With a fresh £20,000 allowance now available for Stocks and Shares ISA investors, here are four FTSE 250 bargain shares to consider.

Bellway

Bellway (LSE:BWY) shares have plunged 20% over the past month. A slight markdown to profits forecasts in late March hasn’t helped the housebuilder’s cause. But what’s really sent it lower is the Iran war and its potential impact on inflation and interest rates.

Things could remain bumpy for the whole housebuilding sector. But could now be a dip buying opportunity to consider? I think so. Bellway’s price-to-earnings-to-growth (PEG) ratio has plunged to 0.3 for this financial year (to July 2027). It remains below the value watermark of one through to financial 2029, too.

I expect the builder’s shares to bounce back over time, propelled by rising newbuild demand as the UK population grows. The government reckons 300,000 new homes are needed every year to meet this demographic challenge.

Ibstock

This enormous structural opportunity should also help brickmaker Ibstock‘s shares recover. They’ve dropped 6% over one month, reflecting worries over a cooling housing market.

It’s not just the prospect of a new housebuilding revolution I’m excited by. As an investor in this FTSE 250 share myself, there’s also considerable revenues potential from the rental, maintenance, and improvement market (RMI).

How so? The UK’s housing stock is one of the oldest in Europe. So Ibstock’s services should experience high demand as homeowners and landlords invest to renew their properties.

Ibstock shares trade on a forward PEG of 0.1.

ITV

ITV‘s share price has slipped 9% over the last month. As the Iran war escalates, the threat of weaker advertising revenues for commercial broadcasters is growing.

Yet I think the Love Island maker is worth a close look from dip buyers. Its forward price-to-earnings (P/E) ratio has dropped to 9.8 times.

In my view, the long-term outlook here is pretty exciting. Viewership of the firm’s ITVX platform continues to boom — in fact, it’s the UK’s fastest-growing streaming service. What’s more, I’m expecting profits to soar at the ITV Studios production division, as demand for content heats up among global platforms.

Lion Finance

Lion Finance shares have also dropped 9% over the past month. It’s a decline that leaves the stock looking attractively priced in terms of expected growth and dividends.

The Georgian bank’s forward P/E is 5.9 times, while the dividend yield is a FTSE 250-beating 3.7%.

Rising inflation could boost Lion Finance if it leads to margin-boosting interest rate hikes. The problem is, it could also lead to significant turbulence by capping economic growth, hitting financial services demand, and pushing up credit impairments.

Still, the longer-term picture for the bank remains robust given the underlying strength of Georgia’s economy. And at current prices I think it deserves serious consideration.

The post Looking for ISA bargains? 4 FTSE 250 value stars to consider appeared first on The Motley Fool UK.

With interim results, the UK housebuilder downgraded its full-year outlook. “The ongoing conflict in the Middle East heightens the risk of both inflationary cost pressures and an impact to customer demand, and we have already seen volatility return to the mortgage market,” said CEO Jason Honeyman.

Oil is soaring oil, inflation is almost certainly returning, and mortgage rates are beginning to rise. That’s a painful combination for companies building homes. And for Lloyds, whose business depends heavily on the mortgage market.

What to do?

I can see only one sensible reaction to a short-term shock like this. That’s to consider buying shares in housebuilders like Bellway. And mortgage lenders like Lloyds. In fact, that’s exactly what I’d want to do if I didn’t already have enough in Lloyds shares. And if I didn’t already have a stake in house construction too.

It can be tempting to load up on our favourite stocks when prices are down. Never mind what we already own, just pile in to cheap shares. But we still need caution. When stock markets are shaky and the FTSE 100 has hit a technical correction, I reckon we should still stick to discipline — and by that I mainly mean keeping our stock investments well diversified.

Rebound already?

Bellway still expects to deliver full-year underlying operating profit in the range of £320m–£330m. And that would still beat the £303.5m recorded for the year ended July 2025.

As I write the day after the results, Bellway shares are already on a 6.5% rebound. And Lloyds shares are up 3% at the time of writing. A 4% forecast dividend yield at Lloyds looks tempting too, especially as forecasts have it growing nicely in the next few years.

But what happened in the past 24 hours to lift the investor gloom?

Daily politics

Well, President Trump has been talking up his peace plan for Iran. And oil has backed down from over $100 per barrel again.

