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.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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.

The post 5%+ dividend yields and P/Es below 11! 2 FTSE 100 shares to consider appeared first on The Motley Fool UK.

Dividends are central to investor returns, with rules stating at least 90% of yearly rental profits be returned to shareholders. But that’s not the only thing that sets them apart. They often have tenants tied down to long-term contracts, providing excellent earnings visibility.

Many also have a huge and diverse tenant base, which reduces damage if one or two clients run into trouble. Over time, rent collection and property occupancy remain robust.

In the UK, there are more than 40 REITs that ISA investors can choose from. Here are three to consider — a £20,000 ISA invested equally across could deliver £1,300 in dividends in just one year.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Tritax Big Box

Tritax Big Box (LSE:BBOX) operates a portfolio of more than 100 distribution centres across Britain, offering excellent diversification. A large number of these are let to major blue chip companies, too, providing extra reassurance to investors. These include Amazon, Tesco and Rolls-Royce.

The logistics market has significant growth potential following years of underinvestment, and driven by trends like changing supply chain management and the rise of e-commerce. But that’s not the only reason I’m excited, as Tritax is also branching out into data centres to capitalise on the AI boom.

Rising interest rates could hit earnings in the near term. But the outlook remains strong over the longer term, helped by Tritax’s huge development pipeline. The dividend yield here is 5.5% for 2026.

AEW UK

AEW UK‘s forward dividend yield is even higher, at 8.1%. That’s more than double the FTSE 100 average.

This trust operates a more diversified portfolio, with 34 properties including factories, office blocks, and gyms. It also has a large retail footprint, which creates opportunities as well as problems. Its high street stores and shopping centres are in danger from online retail, but its retail parks should prove more resilient as consumer habits evolve.

AEW’s kept the dividend locked at 8p for the last nine years. Another one is predicted for this financial period (to March 2027), creating that enormous 8%+ yield.

Target Healthcare

Target Healthcare is a REIT I hold in my own portfolio. It’s focused on residential care homes, which is one of the most defensive sectors out there. So I can expect a steady stream of passive income whatever happens to the broader economy.

In total, this one operates 93 care homes across the country. It’s an industry coming under pressure due to skill shortages in the nursing sector. But it’s also one with a significant growth opportunity — by around 2050, the number of over-85s in the UK is tipped to double to more than 3.3m.

Target Healthcare boasts a healthy 6% dividend yield for this financial year (to June 2026).

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This is especially true when it comes to using dividend shares to build a second income. How so?

Mispriced opportunities

Most income investors rank stocks by the dividend yield as a first point of call. There are two components in the yield calculation: one is the dividend per share, which only changes a few times a year; the other is the share price, which changes every day!

Therefore, stocks that have experienced a similar correction to the FTSE 100 are likely to have a higher dividend yield than a month ago (assuming the dividend per share hasn’t changed). In that sense, the second income potential for an investor has shot up, as the average yield on offer is now higher.

Of course, this needs to be treated carefully. Some stocks have been negatively impacted by the conflict in the Middle East. As a result, future earnings could decline, leading to a dividend cut. So careful research is needed to find stocks that have experienced an excessive selloff, driven by broader market sentiment rather than company-specific problems.

In these cases, it’s possible to enjoy an elevated yield that might not last long. If we get a de-escalation in the Middle East or other catalysts that give investors a more optimistic outlook, the market could rally fast.

Some companies have seen the dividend yield jump considerably over the past month. Ashmore Group‘s yield has risen from 7% to 8.05%, while Pollen Street Group‘s has risen from 6.3% to 7.84% (around 25%).

Short-term concern

Another example worth considering is the Tritax Big Box REIT (LSE:BBOX). The dividend yield’s risen from 4.6% a month back to 5.56%, an increase of over 20%. This has mostly been driven by a move lower in the share price over this period, although the stock’s still up 2% over the past year.

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.

The main factor hurting the stock has been concern around higher interest rates. Like most REITs, Tritax is highly sensitive to interest rate expectations, and if rates do increase due to higher energy-driven inflation, the cost of financing new projects will increase.

Investors have been quick to mark down property valuations and rotate away from rate-sensitive sectors. That’s pushed the shares to a notable discount to net asset value (NAV), even as the company continues to perform operationally.

Even though this remains a risk, I believe the decline looks far more about market sentiment than any real deterioration in the underlying business. Structural demand for modern logistics space remains strong, driven by e-commerce and the need for faster delivery networks.

These are long-term trends that play directly into Tritax’s strengths, suggesting that rental growth and occupancy should remain resilient. If interest rate pressures begin to ease, sentiment towards REITs could improve quickly.

