle can turn quickly if claims costs spike faster than premiums.

Still, the valuation and income profile are appealing. Trading at roughly 48% below its estimated DCF fair value, it offers a 6.4% dividend yield and payout ratio of 83.2%. High, but acceptable, given its profitability — ROE at 53% is exceptionally high for an insurer.

A wealth of opportunities

For UK investors aiming to build a sustainable second income stream, identifying the right characteristics makes all the difference. Attractive yields, strong return on equity, and undervalued share prices are just three important factors to consider.

MONY Group and Admiral are just two examples of undervalued dividend stocks to consider right now. But with geopolitical and economic shocks happening on a daily basis, it’s critical to keep track of how markets are impacted.

The post Why do 2 of my favourite second income stocks look so cheap right now? appeared first on The Motley Fool UK.

This could signal a bargain buying opportunity for one of the UK’s most reliable high-yield stocks.

So, is it?

Powered by solid earnings growth

Any company’s share price is driven by a sustained rise in its earnings (‘profits’) over time. A risk to Admiral is any further surge in the cost of living that could prompt customers to cancel policies.  

However, analysts’ consensus forecasts are that its earnings will grow 5% a year to end-2028. This looks extremely conservative to me, based on its recent run of results.

The latest of these — full-year 2025, released on 5 March — saw pre-tax profit surge 16% year on year to £958m. This was supported by a 7% rise in motor insurance profit and by other UK insurance lines and Admiral Money.

This latter division offers unsecured personal loans, car finance, and specialist mortgages. Overall, the operation more than doubled its profit in 2025, as did the firm’s other UK non-motor insurance businesses. 

How much yearly dividend income?

Admiral’s current dividend yield is 5.3%, based on 2025’s 175.9p payout and its current £32.91 price. This far outstrips the FTSE 100’s present 3.1%. However, analysts forecast the dividend yield will rise to around 7% by the end of 2028.  

So, investors considering a £20,000 holding in the firm (the same as mine) could make
£20,193 after 10 years. And after 30 years, this could rise to £142,330.

These figures are based on the average 7% forecast yield, but this can alter over time. They also assume that the dividends are reinvested into the stock to harness the turbocharging effect of ‘dividend compounding’.

After 30 years — the end of the standard investment cycle for long-term investors — the holding’s value could be £162,330.

And this would generate an annual income from dividends of £11,363!

Deeply discounted price

Price is not the same thing as value in stocks. The former is whatever the market will pay at any moment. But the latter reflects the fundamentals of the underlying business.

The difference between the two is crucial for the profits of long-term investors over time. This is because asset prices (including shares) tend to converge to their ‘fair value’ over the long run.

The cornerstone method to establish any stock’s fair value is discounted cash flow analysis. This identifies where any stock should trade by projecting future cash flows and discounting them back to today.

Some analysts’ DCF modelling is more bullish than mine, depending on the variables used. However, based on my own DCF assumptions — including a 7.2% discount rate — Admiral shares are 47% undervalued at their current £32.91 price.

This implies a fair value for the shares of around £62.09 — nearly double where they trade today.

That gap suggests a potentially terrific buying opportunity to consider today if those DCF assumptions prove accurate.

My investment view

Admiral looks a rare mix of dependable income, steady earnings growth, and major undervaluation for the quality on offer.

Consequently, I will add to my holding in the stock very soon and think it well worth the attention of other investors.

The post Down 11%! Time for me to buy more of this FTSE 100 dividend gem at a dirt-cheap price? appeared first on The Motley Fool UK.

Markets are rattled by the war with Iran and rising oil price. It’s hugely worrying on both a humanitarian and investor level, but a stock market sell-off may also a buying opportunity for the brave. I’m looking at two FTSE 100 stocks that look good value today, while yielding more than 5%. Should investors consider them?

Admiral shares hold steady

General insurer Admiral Group (LSE: ADM) tempts with a modest price-to-earnings ratio of 12.4 and generous trailing yield of 5.5%. It’s also one of only a handful of FTSE 100 stocks to be in positive territory today. I suspect it’s still benefiting from last Thursday’s strong full-year results. The board flagged up an “exceptional” performance from its UK motor division as group pre-tax profit climbed 16% to a record £957.9m. Customer numbers increased 7%, as the business continues to grow despite a competitive insurance market.

The dividend per share rose 7% to 205p and the company further rewarded loyal investors with a special payment of 17.2p. Admiral shares are now forecast to yield 6.15%.

Longer-term share price performance has been bumpy though. The stock is broadly flat over the past 12 months and up only about 4% over five years. There are risks. If oil prices continue rising, pressure on household finances could intensify. Motorists might shop around harder for cheaper insurance or cut back on driving to save fuel. Some households could even sell second cars if living costs climb further.