But I don’t think it’s too stretching to suggest following Donald Trump’s daily utterances might not mark the most rational investing strategy. What we long-term investors surely need to do is try to ignore daily politics, and get our heads round the long-term prospects of the stocks we’re interested in.

So, too cheap?

On that basis, I remain convinced that Lloyds and Bellway are good value now. The recent honeymoon period for banks is possibly over, mind. And it could be some time before we get back to the bullish mood we were seeing just a few weeks ago.

That means share prices could still be volatile, and I could be back to wondering when my Lloyds shares will finally be priced to recognise their long-term value. In the meantime, I’d say investors should consider buying on the dips — but maintain diversification.

The post Are depressed Lloyds shares just too tempting to miss now? appeared first on The Motley Fool UK.

In fact, it’s down a further 10% on Tuesday (24 March) after releasing first-half trading numbers. At £19.21 per share, its price-to-earnings (P/E) ratio has slumped to 11.5 for this financial year (to July 2026). For financial 2027, this drops to 9.5.

The question is, are Bellway shares now irresistible at today’s prices?

What’s happened today?

The FTSE 250 builder’s falling furiously after slashing full-year forecasts. Chief executive Jason Honeyman commented that “the ongoing conflict in the Middle East heightens the risk of both inflationary cost pressures and an impact to customer demand, and we have already seen volatility return to the mortgage market.”

Underlying operating profit for this financial year’s now tipped at between £320m and £330m, below broker estimates of £334m. The business also trimmed the underlying operating profit margin target to 10.5%, down around half a percentage point.

For the first half, Bellway actually performed pretty strongly. Revenues of £1.5bn were up 6.3% year on year, and slightly ahead of broker estimates as completions and selling prices rose.

Underlying operating profit increased 1.5% to £159m, though this wasn’t as impressive. The underlying operating profit margin dropped to 10.5% from 11%, causing the bottom line to miss forecasts.

Still, Bellway’s first-half performance was largely robust. And it encouraged the business to raise its full-year completion target to 9,300-9,500 homes from 9,200 previously.

Weakness appearing

Markets are forward looking, so it’s no surprise investors chose to focus on Bellway’s reduced profit expectations going forwards. And especially as Bellway is already showing signs of trouble.

As of 16 March, the builder’s forward order book was 5,311 homes, down 4.9% year on year. And its order book value was down 1.9% at £1.5bn.

Weekly private reservation rates per outlet since 1 February have also dropped to 0.7 from 0.76 in the same 2025 period.

Bellway has said “the situation in the Middle East has not had a material impact on trading” at the moment. But investors are asking, how bad could things get as interest rates and mortgage products become less favourable for buyers?

Are Bellway shares a potential buy?

As I say, Bellway’s share price drop leaves it trading on rock-bottom P/E ratios. But that’s not all — the builder’s price-to-earnings growth (PEG) ratio remains below 1 for both the next two financial years. At 0.3 and 0.4, in fact, it’s well below inside value territory.

Today’s price weakness has also pumped the dividend yield to a chunky 3.6% for this year. It rises to 4.2% for fiscal 2027.

So is the FTSE 250 stock a top value share? I think it’s worth serious consideration, as from a long-term perspective the housing industry outlook remains robust, driven by government policy and the UK’s booming population. But investors need to be prepared for some serious volatility in the meantime.

The post Down 32% and with a P/E of 9.5, is this FTSE 250 share too cheap to ignore? appeared first on The Motley Fool UK.

If payouts rise 30%-70% over a few years and are well covered by earnings, that’s more meaningful than a stretched 10% yield that risks a cut.

With that in mind, I’ve identified three FTSE stocks forecast to grow dividends by 40% or more by 2028: Bellway (LSE: BWY), Lloyds and Rolls‑Royce.

The question is: how accurate are these forecasts?

Kicking the tyres

Starting with Lloyds, the dividend per share (DPS) was 3.64p in 2025. Forecasts point to 4.18p this year, 4.6p in 2027 and 5.06p in 2028. That’s around a 40% total increase over three years.

That steady growth combined with a starting yield comfortably ahead of cash savings can really add up for patient investors.

