Right now, I can see shares in each category for investors to consider. And they’re not always the most obvious names.

Associated British Foods 

The FTSE 100 currently has a dividend yield of 3.3%. And Associated British Foods (LSE:ABF) is exactly in line with this. 

That makes the next question a straightforward one – is this an above-average business? I think it might be.

The company’s main asset is Primark. And while it’s a retailer, it’s important not to underestimate just how valuable it is. Primark recently reported a fall in like-for-like sales across Europe. But that’s not as significant as it might be. 

It certainly highlights a key risk. When consumer spending is weak, lower sales can lead to price cuts that weigh on margins. Unlike the majority of publicly-traded retailers, though, Primark is still expanding rapidly. Especially in the US.

The firm currently has around 38 stores in the US. But there’s talk of this growing to over 100 by 2030, which is a big increase.

While success isn’t guaranteed, the early signs are promising. And there are also expansion plans in other countries. That means Primark’s growth isn’t limited to like-for-like sales. And it’s why I think dividend investors should take a look. 

Grainger

Despite excess inventory in the UK housing market, affordability issues remain. Enter Grainger (LSE:GRI).

Ultimately, housing is a basic need. And if people aren’t in a position to buy – for whatever reason – they have to rent.

The firm owns and leases residential properties. And it has 11,000 properties with 5,000 more in its pipeline for future growth

In terms of the dividend, the situation is a little complicated. Grainger is becoming a real estate investment trust (REIT). That means the dividend will become mandatory. But the firm should benefit from tax exemptions on its rental income.

Analysts think the result will be a yield of around 5.5%. And that might well be attractive in today’s market. 

There’s obviously a shortage of housing in the UK, so demand for Grainger’s properties should stay strong. But there are risks. One of these is regulation. Shifting standards can result in higher costs and while Grainger is well-positioned right now, that could change. 

In terms of dividends, though, this looks like an interesting business in a durable industry. And I think it’s worth a closer look. 

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.

Income investing

There’s more than one way to be a dividend investor. But the best opportunities are often high-quality companies that the market underestimates.

In my view, both Associated British Foods and Grainger meet this description. Neither is a high-octane bushes, but that’s not the point. 

Both combine decent dividends with strong growth prospects. And that’s what I think investors looking for passive income should prioritise.

The post 2 UK dividend stocks to consider buying in April appeared first on The Motley Fool UK.

JD Sports Fashion (LSE:JD.), Grainger (LSE:GRI) and TBC Bank (LSE:TBCG) are three that have caught my eye this month. Each comes with an ultra-low price-to-earnings (P/E) ratio. But that’s not all that makes them great value stocks to consider buying.

Here’s why they could be too cheap for investors to ignore.

Fashion and sports star

Retailers like JD Sports face severe challenges as surging oil prices fuel inflationary pressures. But could this be baked into this FTSE 100 share’s current valuation? I think so. Fresh share price weakness leaves the sportswear giant on a forward P/E ratio of 6.5 times.

The good news for JD is key brands like Nike and Adidas are regaining popularity with consumers, latest financials show. Collectively, these top-tier brands make up the lion’s share of company sales. Even if shopper spending power becomes more constrained, their excellent brand power could support strong sales at the retailer.

Longer term, I’m optimistic JD’s profits could soar from today’s levels as global store expansion rolls on. Recent price weakness represents a new dip opportunity to consider.

Top trust

Grainger is one of the most attractive dividend stocks on offer today, in my view. Like all real estate investment trusts (REITs), it has to pay 90% or more of its rental profits out in cash to investors.

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.

That’s not all. It’s Britain’s largest listed operator in that most defensive of sectors: residential property. So even if economic conditions worsen and inflation bursts higher, rental income should remain broadly stable.

Higher interest rates will likely hit its share price by raising borrowing costs. This could also weigh on its growth prospects by making new housing developments prohibitively expensive. However, those REIT rules mean Grainger should still be a reliable and generous dividend growth stock.

City analysts agree, meaning a huge dividend yield of 5.1% for this financial year (to September 2025). A forward P/E ratio of 8.9 times provides an extra sweetener for value investors.