On that basis, I think it’s an income stock for people to consider at the moment.

The post How this stock market correction can help boost a second income by 25% appeared first on The Motley Fool UK.

With the Middle East conflict continuing, there could well be more volatility in store. But buying quality stocks on the dip can give one’s investment returns a huge boost over time. I myself often use lower prices as an opportunity to buy discounted shares.

So which FTSE 100 fallers are on my shopping list today? There are several, but here are three of my favourites.

Out of fashion

JD Sports Fashion trades on a forward price-to-earnings (P/E) ratio of 8.2 times. That’s far below its 10-year average of 15-16, and reflects sustained sales pressure as consumers have trimmed spending.

Is the retailer out of the woods just yet? Absolutely not, even though trading in the key US market has been better more recently. Still, the long-term outlook here remains extremely bright, and at current prices I think JD Sports could be too cheap to ignore.

I’m expecting the share price to rebound as its global store expansion drive continues on. Once shoppers loosen the purse strings again, I think profits could take off.

Box clever

Fading hopes of interest rate cuts have hit property stocks in recent weeks. For Tritax Big Box, its borrowing costs are likely to be higher than expected at the start of 2026, weighing on earnings.

But largely speaking, the profits picture here is also pretty robust. I don’t think this is reflected in the FTSE 100 share’s low P/E — at 7.7, it’s well below the long-term average of 11-12.

Tritax’s exposure to blue-chip and non-cyclical companies means rent rolls should remain rock-solid whatever economic challenges emerge. Over the long term, I expect earnings to surge as demand for warehouses and data centre booms.

The best value share today?

Right now, ICG (LSE:ICG) is top of my shopping list. Whatever way you cut it, the alternative asset manager offers excellent value for money.

Its forward P/E ratio is just 9.7 times, while its price-to-earnings growth (PEG) ratio is 0.8. It also offers excellent value based on expected dividends as well as earnings — its dividend yield is a chunky 5.7% for 2027.

Finally, ICG’s price-to-book (P/B) ratio is 1.7. That’s above the benchmark of one, meaning the stock’s trading at a premium to its book value. However, this is the lowest level for three-and-a-half years.

ICG — previously known as Intermediate Capital Group — invests money for institutional clients, chiefly in private markets, and charges fees for the privilege. This leaves it vulnerable during tough periods when investment flows cool.

So what makes it an attractive FTSE 100 share to consider today? It’s not just that brilliant value for money we’ve discussed. ICG has proven its ability to successfully navigate challenging periods, as its 16 straight years of dividend increases illustrates.

The post After the FTSE 100’s slump, these bargain shares are calling! appeared first on The Motley Fool UK.

And with interest rates expected to fall in 2026, REITs could be well placed to increase their payouts further. Here are two interesting opportunities I believe are worth considering.

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.

Super-duper

With seven years of consecutive dividend growth, Supermarket Income REIT (LSE:SUPR) has a strong track record in rewarding shareholders. Based on amounts paid over the past year, the stock’s yielding 7.3%. However, this has to be set against a 20% fall in its share price since January 2021.

But I think the supermarket property sector’s a good one to invest in. Although shopping habits have changed, customers using click-and-collect services still have to visit a store. And home deliveries are picked from the shelves of physical stores.

With blue-chip tenants in the UK and France, including Tesco, Sainsbury’s and Carrefour, the risk of a customer going bust is unlikely. It now claims to have exposure to investment grade tenants of 75%. And with a WAULT (Weighted Average Unexpired Lease Term) of 12 years, it has good visibility of its future income. Both these factors should help it continue to grow its dividend although, of course, there are no guarantees.

Also, the trust’s had a busy November and December buying more stores. This should help it increase future earnings and help it raise its impressive dividend further.

Applying logic

Tritax Big Box REIT has also been raising its payout. In cash terms, over the past 12 months, it’s paid shareholders 18.3% more than it did for its 2020 financial year. It’s now yielding 4.9%.

The trust claims to have the largest logistics investment and land development portfolio in the country. Its 100+ units (or boxes as they’re known) are occupied by some blue-chip tenants including Amazon and Ikea.

The stock trades at a 14% discount to its net asset value. But in a sign that investors are warming to the trust, the gap’s closed significantly over the past six months.

However, sentiment could change if interest rates stay higher for longer. That’s because, in common with most REITs, the trust generally borrows to buy properties. Not only would higher finance costs adversely affect its earnings but it’s likely to limit its ability to borrow more to fund further expansion. Also, the UK commercial property sector can be cyclical.