Bellway and Rolls‑Royce are even punchier. Bellway’s ordinary DPS is currently 70p per share, forecast to edge up to about 70.6p this year, then jump to 90.1p in 2027 and 100.9p in 2028. That’s a total increase of roughly 57% between 2025 and 2028.

Rolls‑Royce starts from a much smaller payout, with a total dividend of only 9.5p per share for 2025 after its recent restart. But brokers expect 12.6p in 2026, 14p in 2027 and around 16.7p in 2028, which is about 76% growth over the same period.

Those last two names are clearly more cyclical and rely on continued earnings momentum, but the dividend growth profile is hard to ignore.

Taking a closer look at Bellway

Bellway is the outlier here. Although it sits alongside two very well‑known FTSE 100 giants, it’s a FTSE 250 mid‑cap with an excellent track record. The housebuilder has paid dividends for 41 years without interruption, which is impressive given the number of housing slumps and interest rate cycles it has lived through.

The dividend policy targets cover of around 2.5 times earnings, with the current payout ratio at about 52.7%. That’s a comfortable middle ground — generous, but not reckless.

The balance sheet shows very low debt of about £48.7m and cash of roughly £146m. Impressive numbers, even after launching a £150m share buyback.

Importantly, cash coverage of 2.64 times gives it extra breathing space if the housing market slows (or build costs rise). Basically, there’s enough cash to fund operations and still pay shareholders without having to lean heavily on borrowing.

That doesn’t mean it’s risk‑free. As a housebuilder, it’s exposed to the domestic housing cycle. Weaker prices, higher mortgage rates or tighter lending could all hurt profits or pause dividend hikes.

The bottom line

For UK investors, Bellway’s an interesting example of what quality dividend growth should look like. It’s got a four‑decade track record, a sensible payout ratio, and strong cash coverage. That means a forecast of more than 50% in three years is not unrealistic.

But whether it’s right for you depends on how comfortable you are with the ups and downs of the housing market. For investors willing to ride out volatility for the chance of strong income growth, it’s a share that deserves a closer look — in addition to more familiar names including Lloyds and Rolls‑Royce.

The post 3 dividend shares tipped to increase payouts by 40% (or more) by 2028 appeared first on The Motley Fool UK.

One example is Bellway (LSE:BWY). The stock is trading at a price-to-book (P/B) ratio below 1, but a look at the company’s track record actually paints quite an impressive picture.

UK housebuilding

The UK’s long-term shortage of housing is well-documented. And within this promising market, Bellway occupies an interesting position. 

Its average selling price is between Persimmon and Barratt Redrow. This puts it in a position to appeal to both premium buyers trading down in a crisis or people trading up in a booming market.

The company also has an outstanding reputation for quality. It’s maintained a 5-star rating from the Home Builders Federation for almost a decade, and was the Large Housebuilder of the Year in 2025.

In short, Bellway offers customers high-quality properties and relatively reasonable prices. And whether it’s the stock market or the housing market, that’s an attractive combination.

Growth

Bellway’s share price has gone nowhere in the last 10 years, but investors should look at the business. Revenue growth has been slow, but the firm’s book value has increased much faster.

In 2015, the difference between the company’s assets and its liabilities was £1.5bn. Fast forward to 2025 and the gap has more than doubled to £3.6bn, despite the stagnant share price.

One reason for this is the firm’s approach to its balance sheet. Bellway has traditionally been more resilient than other housebuilders in downturns, but this comes at the cost of revenue growth. 

That might not be a bad thing over the long term. But there is another reason for the difference between sales growth and book value growth that’s a bit more concerning.

Assets

Like a lot of housebuilders, the majority of Bellway’s assets are inventory – these are essentially its land bank and its work in progress. And this is something investors need to be aware of.

Rising inventory levels can be a good thing. Houses aren’t built overnight, so companies need to have properties ready to go if demand suddenly picks up  – and this is what inventory provides.

There is, however, also a risk. It can be a sign that properties aren’t selling and having capital tied up in stock limits a company’s ability to invest in growth or return cash to shareholders. 

Bellway’s strong reputation for managing its balance sheet might mean it earns the benefit of the doubt. But high inventory levels do make a weak housing market more of a problem. 

A gift for value investors?

There are obvious reasons to be interested in the UK housing sector at the moment. And Bellway has a well-earned reputation for growing its book value while managing its risks carefully.