The best bank?

TBC Bank is one of the hottest growth stocks out there, in my view. Unlike Lloyds, for instance, which operates in a very mature market, this FTSE 250 bank operates in the fertile Georgian marketplace. This is one that offers the stunning combination of low product penetration and surging demand as the local economy booms.

Like other banking stocks, TBC also stands to gain from more favourable interest rates that’ll boost margins. Rising inflationary pressures are feeding expectations that central banks will stop cutting — or perhaps even hike — their lending rates.

I don’t think these factors are reflected in TBC’s low forward P/E ratio of 5.6 times. Growth could be impacted if the National Bank of Georgia raises rates, hurting the domestic economy. But I think the bank’s challenges are more than baked into that low earnings multiple.

One final thing: the dividend here for 2026 is a gigantic 6.5%.

The post These 3 FTSE 100 and FTSE 250 stocks are now dirt cheap! appeared first on The Motley Fool UK.

Grainger (LSE:GRI) is the UK’s largest commercial landlord. It has – in my view – an enviable portfolio of properties in some attractive locations and strong rent collection metrics to boot. 

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.

Grainger’s portfolio

With any REIT, one of the key things to focus on is its portfolio. It has over 11,000 properties, almost all of which are currently occupied by paying tenants. 

In terms of location, these are distributed across major UK cities. And unlike other residential REITs, a significant number of them are located in London. 

As a result, the company offers the opportunity to invest in property in areas where house prices are prohibitively high. But is this something investors should be looking for?

The rise in artificial intelligence (AI) brings with it an increasing risk of redundancies, especially for white-collar workers. And these are the people that typically live in cities.

There’s a risk that this might lead to lower demand for Grainger’s properties in the future. But investors can gauge the severity of that particular threat for themselves. 

In the meantime, a couple of high-profile investing names have been taking an interest in the stock. And while that’s not itself a reason to buy, it’s worth paying attention to.

Smart money

One individual who has recently been betting on Grainger is Mike Ashley – of Sports Direct fame. The former Newcastle United owner has acquired a stake equivalent to 3.1% of the firm.

I’m choosing my words carefully here, because the number of shares Ashley has actually bought is zero. He’s made his move using derivatives, rather than buying the stock directly.

These are – or should be – almost identical to the underlying shares from an economic perspective. The only real difference is that they aren’t eligible for stamp duty. 

A non-economic difference, though, is that they don’t come with voting rights. So Ashley is presumably planning to be a passive participant, rather than an active investor. 

An institution that has been buying shares, though, is Norges Bank. The firm manages the Norwegian Sovereign Wealth Fund and has increased its stake to 9%. 

The company has over 9,000 equity investments across the world, which is a huge number. But I do think it’s significant that Grainger is on its radar as a stock worth buying. 

Time to buy?

I think there are some really interesting opportunities in UK REITs at the moment. And while Grainger has been on my list, it’s never been my top opportunity. 

News of some high-profile investment names looking to get involved has caused the stock to climb this week. And that’s probably made it slightly less attractive.

If the share price settles down a bit, I might well come back to take a closer look. But for the time being, I think there are more attractive ways to earn passive income from property.

The post Smart investors are betting on this passive income stock appeared first on The Motley Fool UK.

Real estate investment trusts (REITs) allow investors to avoid the high upfront costs and day-to-day management that typically comes with buy-to-let. What’s more, thanks to rules on dividends, these trusts can also be a better way to target a large and stable second income.

Furthermore, if purchased within an ISA, investors don’t pay tax on any of their passive income or capital gains. It’s a perk that buy-to-let landlords would love to have.

With all this in mind, which REIT stocks should investors consider buying today?

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.

Investing in an ISA

The beauty of REITs is that I can have a range of sectors to choose from. Unlike buy-to-let, where investment is restricted to residential property, in the UK I can choose to invest in, for instance:

• Medical centres
• Shopping malls

• Data centres
• Care homes
• Office blocks
• Warehouses and distribution centres

For residential property investment, Grainger (LSE:GRI) is a top trust to consider in my book. It has 11,078 homes spanning the country on its books, and a committed pipeline of 954 more homes to supercharge rental earnings.