In its favour, it’s developing a large data centre near Heathrow to capitalise on growth in the artificial intelligence (AI) sector. And e-commerce is also booming. In my opinion, with exposure to both of these — as well as its attractive dividend — Tritax Bigbox has lots going for it.

Final thought

According to the London Stock Exchange: “REITs are a great way of accessing the risks and rewards of holding property assets without having to own them directly”.  

I agree. Fortunately, there are over 40 to choose from, covering a range of sectors and types of property, many of which are offering high yields and attractive passive income opportunities.

The post 2 REITs yielding 4.9%+ to consider for passive income in 2026 appeared first on The Motley Fool UK.

It’s the perfect recipe for large and growing dividends over time. But could investors be losing out on some juicy dividend income by focusing too much on Footsie-listed companies?

I think so. So let me talk about seven incredible FTSE 250 dividend shares I think could supercharge returns in a Stocks and Shares ISA.

FTSE 100 vs FTSE 250

The FTSE 100 and FTSE 250 have both enjoyed solid gains in recent years. However, the Footsie’s 52% increase since late 2020 smashes the 9% gain its less prestigious cousin has reported.

But this has had a serious downside for blue-chip investors, as dividend yields move in the opposite direction to share prices. Right now, the average forward dividend yield on FTSE 100 shares is 3%.

That’s below the 3.4% average for FTSE 250 stocks. And it’s an incredible turnaround given the FTSE 100 is considered the go-to index for dividend income, and the FTSE 250 for growth shares.

As you can see, investing in a FTSE 250 tracker fund could be more lucrative for passive income today. But as an investor myself, I wouldn’t be content with the yield the broader index currently offers.

Why would I be, when there are so many high-yield heroes for me to choose from right now?

6% dividend yield

Take a look at the following portfolio of quality dividend shares. The average dividend yield across this collection is 6%.

That’s substantially higher than the index average, and double what a FTSE tracker fund might deliver:

Okay, this mini-portfolio holds fewer companies than a FTSE 250 tracker fund. But I’m still confident it will deliver a healthy passive income in 2026 alone, given its diversification across sectors and focus on financially robust companies.

Take Tritax Big Box, which has raised dividends in nine of the last 10 years. The only exception was in 2020 when the firm cut payouts in response to pandemic uncertainty.

The company’s real estate investment trust (REIT) classification provides excellent dividend visibility for investors. Sector rules mean 90% or more of its annual rental profits must be distributed to shareholders each year.

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.

This doesn’t guarantee a large or growing dividend on its own. After all, earnings can sink if economic conditions worsen, hitting occupancy levels and rent collection.

But Tritax Big Box’s enormous portfolio significantly reduces this risk. It has more than 150 properties on its books and hundreds of tenants. Its customers — many of which are blue-chip companies like Amazon, Tesco, and Unilever — are also locked into long, multi-year contracts.

Bottom line

The FTSE 100 remains a great place to find dividend stocks. Indeed, I hold several Footsie-listed income shares in my own portfolio. But as you can see, adding other quality stocks like the ones mentioned above can help in the pursuit of passive income.

The post Here are 7 FTSE 250 stocks to target an ISA income appeared first on The Motley Fool UK.

As a consequence, many top shares from London’s second-tier index offer stunning value at the start of October. Here are three I believe demand serious consideration.

Tritax Big Box

Tritax Big Box (LSE:BBOX) shares have tumbled 9% in the year to date. This is because of concerns of higher-than-expected interest rates and the impact on the property stock’s net asset values (NAVs).

I believe the scale of the decline is unjustified. Today the real estate investment trust’s (REIT’s) shares trade at a 23% discount to the value of its NAV per share.

Tritax’s forward dividend yield has also inflated to 5.5%. REIT rules stipulate at least 90% of annual earnings must be paid out in dividends.

I believe Tritax is a trust with exciting long-term growth potential. Its traditional role as a warehouse and logistics operator allows it to benefit from steady e-commerce expansion and ongoing supply chain changes.

And it’s moving into new areas like data centres to diversify and harness the booming digital economy.

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.

TBC Bank

TBC Bank (LSE:TBCG) shares have risen 44% in value in 2025. To put that into perspective, Lloyds and Standard Chartered are the only two UK banks that have posted better gains.

Yet TBC — which generates all its revenues from Georgia and Uzbekistan — still offers industry-leading value. Its forward price-to-earnings (P/E) ratio sits at just 6 times.

To add an extra sweetener, the share’s corresponding dividend yield is a hefty 5.6%.

The bank’s cheapness reflects in large part fears over the political landscape where it operates. Future decisions on Georgia’s relationship with Europe and Russia will have significant long-term consequences for the economy.