Despite this, I think investors need to tread carefully. Rising inventories represent potential future growth, but it needs the market to be strong enough to convert that into cash. 

That’s why my pick for the industry is Vistry Group. A focus on partnerships with housing providers, rather than open market sales, helps limit the build-up of excess inventory, which is why it’s the stock I’m buying.

The post Are UK housebuilders a gift for value investors right now? appeared first on The Motley Fool UK.

That said, they rose over 5% on the 14 October release of the firm’s full fiscal year 2025 results. And I was not surprised for two key reasons.

First, the results document also contained the announcement of a £150m share buyback to be completed within a year. These tend to support share price gains. And second, the overall numbers looked very good.

Housing completions jumped 14.3% year on year to 8,749 homes at an average selling price of £316,412 (against 2024’s £307,909).

Revenue climbed 16.9% to £2.783bn, while underlying operating profit soared by 27.5% to £303.5m. Earnings per share came in at 176.7p – a rise of 30.7%.

Looking ahead to 2026, the firm expects a healthy order book and work-in-progress position will support its growth plans. This is for completions to rise to 9,200 and for the average selling price to be around £320,000.

Bearish and bullish factors

A short-term risk factor flagged by the firm is ongoing housing affordability constraints in the UK. It highlighted that these could be exacerbated by potential stamp duty hikes in the upcoming 26 November Budget.

I think other hikes in taxation remain a long-term risk too, adding to the already heavy cost-of-living pressure for many.

I believe another longer-term risk is the government failing to meet its target of 1.5m homes being built over its five years. Every government under which I have lived has failed to meet this objective.

However, more bullish are the government’s changes to the Planning and Infrastructure Bill announced on the same day as Bellway’s results. These are aimed at streamlining the approval process for major housing projects, helping it to meet its 1.5m target by 2029.

Consensus analysts’ forecasts are that Bellway’s earnings will rise by a robust 17% a year to end-fiscal year 2027.

And earnings growth is the key driver of any firm’s share price (and dividends) over the long term.

Is there a major price-to-valuation gap?

A stock’s price is simply whatever the market will pay at any point. Its value reflects underlying business fundamentals. The gap between the two is where the big long-term investments can be made, in my experience. This is because over time asset prices tend to converge to their true value.

The best tool I have found to identify this gap is the discounted cash flow model. This pinpoints where any stock price should be trading, derived from cash flow forecasts for the underlying business.

For Bellway shares, it shows they are 32% undervalued at their current £25.30 price.

Therefore, their fair value is £37.21.

My investment view

I am sceptical about any UK government’s commitment to dramatically increase the housing stock. I am also sceptical that the longstanding cost-of-living crisis will abate any time soon.

So the UK housing sector, and therefore Bellway, is not for me.

However, I do think that its earnings prospects will push it share price much higher over the long term. Therefore, for less sceptical investors – particularly those at an earlier stage of the investment cycle – I think it IS worth considering.

The post Down 20% but with 17% forecast annual earnings growth, is it time to consider this FTSE construction high-flyer? appeared first on The Motley Fool UK.

For a basic rate 20% taxpayer, every £100 invested only costs £80, falling to £60 for a higher rate 40% taxpayer. On top of that, dividends and capital gains grow tax-free. Currently, a quarter of the pension pot can be withdrawn free of income tax from age 55 (rising to 57 from 2028).

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.

Building a passive retirement income

So how much would an investor need to save to grab a passive income of £999 a month? That’s nearly £12,000 a year, and while it isn’t enough to retire in luxury, it could help to build a solid foundation for a comfortable lifestyle.

Using the classic 4% safe withdrawal rule, a second income of £999 a month would require a pot of around £300,000. A saver could reach that target in 25 years by putting around £370 a month into their SIPP, assuming a 7% annual growth rate. With 40% tax relief, the monthly outlay falls to £222.

Over decades, the combination of tax relief and compound growth can make hitting £300,000 a realistic prospect for disciplined investors. Especially those who increase their contributions over time, and throw in the odd lump sum when they have one to hand.

I’ve built my own SIPP around a mix of FTSE 100 stocks, balancing potential share price growth with dividend income to create a passive income stream.

Housebuilding stocks look cheap

One company I’m keeping an eye on is FTSE 250-listed housebuilder Bellway (LSE: BWY). Like many stocks in this sector, it has struggled lately.

