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.

With that in mind, two more I’m looking to snap up when I can are Empiric Student Property (LSE: ESP) and Supermarket Income (LSE: SUPR).

Here’s why I’ve taken a liking to both stocks!

Student accommodation

Similar to the UK housing market, demand for student beds across the UK is outstripping supply. This could be good news for Empiric, and its shareholders. Performance and returns could grow in the future.

The pandemic hurt Empiric, as many students retreated home, and then deferred studies. Since then, the business has rebounded, in my view. This is perfectly signified by today’s preliminary results for the year ended 31 December 2023.

Revenue and earnings per share jumped by 10% and 17% compared to the same period last year. Gross margin levels have increased too and 99% revenue occupancy was achieved for 2023/24. The dividend has been hiked by a mammoth 27%. A yield of 3.8% is in line with the FTSE 100 average. However, I’m conscious dividends are never guaranteed.

One issue I’ll keep an eye on moving forward is the foreign student visa demand. These students often take up a big chunk of student beds, which is good news for Empiric. However, a recent government investigation found fraudulent visas were being applied for and obtained. If these numbers were to drop due to any new rules, Empiric’s performance and returns could drop.

Supermarket Income

As the name suggests, the business provides supermarket-related properties and facilities for our favourite stores to operate smoothly. I reckon there’s a sense of defensive ability for Supermarket Income. This is because groceries are essential for day-to-day living.

I must admit I’m buoyed by Supermarket’s impressive client list to date. At present, major players including Aldi, Tesco, Morrisons, and Sainsbury’s all rent property from it. Ties with the biggest players in the market that all possess a sprawling presence can only boost performance and returns. If it can leverage these relationships into further rentals and contracts, there could be good times ahead.

In addition to this, as the population increases and more infrastructure and facilities are needed, Supermarket Income could find more of its properties rented by grocery businesses to keep up with rising demand.

A dividend yield of just under 8% is very enticing, and the main reason the shares caught my eye.

From a bearish view, a difficult property market driven by higher interest rates and inflation could make growth trickier. New assets could be costly, or Supermarket Income could overpay for any new properties. This could hurt performance levels, and returns in the future. I’ll keep an eye on this issue.

I reckon Supermarket Income is one of a number of REITs that should flourish when turbulence subsides.

The post 2 REITs to help me build an additional income stream appeared first on The Motley Fool UK.

Student accommodation properties

Empiric is set up as a real estate investment trust (REIT) and focuses on student accommodation buildings. The great thing about REITs is that they are obliged to return 90% of their profits to shareholders as dividends, making Empiric a potentially juicy income stock if you ask me.

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.

Let’s take a look at Empiric’s share price in recent times. As I write, the shares are trading for 89p. At this time last year they were trading for 86p, which is a small 3% gain over a 12-month period.

The bull case

When the pandemic struck and remote working became the norm, virtual studying also rose in numbers. Many students even deferred their studies so businesses like Empiric saw its uptake and performance dented. However, I can see from recent performance and results that the business has bounced back well.

A trading update Empiric released last week made for excellent reading. CEO David Garrood said the booking cycle for the 2023/24 academic year had “exceeded all expectations”. The results showed that 99% revenue occupancy had been achieved. Like-for-like growth in average weekly rents jumped by over 10%.

As with any income stock, I want to understand my level of return. A dividend yield of 4% is attractive, especially when I consider the FTSE 250 average yield is 1.9%. A separate dividend declaration after the trading update showed an interim dividend hike of 16% compared to the same period last year.

Finally, data shows that there is a shortage of student beds compared to rising demand. This is good news for Empiric. If it can help fulfil this demand, its performance and payout could increase.

An income stock I’d buy with risks to bear in mind

One of the bigger issues Empiric may face, at least in the short term, is that of rising interest rates. Commercial properties become harder and costlier to obtain during these times so Empiric could find its propensity for growth slashed.

Another factor that could hurt Empiric is a focus by the government on curbing foreign student visas. Recent investigations have shown many fraudulent student visas being obtained and a review is underway. If any bans or tighter controls were implemented, Empiric could find its performance dented.

Overall I believe Empiric is a good income stock that could boost my holdings. The business is on the up, and could experience strong demand for years to come which should boost performance and returns.

Realistically speaking, I don’t have lots of cash in the bank to buy every stock I like. However, I’d be willing to buy some Empiric shares when I next have some cash to invest.