Yet the market reaction suggests investors still see Admiral as a relatively defensive business with strong pricing power.

NatWest Group’s stock gets cheaper

The big FTSE 100 banks have taken a knock lately, including NatWest Group (LSE: NWG). Its shares are down more than 12% over the past month, pushing the price-to-earnings ratio below 8.5. That looks striking given that only a weeks ago it was starting to look expensive with a P/E of 15.

That number was slashed by a strong set of full-year results on 13 February, with earnings per share jumping 27% to 60.8p. Profits surged 24.4% to £7.71bn in 2025 and the group announced a £750m share buyback covering the first half of 2026.

Banks are vulnerable to a wider economic shock. A surge in living costs could hit both households and businesses, increasing the risk of loan impairments. There’s also concern about stress in private credit markets, although other banks may be more exposed.

Yet in one respect, an oil-driven inflation spike may support profits. If interest rates rise, or cuts are delayed, that could help banks maintain net interest margins, the difference between what they pay savers and charge borrowers.

Both shares are well considering with a long-term view. If the crisis deepens, their prices could fall even further. I can see lots of other bargains surfacing as the FTSE 100 sinks.

The post 2 cheap shares with 5%+ yields to consider buying as markets plunge appeared first on The Motley Fool UK.

The question right now for investors is whether there are opportunities to buy shares at attractive prices. I think there are, but not necessarily in the most obvious places.

Iran conflict

Stocks have been falling this week for a number of reasons. In a few cases, they’re specific to individual businesses – like disappointing earnings – but there is one major theme. 

Conflict in Iran has sent oil prices up, but it’s had the opposite effect on industrial metals. A notable example is copper, which is set to finish the week down around 5%. 

That’s bad news for the likes of Antofagasta and Anglo American. Those stocks had been surging on higher copper prices, but a change of direction for the metal has sent them down.

One issue with copper is that supply is notoriously inelastic – it takes much longer to open a copper mine than to set up an oil well. And that means changes in demand are hard to offset. 

This, combined with the growth of data centres and the shift to renewables makes a strong long-term case for copper. So there’s a reason to think the decline is a potential opportunity.

Despite this, I’m not convinced the stocks that have been falling are the best opportunities right now. In fact, I think the ones that have been going up might be even more attractive.

Buying up

There aren’t many FTSE 100 shares that have done well this week. But one name that’s catching my eye right now is Admiral (LSE:ADM). 

The stock is up 4% this week and that’s a big difference compared with the decline in the wider index. Despite the relative move, though, I think the share price still looks attractive. 

Since the start of the year, the situation is pretty much the opposite – the stock is down while the index is up. But the reason I’m interested isn’t just that it’s underperformed recently.

Investors are concerned right now about a challenging time for the car insurance market. A shift to electric vehicles means more expensive repairs and this is a challenge.

I think that’s a good reason to avoid most insurance stocks. But it could also be a chance to invest in some of the best in the business at unusually low valuations.

Admiral’s big strength is its data. That allows it to maintain better underwriting margins, which should give the firm a big advantage – especially in an inflationary environment.

Long-term investing

Falling share prices can be great opportunities, but investors need to look beyond the last week. The FTSE 100’s recent reversal doesn’t undo the theme of the last few months.

With that in mind, I’m still focusing on what I see as quality companies, such as Admiral. Rather than cyclical mining stocks, I’m concentrating on durable long-term strengths.

Fortunately, these have been out of fashion for some time and that’s still the case despite this week’s moves. So I’m looking to keep buying for as long as the opportunity is there.

The post Why the FTSE 100 fell almost 5% this week appeared first on The Motley Fool UK.

Personally, I’m leaning towards the former. HSBC Holdings and Barclays are topping my shopping list after falling 9% and 12% respectively last week. The biggest FTSE 100 faller was British Airways owner International Consolidated Airlines Group, which slumped 18%. But I already hold that.

Still, I’m also curious about a brace of blue-chips that have taken this week’s troubles on the chin. Could these two thriving concerns prove better opportunities?

Admiral Group shares climb

The first is general insurer Admiral Group (LSE: ADM), whose shares rose 5% over the week, making it the FTSE 100’s single biggest climber.

The stock was boosted by a strong set of full-year results on Thursday (5 March), driven by what the company called an “exceptional” performance from its UK motor division. The shares jumped 7.6% on the day as the board reported a 16% rise in pre-tax profit to a record £957.9m. Customer numbers climbed 7%.

Shareholders were rewarded too. The board increased the dividend per share 7% to 205p and declared a special dividend of 17.2p. Admiral’s already a solid income stock, with a trailing yield of around 5.2%. It doesn’t look expensive either, trading on a price-to-earnings ratio (P/E) of roughly 12.4.