However, I believe this uncertainty is more than baked into the FTSE 250 share’s rock-bottom valuation. As market leader, TBC is in the box seat to harness Georgia’s financial services boom, helped by its drive into digital banking.

Allianz Technology Trust

Allianz Technology Trust‘s (LSE:ATT) share price has risen 19% since 1 January. But the investment trust still trades at a substantial 10% discount to its NAV per share.

As one may expect, its focus on tech shares means it’s especially exposed to the US stock markets. Today, more than nine-tenths of its holdings are Wall Street equities. This leaves it vulnerable if there’s a broader selloff of Stateside shares.

Yet, this geographic allocation also gives Allianz’s trust significant opportunities to capture the booming technological revolution. Major holdings like Nvidia and Microsoft are industry leaders with deep pockets and excellent records of innovation. Some 77% of its holdings have market caps of $100bn or above.

What’s more, the 50 companies it holds spread risk across multiple segments and provide exposure to different growth areas like artificial intelligence (AI), robotics, and cybersecurity.

The post 3 bargain FTSE 250 shares that deserve love in October appeared first on The Motley Fool UK.

In recovery

The housing sector’s steady recovery suggests that Springfield Properties (LSE:SPR) may be an attractive dividend share to think about. Helped by recent interest rate cuts and a mortgage market price war, buyer affordability is steadily improving and boosting demand for newbuild homes.

The pace of interest rates cuts remains uncertain. On the one hand, policymakers may feel compelled to cut interest rates to stimulate the weak UK economy. But their appetite to cut could be tempered by the problem of rising inflation.

Despite this uncertainty, Springfield Properties’ perky dividend forecasts merit serious attention in my book. Boosted by land sales in Central Scotland, revenues rose 5.3% in the 12 months to May, while pre-tax profits leapt 95.9%.

Critically for dividends, this recovery pulled the Scottish housebuilder’s net bank debt down to £20.9m at the end of the period from £39.9m a year earlier. So it doubled the full-year cash payout to 2p per share in financial 2025 from a year earlier.

City analysts are expecting further healthy dividend growth, to 2.3p per share this year and 4.5p in fiscal 2027. These figures yield 2.4% and 4.8%, respectively.

Bright forecasts

But how realistic are these forecasts? In my opinion, they’re pretty strong. Dividends for this year and next are covered between 2.1 times and 3.8 times by anticipated earnings. This leaves a wide margin of error in case the housing market recovery weakens.

Balance sheet repairs also put it in a stronger position to weather fresh market volatility, with a net bank debt to EBITDA ratio of just 0.8 as of May.

I’m confident Springfield’s in great shape to capitalise on rising housing demand as the local population grows. It is a leading UK housebuilder. And its new strategy of refocusing on the Highlands, Aberdeen, and Morayshire — where a renewable energy boom is driving jobs creation — could prove especially lucrative.

6% dividend yield

Tritax Big Box REIT (LSE:BBOX) is another dividend share that’s sensitive to interest rate movements. Not only this, but the prospect of a prolonged economic downturn could impact its property occupancy and rent collection.

Yet, City brokers aren’t expecting such risks to impact the real estate investment trust’s (REIT’s) strong recent record of dividend growth. Last year’s reward of 7.66p is tipped to rise to 8p in 2025. Another hike, to 8.4p in 2026, is also anticipated.

As a result, the dividend yield on Tritax shares is 5.7% and 6% for these years.

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.

Shareholder payouts from REITs are sensitive to broader economic conditions. But these property stocks still provide better dividend visibility than most other UK shares, thanks to unique sector rules. At least 90% of rental profits each year need to be returned to investors in the form of dividends.

I’m confident Tritax’s earnings and dividends will steadily rise over the long term, driven by hot growth trends like the growth of e-commerce and booming data centre demand.

The post 2 top dividend shares to consider for a long-term passive income appeared first on The Motley Fool UK.

For UK investors, this mix of uncertainty and opportunity creates fertile ground. I’ve picked out three UK shares that I think strike an interesting balance between growth potential and defensive appeal.

Fresnillo

The Fresnillo (LSE: FRES) share price gained a hefty 30% in August as gold and silver prices surged. That kind of jump is difficult to ignore. With investors increasingly looking for safe-haven assets amid uncertainty around US Federal Reserve policy, this trend looks like it could continue.

Fresnillo is no small operation. It’s the world’s largest producer of silver from ore and Mexico’s second-largest gold miner. Revenue is up 35% year on year to £3bn, while earnings climbed an impressive 78.5%. 

That said, valuation is becoming a concern. With a forward price-to-earnings (P/E) ratio of 19.4, the stock isn’t exactly cheap. If gold and silver prices were to retreat sharply, the Fresnillo share price would likely come back down just as quickly. 