The post Is this 4% yielding income stock one to buy or avoid? appeared first on The Motley Fool UK.

Companies that generate most or all of their profits from these shores could find it especially difficult in the short-to-medium term. Analysts at Bloomberg Economics are predicting a 52% chance of a recession due to higher-than-normal interest rates and rising unemployment.

Yet I believe now is still a good time to buy UK shares for dividends. There are many rock-solid stocks out there that should still pay a good second income in the current climate. Here are two on my radar right now.

Empiric Student Property

Purchasing residential property providers is a good idea in tough times. This is because having a roof over one’s head is one of life’s non-negotiables.

It’s why I think Empiric Student Property (LSE:ESP) is a great buy right now. Studies show that university participation doesn’t fall when economic conditions worsen. So this real estate investment trust (or REIT) is expected by City analysts to deliver strong earnings growth over the next few years.

Empiric is on a roll right now. It announced last week that like-for-like rental income leapt 10.5% for the 2023/24 academic year, a result the company said “is largely the result of a higher level of late cancellation and rebooking activity“. Revenue occupancy, meanwhile, came in at a forecast-beating 99%.

Given the industry’s weak development pipeline, the huge accommodation supply problems that are helping to deliver these strong numbers look set to persist.

Pleasingly for income investors, Empiric hiked its dividend forecasts for the full financial year on the back of its strong recent performance. It now intends to pay a 3.5p per share reward, up from a previously designated 3.25p, which would represent a 27% year-on-year improvement.

REITS are required to pay 90% of annual rental profits out in the form of dividends. So I expect Empiric to be a solid income provider for years to come. I’d buy it even though higher interest rates could persist, keeping its net asset values (NAVs) under pressure.

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.

Wynnstay Group

Agricultural products supplier Wynnstay Group (LSE:WYN) is another UK share with above-average dividend yields that I’m considering buying. Its yield for 2023 sits at a market-beating 4.4%.

Food is one industry in which demand remains constant at all points of the economic cycle. And so this Alternative Investment Market (or AIM) company is expected to keep hiking dividends in spite of the tough macroeconomic outlook.

Wynnstay supplies animal feeds, seed, and fertiliser, and operates a grain marketing service. Revenues here rose 22% between January to June, to £409.1m, even as fertiliser prices receded from levels recorded in the aftermath of the Ukraine war.

The company has completed more than 50 acquisitions to boost its position in its highly fragmented industry and grow profits. Acquisition-related activity can be risky business, but Wynnstay has a great track record on this front. I think it could also be a great buy for long-term dividend growth.

The post 2 passive income stocks I’d buy for 2024 as the UK economy sinks! appeared first on The Motley Fool UK.

Empiric Student Property

Real estate investment trusts (REIT) can be terrific stocks for income investors. This is because they are obligated to distribute a minimum of nine-tenths of their profits out in the form of dividends.

Empiric Student Property (LSE:ESP) is one such property share I’m considering investing in today. As its name implies, the company is focused on providing accommodation to university students. This is a market that is undersupplied and therefore one in which rents are growing strongly.

Empiric’s latest financials showed its average weekly rents for the 2022/23 academic year rise 5.2% on a like-for-like basis. Occupancy grew to a record high of 98%, meanwhile, illustrating the scale of the market’s supply and demand imbalance.

The business is expecting a rise of at least 5% in the current academic period, too. This explains why City analysts are so bullish on the REIT’s earnings outlook.

Current forecasts suggest earnings will boom 32% year on year in 2023. This leaves Empiric trading on a price-to-earnings growth (PEG) ratio of just 0.2. This is well inside the value yardstick of one and below.

This robust projection leads analysts to predict strong annual dividend growth, too, and a market-beating 4.2% dividend yield.

There’s a possibility that long-term earnings here could suffer if changes to student immigration rules come into force. In recent months, the Home Office has floated the idea of limiting the number of overseas students. However, I believe this risk is baked into Empiric’s ultra-low valuation.

The PRS REIT

The UK is also suffering from a massive shortage of family homes in the rental sector. This means that income at The PRS REIT (LSE:PRSR) also continues to steadily increase.

Rental income here rose 5.7% on a like-for-like basis in the three months to December, most recent financials showed. Total occupancy also stood at a rock-solid 97%.