Having a wide range of properties like this reduces the impact of rent defaults and empty properties on overall returns. For the last financial year (to September 2025), Grainger’s occupancy averaged an impressive 98.1%.

For buy-to-let investors owning maybe one or just a handful of homes, these dangers are much more severe.

There are risks at Grainger, of course. Government plans to build 300,000 new homes a year might harm future rent growth as supply increases. Rising regulation — such as the Rent Reform Bill this year that limits rent increases and bans no-fault evictions — is another threat to future earnings.

Yet these are threats facing private landlords too.

REIT benefits

I like the idea of investing in residential real estate right now. Rent growth has slowed in the UK, but with Grainger targeting a rise of 3% to 3.5% this year, investors can still expect a solid return on their cash.

I also like the excellent defensive characteristics of residential property. Rental income and occupancy remains steady across the economic cycle, providing excellent long-term dividend stability.

With REITs paying 90% of rental profits out in dividends each year, too, they’re one of the best ways to target passive income in my view.

Targeting a million

By investing in an ISA, individuals can combine buying REITs like this with other shares to target better returns that they could otherwise expect by just buying property.

Since 2015, the average Stocks and Shares ISA has delivered an average annual return of 9.64%. If this continues, someone investing just £500 a month could make more than a million (£1.05m to be exact) in 30 years.

I hold a wide range of REITs and stocks in my own portfolio. I’m confident this strategy will help me build significant wealth over time.

The post Forget buy-to-let! Aim for a million with a Stocks and Shares ISA instead appeared first on The Motley Fool UK.

The details of the Budget will be revealed on 26 November. And while there’s a lot that’s uncertain, investors should be thinking now about changes that could be on the way. 

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.

What are REITs?

REITs are companies that own and lease real estate in the form of houses, offices, warehouses, or just about any kind of property. And they have a unique tax-advantaged status.

Unlike other companies, REITs don’t pay any tax on their income. But they have to return 90% of what they make to investors in the form of dividends.

This makes them very efficient income sources. Where buy-to-let investors have to pay tax on their rental income, REITs can distribute cash to shareholders without having to do this.

Furthermore, savvy REIT investors can use a Stocks and Shares ISA or a SIPP to protect themselves from dividend tax. This is a big benefit – and it might be about to get bigger…

Tax brackets

The Chancellor had been rumoured to be considering increasing income tax. But while that’s been ruled out, a freeze on tax thresholds now seems more likely.

That means people stand to pay more tax as their income increases. And it affects landlords, who pay tax on their rental income.

REIT investors who invest using an ISA or a SIPP, by contrast, are set to be unaffected. And that could make REITs even more attractive to investors than buy-to-let properties. 

If this happens, REITs across the board could get a boost. So now might be the time for investors to have a serious look at the passive income opportunities on offer.

London housing 

One name that I think is particularly interesting is Grainger (LSE:GRI). The firm only became a REIT a couple of months ago, but it has a really interesting portfolio of houses.

Around half of the firm’s properties are located in London. As a result, it benefits from strong demand and there’s not much available space for building, so supply is naturally limited.

One potential risk is the possibility of future changes in rental legislation creating costs and weighing on returns. But it’s worth noting this is also an issue for buy-to-let investors.

At least with Grainger, investors get a management team to deal with this for them. And with roughly 4,500 more properties in the pipeline, the portfolio looks set to grow. 

Long-term thinking

Investors should be thinking about how the upcoming UK Budget might reshape their portfolios. And that includes the rental market and income-generating property investments.

The point isn’t just to be one step ahead of a potential boost in share prices. It’s to be own assets that have better long-term prospects.

If income tax thresholds staying fixed pushes up the amount of tax landlords pay on their rental income, this could benefit the owners of REITs over buy-to-let properties. And it’s being reported as a serious possibility.

As a result, I think investors should take a look at the opportunities in the REIT sector in the UK right now. And Grainger is a new name that’s worth serious attention.