The Bellway share price is down around 20% over the past year, but it’s now showing signs of recovery, rising more than 10% in the last month.

Bellway offers a modest dividend yield of 2.15%, lower than peers like FTSE 100 housebuilder Taylor Wimpey, which yields around 9%, but it could still play a role in a diversified SIPP.

On 12 August, the Bellway board reported strong home completions and an average selling price ahead of guidance. Net cash turned positive, giving it flexibility to expand its landbank.

Like every housebuilder, it faces problems, as many potential buyers struggle with affordability, due to high house prices and the cost-of-living crisis. A few interest rate cuts could quickly change that, by reducing mortgage costs. But with inflation still well above the Bank of England target, we may have to be patient.

Bellway shares look decent value, with a price-to-earnings ratio of just over 18. Analysts are optimistic. Consensus forecasts a one-year share price of 3,162p. If correct, that’s a potential 25% jump from today’s 2,512p. Forecasts are little more than educated guesses, but I still think the stock is well worth considering for patient long-term investors.

Housebuilders like Bellway offer potential capital growth alongside dividends, but they’re cyclical and sensitive to economic swings. Exposure to a mix of other stocks and sectors can smooth returns while contributing to long-term wealth.

With discipline and patience, £999 a month from a SIPP isn’t a pipe dream. It’s achievable, but it won’t happen overnight. The sooner investors crack on, the better.

The post How much do you need in a SIPP to target a pension income of £999 a month? appeared first on The Motley Fool UK.

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.

Every tax year, investors can put away up to £20,000 in an ISA. But how much is required to generate a tax-free income of £1,750 a month in later life?

Shares compound and grow

This is where the 4% withdrawal rule comes in. It suggests that taking 4% of a retirement pot each year should ensure the pot lasts for life, rather than running dry. To generate £21,000 a year, the ISA would need to be worth around £525,000.

That’s a hefty sum, but with regular contributions and long-term reinvestment of dividends, it’s not impossible. An investor who tucks away £650 a month and achieves an average annual total return of 7% could get there in 25 years. Starting early and giving time for contributions to compound and grow can mean the difference between modest savings and a serious retirement income.

Bellway: FTSE 250 recovery stock

One stock I’ve been watching closely is Bellway (LSE: BWY). It’s a housebuilder that has been hit hard by high mortgage rates and stretched affordability. Over the last 12 months, its share price has dropped 26%. In fact, it’s currently trading around the same level as a decade ago.

Yet, it’s showing signs of progress. On 12 August, Bellway reported completions up by 14.3% to 8,749 homes, slightly ahead of guidance. It expects to build 9,600 homes in 2026, while the average selling price last year was £316,000, up from £307,909. The government’s planning reforms should help, although the system remains slow and young buyers still face affordability barriers. Patience is required here.

The stock currently trades at around 17 times earnings. That’s not screamingly cheap, but it’s decent value given the growth prospects. The trailing yield is 2.74%, but forecasts suggesting that will hit 2.88% in 2025 and 3.32% in 2026. In contrast to cash, income from shares should rise over time, provided management can keep generating the cash to fund it.

Building a balanced portfolio

The housing sector still faces challenges. Another rate cut this year looks increasingly unlikely, employment data is weak, and affordability pressures haven’t gone away. Yet for patient investors, Bellway’s mix of a solid land bank, operational strength, and rising dividend potential makes it worth considering as part of a diversified portfolio.

The bigger lesson here is not to rely on any single stock. A portfolio that blends income-focused shares with growth potential can help deliver both rising dividends and capital appreciation, tax-free in a Stocks and Shares ISA.

Reaching £525,000 won’t be easy, but with discipline and most of all, time, it’s an achievable target. The earlier the journey begins, the more chance there is of achieving that £1,750 a month second income. Or with luck, more.

The post How much do you need in an ISA to target a £1,750 monthly passive income? appeared first on The Motley Fool UK.

Completions in the year grew 14.3% to 8,749 homes, with the average selling price rising 2.6% to £316,000. And this is over a year with interest rates still high.

If this is what we see now, how might things take off when mortgage costs come down further? That’s what excites me about the housebuilding business in general.