I’m expecting private rents to keep increasing too as supply fails to keep up with demand. In fact data from property data business TwentyCi shows that the number of new instructions slumped 7.8% in 2022 as the exodus of buy-to-let investors continued.

I think PRS could be a great defensive stock to own for the current climate, too. Thats despite the risk that elevated construction costs pose to profits.

Spending on rent is one thing that remains broadly stable at all points of the economic cycle. So I’m backing PRS’ rent collection to remain solid despite the threat of recession.

Like Empiric Student Property, this REIT trades on a PEG ratio of just 0.2. It also carries a healthy 4.5% dividend yield for the financial year to September 2023. I think both these value shares could be great sources of long-term passive income.

The post 2 dirt-cheap dividend shares I’d buy for long-term passive income appeared first on The Motley Fool UK.

I don’t have bottomless reserves of cash. But here are three more of these property stocks I’m looking to buy if I have spare money to invest.

Residential Secure Income

I think Residential Secure Income (LSE: RESI) could be a perfect pick for these uncertain times. As the name suggests, this REIT specialises in renting out residential accommodation. Having a roof over our heads is one of life’s necessities and so income here remains stable at all points of the economic cycle.

I’d also buy the UK share because private rents in the UK are booming. Estate agent Hamptons says that tenants in England and Wales spent a record £71.5bn on rent in 2022, driven in part by rising rental costs. I expect this trend to continue too as Britain’s property shortage drags on.

Today, Residential Secure Income carries a healthy 5.6% dividend yield. I’d buy it even though high construction costs may remain a big problem in 2023.

Empiric Student Property

Student accommodation provider Empiric Student Property (LSE: ESP) offers excellent all-round value right now. It carries a 4% dividend yield for 2023 and trades on a price-to-earnings growth (PEG) ratio of 0.6. Any reading below 1 shows that a stock is undervalued.

The UK is also suffering from a shortage of quality student rental property. A weak development pipeline — allied with predictions of growing student numbers — suggests the problem will get worse in the years ahead too. So rents at Empiric should keep growing strongly.

Changes to immigration policy affecting foreign students could dent the firm’s future earnings. But right now, the business looks set for strong long-term profits growth.

Big Yellow Group

Self-storage specialists like Big Yellow Group (LSE: BYG) aren’t immune to tough economic conditions. Earnings could suffer if consumers scale back spending on extra space. Demand from small online retailers for stock storage might also dip if shoppers tighten their belts.

But as a long-term investor, I’m still tempted to buy this REIT. This is because Britain’s self-storage market has plenty of room for growth over the next decade, at least. Population growth, smaller living spaces, and the rise of e-commerce will all drive need for additional storage space.

Big Yellow is rapidly expanding to make the most of this opportunity too. It added an extra 191,000 sq ft of space to its portfolio between April and September. It also has 11 sites in development with a total capacity of around 900,000 sq ft.

Today, the FTSE 250 firm sports a 3.8% dividend yield, well above the 3% index average. I expect it to deliver market-beating dividends long into the future.

The post 3 REITs I’d buy to boost my passive income in 2023! appeared first on The Motley Fool UK.

Property stocks like these don’t usually provide the biggest dividend yields. Cyclical shares usually offer much better dividends (pound for pound) when times are good and profits balloon.

But investing for long-term income is about much more than looking for big yields today. I want shares that will pay decent dividends at all points of the economic cycle. I also desire companies that can regularly grow shareholder payouts to offset the impact of inflation on my wealth.

This is why I think REITs are top stocks to buy. Firstly, they have to pay at least 90% of yearly profits to shareholders in the form of dividends. Secondly, the value of real estate tends to rise solidly over time, giving these shares the chance to grow profits strongly.

And finally, these property stocks tend to lock down their tenants on long-term leases. This gives them reliable rental income and therefore the means to pay dividends regardless of broader economic conditions.

Age of Empire

Empiric Student Property (LSE: ESP) is one London-listed REIT I’d consider buying if I had some spare cash to invest. This stock concentrates on the student accommodation market, a sector that’s suffering from extreme supply shortages.

In fact, current shortages drove revenue occupancy at the firm to record highs of 98% for the 2022/23 academic year. Like-for-like rents at the REIT rose a chunky 5.1% year on year too. This offset the impact of rising costs on its profits.