However, the shares have been fairly subdued over longer periods. They’re up just 6% over the last 12 months and only 4% over five years.

Motor insurance is a cyclical and competitive market, and rivals will be gunning for Admiral after these strong results. Still, Admiral looks well worth considering, particularly for income-focused investors.

Airtel Africa also performs

The week’s second-best performer was Africa-focused telecoms group Airtel Africa (LSE: AAF). It didn’t release results last week but the shares still rose 4.7%. The Airtel Africa share price is now up 150% over the last year and an extraordinary 360% over five, making it one of the FTSE 100’s top performers.

I suspect investors see Africa as largely insulated from Middle East tensions. I’ve always viewed Airtel Africa as an aggressive growth play but now its showing its defensive qualities. Everybody wants a mobile phone today, and customers typically pay through fixed monthly contracts. That said, telecoms firms like BT Group and Vodafone have been volatile over the years.

Airtel Africa beats them both with a massive growth. During the nine months to 31 December, it reported a 28% increase in revenue and a 41% rise in operating profit. The company is also partnering with Elon Musk’s SpaceX to expand network coverage, saving it a fortune on building new infrastructure.

The firm has previously been hit by currency volatility in Nigeria, so some of its recent strong performance may be bouncing back from that. It isn’t cheap. The shares trade on a trailing P/E ratio of around 80, although that falls to roughly 21.5 on a forward basis and it may be worth a closer look.

Are these two the best? That depends on an investor’s personal goals. Both Admiral and Airtel Africa carry risks, but show FTSE 100 companies can still thrive in tricky markets. A little diversification can go a long way in days like these.

The post As markets plunge, are these the 2 best FTSE 100 stocks to buy today? appeared first on The Motley Fool UK.

Take AEW REIT (LSE:AEWU) and Admiral Group (LSE:ADM). As well as having yields of 7% or above, these passive income heroes have other qualities that make them great value picks to consider

Want to know why they could turbocharge passive income? Read on.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Top trust

Real estate investment trusts (REITs) are designed to provide a larger and more reliable income stream than most other dividend shares. At least 90% of their rental earnings must be paid out each year, in exchange for juicy tax breaks.

Companies like AEW REIT enjoy a steady stream of rental income they can use to fund shareholder payouts. In this case, dividends are paid four times a year. The question is, can the business continue doing so given tough conditions in the broader economy?

After all, the trust is exposed to highly cyclical sectors like industrials and retail. On balance, though, I’m confident in its future dividend prospects. It has 132 tenants on its books, which guards group profits from widescale rent collection and/or occupancy issues.

What’s more, the weighted average unexpired lease term (or WAULT) until expiry sits at 5.6 years. This provides solid near-term earnings (and by extension dividend) visibility.

But what makes AEW REIT such an attractive value stock today? It doesn’t only provide plenty of bang for one’s buck with its 7.5% forward dividend yield. It trades at a handy 5% discount to its net asset value (NAV) per share.

FTSE 100 dividend star

At 7%, the dividend yield on Admiral’s shares is the third-highest on the FTSE 100. Can it meet City analysts’ lofty income expectations? I think so.

Unlike many high-yielding financial services shares, Admiral operates in the stable general insurance market. Consumer spending here remains largely unchanged across the economic cycle, providing dependable premium income it can distribute through dividends.

This company’s ace in the hole, however, is its dominant position in the motor insurance market. In the UK, it insures more cars than any other and has a 14% market share. It also has positions in overseas markets. This is important, as motor coverage is a legal requirement, providing earnings with additional protection.

Admiral’s cash-rich balance sheet also provides future dividends with support. According to latest financials, its Solvency II capital ratio was 194%, well above regulatory requirements.

There’s no such thing as a risk-free dividend share. In this case, dividends could fall short of forecasts if costs spike again, putting margins under strain. Admiral also has significant competitive pressures to navigate to keep growing earnings and payouts.

But on balance, I think it’s a solid dividend stock to consider today. It also trades cheaply right now. Its forward price-to-earnings (P/E) ratio of 12.3 times is way below the 10-year average of 17-18.

The post 2 dirt-cheap dividend stocks to consider in March with 7% yields! appeared first on The Motley Fool UK.

But how much could a £20,000 Stocks and Shares ISA generate in income? That depends on how generous the dividend yield is on the shares you own. The good news is there are hundreds of high-yield UK dividend shares that could supercharge your ISA income.

Here are five, which — with an average dividend yield of 8.4% — could deliver a £1,680 income over the next year, based on a £20k lump sum invested equally across them.

Two top trusts

I like the idea of holding real estate investment trusts (REITs) for dividends. In fact, they’re set up to furnish investors with a dependable income — sector rules state 90% or more of annual rental profits must be paid out.