Still, in an uncertain global environment, I think the attraction of safe-haven assets means Fresnillo is worth considering.

Tritax Big Box

Tritax Big Box (LSE: BBOX) is a real estate investment trust (REIT) specialising in warehouses and logistics. It may not sound exciting, but the future looks increasingly bright for this niche sector. Rising demand for data centre facilities is expected to give earnings a healthy boost, while easing interest rates are helping property valuations recover.

At today’s prices, it trades at around a 20% discount to net asset value (NAV). On top of that, it offers a dividend yield of 5.7%.

However, Tritax is vulnerable to property cycles and much of its revenue relies on a few large clients. Losing one large client could seriously dent its profits.

But it does have a strong land bank that benefits from favourable logistics market dynamics. I think it’s worth considering as a means to tap into local AI-related growth without chasing speculative US tech stocks.

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.

Agronomics

For something a little different, Agronomics has been catching my eye. This penny stock is an investment group specialising in cellular agriculture — think lab-grown meat and animal-free dairy products. It’s an ambitious bet on what could become a transformative industry.

The share price is already up 95% in 2025, revealing how much enthusiasm there is for this space. Still, there are real risks. These products could take years to reach commercial viability, and swaying public opinion may not be straightforward. There’s no guarantee that Agronomics will succeed.

That said, for investors looking to get in early on a potentially groundbreaking technology, it could be one of the more speculative — but intriguing — UK shares available today.

Diverse options

From safe-haven mining to logistics property and futuristic food, these three UK shares span very different corners of the market. Each carries its own risks, but together they highlight the diversity of opportunities available right now. 

With global markets on edge, I think September could be an interesting time to explore what the UK market has to offer.

The post 3 UK shares I think are worth considering this September appeared first on The Motley Fool UK.

Inflation, meanwhile, is expected to cool back to around 2%, offering some relief after two years of stubbornly high price pressures. 

So where do analysts think it could go from here?

The US outlook

Across the pond, optimism is slowly building. UBS has just lifted its mid-2026 target for the S&P 500 to 6,800, up from 6,200. That said, the bank has kept its stance neutral, suggesting much of this expected upside might already be baked in.

Morgan Stanley envisions a recovery that could see the index reach 6,500 by mid-2026, with an optimistic high-end target of 7,200 – implying a potential 12% rally from current levels.

The UK outlook

Back at home, things are shaping up a little differently. Fidelity reckons markets may be stuck in a trading range for the rest of 2025. Dividends are forecast to rise by a modest 2% this year but it doesn’t expect a real recovery until 2026. 

JPMorgan sees mid-teen growth in earnings per share (EPS), while Schroders is pencilling in gains of around 12%.

Vanguard is more restrained, projecting UK GDP growth of just 0.8% heading into 2026, with fiscal tightening and a softening labour market dragging on momentum. Still, falling interest rates – from 4% in 2025 down to an expected 3.25% by mid-2026 – could provide some relief for businesses and consumers.

Stocks to watch

Several familiar FTSE 100 names have been tipped to do well in the coming year. Games Workshop, NatWest, 3i Group, Rolls-Royce, BAE Systems, RELX, London Stock Exchange Group, and Halma all feature on analysts’ lists.

But one that really catches my eye is Tritax Big Box REIT (LSE: BBOX). This logistics landlord is moving into the data centre space and with AI adoption exploding, demand for digital infrastructure looks set to climb for years to come.

What I particularly like is its income potential. The shares currently offer a 5.7% yield, backed by 11 years of payments and four years of consecutive growth. Dividends are well-covered too, with payouts representing just 45% of earnings and a cash dividend coverage ratio of 1.05.

Of course, there are risks. As a real estate investment trust (REIT), Tritax Big Box remains exposed to UK property cycles and broader economic downturns. Plus, the nascent AI sector remains plagued with risks. If tighter regulations stifle demand, the company’s growth potential could slow dramatically.

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.

A promising option

Overall, analysts seem cautiously optimistic about where the stock market is heading in 2026. The AI boom is still in full swing, inflation is easing, and interest rates are falling. Against that backdrop, I think Tritax Big Box looks well placed to ride the digital wave – and pay a tidy income along the way.

While there are some risks, its financials look impressive. It has a net margin of 121% with earnings up 127% and revenue climbing 35% in the past 12 months. Add to that a healthy balance sheet with a debt-to-equity ratio of just 0.47 and it’s a stock worth considering in my opinion.

The post Here’s where experts think the stock market will be heading in 2026 appeared first on The Motley Fool UK.