The UK student accommodation market is rock solid. Domestic student numbers are strong and British universities have been attractive destinations for overseas graduates for decades. This provides earnings at the likes of Empiric with an added layer of protection.

Having said that, a change to immigration rules could put a significant dent in Empiric’s profits outlook. The Times reported last week that the government is considering banning foreign students from studying at non-elite universities.

Rock-bottom share price

But as things stand, I still find Empiric’s investment case highly appealing. And despite recent share price gains it remains especially cheap too.

City analysts think earnings here will rise 104% this year. They predict a 28% year-on-year rise in 2023 as well. Consequently the REIT trades on forward price-to-earnings growth (PEG) ratios of 0.3 and 0.7 for these two years.

Any reading below 1 suggests a stock is undervalued.

Impressive dividend growth

This bright profits outlook means Empiric Student Property is tipped to rapidly grow the dividend over the next two years.

Last year’s 2.5p per share reward is expected to rise to 2.6p in 2022 and then to increase to 3.6p in 2023. This pushes a handy 2.9% dividend yield for this year to a fatty 4% next year.

And I expect dividends here to keep growing over the long term as the business expands and profits balloon. Empiric encouragingly praised its “strong pipeline of potential acquisitions and development opportunities” in August.

The post A dirt-cheap REIT I’d buy for healthy lifelong passive income! appeared first on The Motley Fool UK.

Student accommodation

As a quick reminder, a REIT is a business set up and designed to invest in real estate and provide returns to its shareholders. In fact, one of the rules of being a registered REIT is that 90% of profits must be passed to shareholders. REITs can be good for boosting my passive income stream and I already own a few as part of my holdings.

Empiric is a REIT that specialises in investing in and managing purpose-built student accommodation. It targets prime university cities and towns throughout the UK.

So what’s happening with Empiric shares currently? It is worth remembering that a penny stock is one that trades for less than £1. As I write, the stock is trading for 87p. At this time last year, it was trading for 92p, which is a 5% drop over a 12-month period.

The bull and bear case

When researching student admission, I saw that student numbers are increasing, along with demand for student accommodation. Empiric could benefit and continue to boost performance and returns in a burgeoning market. Speaking of returns, the shares currently offer a dividend yield of 4%. This is in line with the FTSE 100 average of 3%-4%.

Covid-19 had a material impact on many universities. Students stayed at home, did not apply for places, and lectures moved online. This new way of learning could have an impact on Empiric. Could there be less of a demand for accommodation if lectures remain online? Furthermore, the threat of new Covid strains still looms large.

Shareholder returns are underpinned by performance. I do understand that past performance is not a guarantee of the future, however. Looking back, I can see that Empiric has recorded consistent revenue and profit for the past four years. This was even the case during the pandemic-affected year of 2020. I’m keen to see whether 2022 results are close to pre-pandemic levels.

With potentially lucrative growth opportunities ahead, I wanted to learn more about Empiric’s price-to-earnings growth ratio (PEG). The general rule here is that a ratio of below one is favourable. Empiric’s current PEG ratio stands at an enticing 0.7.

A penny stock I would buy

Property stocks have traditionally been seen as a good way to combat soaring inflation. I have purchased a number of REITs in the past six months for my holdings. I would also add Empiric shares to my holdings.

The student accommodation market is a burgeoning one, especially with the influx of overseas students. This increased demand has led to a shortage of beds, which in turn, presents an opportunity for firms like Empiric to grow and boost performance and returns.

The post Is this property penny stock one to buy or avoid? appeared first on The Motley Fool UK.

Robust markets

Staffline Group (LSE: STAF) is admittedly in some danger as the UK economy cools. If breakneck inflation persists and companies struggle then demand for its recruitment services could tank.

That said, I’m encouraged by the resilience of Britain’s labour market so far. And this could still encourage me to buy the penny stock today.

Indeed the Recruitment and Employment Confederation announced this week that, “Demand for permanent staff remains buoyant despite increased economic concerns”. Consumer price inflation hit fresh 30-year highs in April yet companies’ hiring intentions for the short-to-medium term has continued to rise.

“Strong start”

Staffline itself celebrated the ongoing robustness of the UK jobs market a month ago as it described the “strong start” it had made to 2022.

The company added then that while economic uncertainty had increased, its “strong market share in resilient sectors” like food distribution, e-commerce, and logistics helps give it decent earnings visibility.