I hold a number of investment trusts myself. And a couple that I’m also looking at are Alternative Income REIT and Tritax Big Box REIT. These businesses have their tenants locked down on ultra-long contracts — weighted average unexpired lease terms are 17.2 and 10.2 years respectively.

This on its own doesn’t eliminate dividend threats. After all, occupancy and rent collection issues can spring up if their clients go bust. However, these trusts have dozens of tenants, which significantly reduces the danger.

This durability underpins healthy dividend yields of 4.9% for Tritax and 7.4% for Alternative Income

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

10%-plus dividend yields

Renewable energy producers can also be a reliable source of dividends. Two I think are worth considering today are Octopus Renewables Trust and Greencoat UK Wind. Their yields are an enormous 11.5% and 11.3% respectively.

Electricity is in high demand across the economic cycle, providing steady cash flows these businesses can pay out to shareholders. These companies have fallen sharply in value more recently, reflecting worries of lingering inflation and its impact on interest rates. Higher rates push up borrowing costs and dent profits.

I’m not expecting this to impact either Octopus or Greencoat’s dividend prospects, though, given the strength of their respective balance sheets. Over time I also expect their share prices to recover as green energy demand balloons.

A FTSE 100 income share

Admiral Group (LSE:ADM) is another top dividend share to consider. With a 7% yield, it’s actually the fourth-highest yielding share on the FTSE 100 today.

The recurring cash it receives from insurance premiums helps underpin its chunky dividend payments. While it faces competitive pressures and cost strains, no share is completely without risk, as I’ve shown. In this case, I think Admiral’s defensive qualities still make it a top income stock to consider.

History shows that general insurance demand remains stable across the economic cycle. This is especially the case in the motor segment. As the UK’s largest provider in this area — it had insured 5.8m cars as of mid-2025 — Admiral also has significant scale and brand strength to boost profits and by extension dividends.

The post These 5 income stocks could turn a £20k ISA into a £1,680 passive income! appeared first on The Motley Fool UK.

I’ve been trawling the UK’s blue-chip index for companies that look good value and yield at least 5% a year. These three jumped out and now may be a brilliant time to consider buying them, because if their shares rise so will their valuations, while those yields will come down.

NatWest shares soar

Today, NatWest Group (LSE: NWG) combines a bumper 5.3% trailing dividend yield with a lowly P/E ratio of just 9.1. A high yield and low valuation can be a sign that their stock is struggling, but that’s not the case here.

The NatWest share price is up a hefty 40% over the last year, and a fabulous 220% over five. All dividends are on top of that.

Higher interest rates have given the big banks an opportunity to widen net interest margins, the difference between what they pay savers and charge borrowers. Profits are surging as a result. In the case of NatWest they’re up 24% to £7.7bn in full-year 2025. However, growth may slow with interest rates likely to fall.

Also, NatWest is heavily focused on the UK, and the domestic economy isn’t exactly thriving. But given the income and entry price, I still think it’s well worth considering with a long-term view.

LandSec has recovery potential

High interest rates haven’t been as helpful for real estate investment trust (REIT) Land Securities Group (LSE: LAND). LandSec is one of the UK’s largest commercial property owners and developers, with a diversified portfolio of offices and shopping centres. Unfortunately, it’s been hit by the working from home trend, online shopping and the cost-of-living crisis.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Rising inflation and interest rates then pushed up the cost of capital, while economic concerns have knocked gains from property disposals.

The Landsec share price has had a volatile five years, climbing just 8.5% in that time, but there are signs of recovery as it’s up 16.7% in the last year.

With interest rates expected to fall, the outlook is getting brighter and while Landsec isn’t as cheap as NatWest, a P/E of 13.2 isn’t bad. The trailing yield of 6.1% is rather good. There are still risks, but the rewards may start to flow and I think Landsec is also worth considering for income seekers, with a minimum 10-year view.

Admiral rate of income

Motor insurer Admiral Group (LSE: ADM) combines a stunning trailing yield of 6.67% with an inexpensive P/E of 13.3. Its shares were flying last summer, with first-half interim result showing pre-tax profits up 69% to £521m, driven by strong performances in its UK motor, household and Admiral Money operations.

Since then, the stock has been somewhat volatile. It spiked about 3,600p last year, but has since fallen 20% to 2,865p. Over 12 months, it’s up a modest 4%. However, this could offer new investors an opportunity to bag that income at a decent price.

Admiral has been hit by a slew of broker downgrades, as tough motor insurance competition and continued high claims inflation threatens margins. This is a cyclical sector, so share price ups and downs are to be expected. But it’s still worth considering. The shares may be bumpy in the short term but with luck, the dividends should compensate.

The post A once-in-a-decade chance to buy 3 cheap stocks with fabulous yields? appeared first on The Motley Fool UK.