Show me the cash

There’s no denying the business has been through a few tough years. And Bellway’s underlying earnings per share dipped disappointingly last year to 135.2p, down 59%. We’ll have to wait for the full results report, due 14 October, for this year’s figure. But we do have one tantalising balance sheet update.

Bellway ended the 2024 financial year with £10.5m net debt. A year later, and that’s turned round into £42m net cash. And we’re well ahead of broker forecasts, which didn’t predict a net-cash year until 2026.

The company reports a “strong land bank and outlet opening programme,” which should help it towards a full-year 2026 target of around 9,200 home completions. That’s actually only a modest 5% rise. So is Bellway beaing cautious in the face of the uncertainty we still face?

To me, this hints at a positive thing to watch for when the construction industry is under pressure. It can provide an opportunity for companies like Bellway to firm up their land holdings in preparation for the next bull run. Next bull run, I say? Well, it might be a cyclical business. But in a market like housing, which has a chronic supply shortage, the odds are surely in favour. Aren’t they?

Not there yet

The housing business is not out of the woods yet. Global tariffs and trade wars are already helping push UK inflation again. It edged up to 3.6% year on year in June, well above the Bank of England’s long-term target of around 2%.

The next interest rate cut? I fear it might not be for some time. So maybe the share price weakness will continue for a while yet. The lacklustre market reaction to this update does seem to point that way.

The question for me is whether the current stock valuation is low enough to provide a safety margin against near-term uncertainty. We’re looking at a forecast price-to-earnings (P/E) ratio of 15. And it might turn out lower considering these completions and selling price beats.

If earnings grow as predicted, we could see a multiple of 10.5 by 2027. I’ll need to weigh it against my current housebuilder holdings, and how Bellway compares to other stocks on valuation terms. But that’s low enough to put Bellway firmly on my list of considerations for my next buy.

The post This FTSE 250 stock’s valuation looks tempting, as FY sales beat guidance appeared first on The Motley Fool UK.

Fast-rising dividends

Falling home sales have had a devastating impact on some housebuilders’ dividends in recent times. Take Bellway (LSE:BWY) of the FTSE 250 — it froze dividends in the financial year to July 2024, at 140p per share. And it slashed them to 54p the year after.

The good news is that City analysts expect industry-wide dividends to rise from here as homebuyer demand rebounds. At Bellway, they’re expecting shareholder payouts to grow rapidly over the short to medium term, as shown below:

Latest trading news from the company today illustrates why brokers are perhaps right to be so confident.

For the 12 months to 31 July, Bellway’s total completions rose 14.3% to 8,479 homes, while average selling prices nudged up to £316,000 from £307,909. Both figures came in ahead of expectations.

Revenues were up 17% at £2.8bn, while the underlying operating margin rose 1% to 11%. This led Bellway to predict “strong profits growth” for the period.

Looking ahead, a strong order book underpins hopes of further improvement in financial 2026. This consisted of 5,307 homes as of 31 July, up from 5,144 the year before, and with a higher value of £1.5bn versus £1.4bn previously.

Robust forecasts

There are still risks to its recovery, of course. An inflationary spike could curb Bank of England rate cuts, hitting buyer affordability. A stagnant economy and rising unemployment could also hit sales volumes and selling prices.

However, I believe the builder can meet those upbeat dividend forecasts, even if market conditions turn choppier.

For financial 2026 and 2027, profits are tipped to rise 15% and 21%, respectively. This means predicted dividends are covered 2.4-2.5 times by projected earnings.

You’ll know that any reading above two times is said to provide a wide margin of safety.

Furthermore, dividend forecasts are supported by the company’s improving balance sheet. It swung to a net cash position of £42m as of 31 July from net debt of £10.5m at the same point in 2024.

Higher completions, moderating build cost inflation, and improving capital discipline should continue to support cash generation going forwards.

A cheap dividend share

Bellway is confident of selling 9,200 homes this financial year, up roughly 450 year on year. I believe the builder’s in good shape to meet this target, supported by further interest rate declines and by its robust landbank.

There are risks here, but I think this is reflected by the firm’s low valuation. For both financial 2026 and 2027, Bellway shares trade on a sub-1 price-to-earnings growth (PEG) ratio of 0.9 and 0.5, respectively.

I believe this dividend and growth share’s a great stock to consider for long-term investors. Over time, I reckon profits will surge as a soaring population drives demand for more homes.

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