City analysts believe conditions will remain favourable for Staffline as well. They think the penny stock’s profits will soar 246% year-on-year in 2022. And this leaves it trading on a forward price-to-earnings growth (PEG) ratio of 0.1.

Any reading below one suggests that a stock could be undervalued. At these prices I think Staffline is a steal.

Rewards vs risks

Pub operator Marston’s (LSE: MARS) is another penny stock that could suffer as the cost of living crisis intensifies.

It’s a danger that brewing giant Heineken highlighted this week. On Wednesday it said that it the impact of increasing inflationary strain on household disposable income poses “a consequent risk to beer consumption later in the year”.

In the UK, where all Marston’s pubs are located, inflation is tipped to peak at 8.7% in 2022 by the Office for Budget Responsibility. That could really weigh on drinkers’ budgets.

Another cheap penny stock

Naturally the danger of ballooning living costs to pub operators is particularly high. The cost of a pint or a glass of wine at one of Marston’s inns is far more expensive than what you or I would pay for a bottle at the supermarket to drink at home.

Still, as a long-term investor I’m tempted to buy Marston’s for my portfolio. I think a forward price-to-earnings (P/E) ratio of 9.8 makes it too cheap to miss.

Data shows that Brits continue spending larger proportions of their discretionary income on leisure activities like drinking and eating out. This is an established trend that I think Marston’s will profit handsomely from when those current dangers pass.

City analysts believe the penny stock will continue recovering from the damage wrought by Covid-19 lockdowns, too. They think Marston’s will bounce back into profit this year (to September 2022) following two years of losses and grow earnings 38% in financial 2023 as well.

Protection from rising inflation

I think buying property stocks is a good way to protect myself against rampaging inflation. This is because rents by and large rise in line with broader prices. It’s a quality that not all UK stocks share.

I think Empiric Student Property (LSE: ESP) in particular could be a top buy right now. As well as helping me guard against inflation today, it could make me a lot of cash in the years ahead as student numbers jump and the need for dedicated accommodation increases.

Latest figures from the Higher Education Statistics Agency showed the number of UK students leap 8% in the 2020/2021 academic year. The number of full-time first-year students also grew at the fastest pace on record. These numbers illustrate the massive opportunity for Empiric Student Property.

Chunky dividends!

City analysts are expecting the penny stock’s earnings to double year-on-year in 2022. Consequently the company trades on a forward PEG ratio of just 0.3.

I like Empiric Student Property too because of its healthy dividend yields. These sit at 3% and 4.1% for 2022 and 2023 respectively. I’d buy it despite the threat that Covid-19 poses to student enrolment levels in the near term.

Another dividend-paying penny stock to buy

Speaking of high dividend stocks, Centamin (LSE: CEY) is a gold stock whose big yields make it an attractive investment target. The forward yield here sits at a huge 5%.

There’s a couple of good reasons I think Centamin is a great buy today. The first is that I believe gold prices could be on the verge of soaring again as inflationary pressures grow. Demand for gold rises when the value of paper currenices come under scrutiny.

This week Bank of America said that it expects gold to hit $2,175 per ounce in the current climate. That’s around 100 bucks higher than summer 2020’s record peaks.

Production boost

I also like gold stock Centamin because of the steps it’s taking to boost production over the medium-to-long term. The company plans to deliver 500,000 ounces of the shiny stuff each year from its Sukari flagship mine over the next decade. Centamin is on track to dig between 430,000 and 460,000 ounces of gold from its Egyptian asset in 2022.

Centamin’s a great way to make money from a strong gold price in my book. But of course there’s no certainty that precious metal prices will rise. Rapid central bank rate hiking and a robust rise in the US dollar could send gold prices lower.

However, on balance I think — as a long-term investor — that the benefits of owning Centamin shares offset the risks. I also think its undemanding forward P/E ratio of 12.2 times makes the penny stock a great buy (it’s expected to enjoy a 10% rise in annual profits this year).

The post 4 of the best cheap penny stocks to buy in May! appeared first on The Motley Fool UK.

Sellers of big-ticket items like Pendragon might also suffer as rocketing inflation smacks consumer confidence.

That said, I think Pendragon’s cheap price might still make it a great long-term buy today. At 21.6p per share, it trades on an ultra-low forward price-to-earnings (P/E) ratio of 6.5 times.

I’m minded to buy the penny stock as I think sales of its electric vehicles could soar as concerns over the climate emergency grow. The Society of Motor Manufacturers and Traders has previously guided that 300,000 new battery-powered vehicles could roll out of UK showrooms in 2022.

Protection from surging inflation

I think investing in some choice property good stocks could be a good idea too as inflation hits 30-year highs. Many UK companies face pressure from rising prices in some way, shape or form, whether that be through rising costs or falling consumer spending power. Property shares are a good hedge against this as rents tend to rise in line with inflation.

This is one of the reasons I’m considering buying Empiric Student Property (LSE: ESP). But it’s not the only one. Sure, the student accommodation specialist would take a hit if the Covid-19 crisis worsens and university attendances dive again. However, I think the long-term benefits of owning this share outweigh this more immediate danger.

Soaring numbers of overseas students is only increasing the shortage of student beds in Britain. This is steadily nudging rents up and property supply is tipped to continue lagging demand for years to come.

At 89p per share, Empiric Student Property trades on a forward price-to-earnings growth (PEG) ratio of just 0.2. This is well inside the widely-accepted bargain benchmark of 1 and below.

Another dirt-cheap penny stock!

Pub operator Marston’s (LSE: MARS) is another penny stock that could suffer if Covid-19 rates increase and lockdowns return. Investors already have to tolerate a big dollop of risk here as labour costs rise.

But it’s my opinion that recent share price weakness here represents a terrific buying opportunity for long-term investors. Today, the firm trades on a forward P/E ratio of 10.2 times.

I’m encouraged by news that sales here were bouncing back before Omicron emerged and fresh restrictions followed. Revenues were up 1.3% in the eight weeks to 27 November, Marston’s said last week.

Britons were spending more and more money on leisure activities like drinking and easting out before the Covid-19 emergency. Those fresh numbers suggest this positive trend remains in tact and could power profits at pub operators like Marston’s in the years ahead.

Today, the UK leisure share trades at 81p per share. I’m thinking it could be too cheap for me to miss.

The post 3 mega-cheap penny stocks to buy in February appeared first on The Motley Fool UK.

A report by the National Union of Students illustrates why the likes of Empiric might be a brilliant purchase for me. A shortage of new beds means that the average rent for purpose-build student accommodation has rocketed 61% over the past decade. An average cost of £7,374 per year in 2021/22 is also up 16% from pre-pandemic levels.

Latest data on student enrolments suggests that accommodation will remain scarce, too, thus keeping rents moving northwards. University clearing service UCAS has earlier said total applications in this academic period are up more than 8% year-on-year.

Profits at Empiric and its peers could suffer if applicants from the EU continue to fall post-Brexit. But all things considered I think the accommodation provider is an excellent penny stock for me to buy.

A golden era?

I think Greatland Gold (LSE: GGP) is another top penny stock for me to buy. Precious metals prices remain in a broad holding pattern but I believe an environment of high inflation could send them spiralling higher. Forecasters at Société Générale think gold will trade at around $1,900 per ounce by the second quarter of 2022. That’s up around 130 bucks from current levels.

With key inflation readings recently surpassing analysts’ expectations, though, I think there’s a good chance gold could perform better than some think. The rate of price rises are already pretty hair raising: consumer price inflation in the US hit 6.8% in November. That’s the highest reading for 40 years.

Another top penny stock I’d buy

I wouldn’t just buy Greatland Gold because of the bright near-term outlook for gold values, though. I’m also encouraged by recent news from the miner concerning exploration work at its Haveiron gold-copper project. Fresh drilling work at the mine in Western Australia revealed “significant” mineralisation in 19 of the 24 drilled holes. A $16m share placing last month gives the penny stock plenty of financial clout to develop the mine as well.

I’m aware that any setbacks with bringing Haveiron online would have a significant impact on Greatland Gold’s revenues. It could also have massive implications on overall costs. Considering that the business isn’t expected to turn a profit this financial year (to June 2022) this could prove particularly spooky for investors and prompt a sharp share price reversal.

Still, it’s my opinion that the potential rewards at Greatland Gold outweigh these risks. The bright outlook for gold prices and the quality of its Australian assets makes the miner a worthy buy in my opinion. Just like Empiric Student Property, I’d happily buy the company today for 2022.

The post 2 of the best penny stocks to buy for 2022! appeared first on The Motley Fool UK.