The post REITs might be big winners in the upcoming UK Budget — here’s what to look for appeared first on The Motley Fool UK.

It’s no secret that the hardest part of buying a house is often getting the deposit together as prices just keep going up. But I think this could be a smart way to try and build some wealth to help the process.

Building a deposit

Trying to put together a deposit to buy a house can be a soul-destroying experience and we all know why. Despite higher interest rates in the last few years, property prices just keep going up.

In the last 10 years, the average house price in the UK is up by around 50% and the average wage has increased by about 4%. Forget Netflix, gym subscriptions, and whatever else — that equation just doesn’t work.

Source: Trading Economics

There are lots of theories about why property prices keep going up – I certainly have mine – but that’s a conversation for another day. What matters right now is what to do about it.

To avoid being left behind, future first-time buyers need something that can keep pace with rising house prices. And I think Grainger is well worth checking out as a potential answer.

A ready-made portfolio

Grainger owns and leases a portfolio of over 11,000 houses across the UK. And around half of these are located in London, where demand always seems to be exceptionally strong. 

Source: Grainger Investor Relations

Put simply, this is a way of investing in property. So unless something strange happens, an investment in the company should grow as the value of its portfolio increases with rising house prices.

There are a few reasons why it might not. One is the possibility of changing rental regulations generating a lot of unforeseen costs if Grainger has to keep modifying its buildings.

Other things being equal though, an investment in the firm should be able to keep pace with a rising property market. And we haven’t even got to what I think is the best bit. 

Rental income

As a REIT, Grainger is required to return 90% of its taxable income to shareholders. So investors don’t just participate in rising property prices, they also get cash dividends from the business.

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.

Dividends are never guaranteed, but have been growing steadily over the last decade. And the company reports that a lot of its tenants tend to stay in its properties for the long term.

Grainger also has big plans for future expansion. A future pipeline worth around £1.3bn means it’s looking to add another 37% to the value of its existing portfolio. 

In a market where prices only seem to go higher, that could be worth a lot. And investors can participate in this growth by buying shares in the company without needing a huge deposit.

If you can’t beat ’em…

It feels like first-time buyers in the UK are at a structural disadvantage – and they have been in recent years. But investing in property via REITs is an idea that’s well worth thinking about.

Owning shares in Grainger could help future buyers avoid being left behind by rising house prices while earning passive income on the side. And it’s not the only opportunity worth considering.

The post This REIT offers a way onto the London property ladder for less than £2 appeared first on The Motley Fool UK.

Bank of England actions have also driven up debt-servicing costs, increasing their day-to-day expenses and hampering their growth plans by limiting investment opportunities.

Fears of higher interest rates enduring mean many REITs continue to trade below value. This provides an excellent opportunity for long-term investors to nip in and grab some bargains.

Under sector rules, at least 90% of annual rental earnings must be paid out in dividends. Here are two I think are worth considering for a cheap way to target a passive income.

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

Home run

Full disclosure: while Grainger (LSE:GRI) isn’t a REIT just yet, it’s scheduled to transition into one by October. This makes it worthy of consideration for those building a shopping list of possible shares to buy.

The company’s the UK’s largest landlord in the residential sector. This has two significant advantages: occupancy is high throughout the economic cycle (this was 96% as of March, latest financials show). And rents are rising sharply as Britain’s chronic homes shortage endures.

Like-for-like revenues were up 4.4% in the six months to March. To capitalise on this favourable backdrop, Grainger has a development pipeline of 4,565 homes scheduled for completion over the next few years.

I don’t believe this opportunity is reflected in the cheapness of the trust’ shares. Today, the build-to-rent (BTR) specialist trades at a 32% discount to its NAV per share of 294p, as stated at the end of March.

On the dividend front, Grainger offers a robust 4.2% forward yield for the current financial year (to September).

I think it’s a top upcoming REIT to consider for passive income growth. It hiked the interim dividend 12% for the current fiscal period.

Be mindful however, that government plans to supercharge housebuilding over the next several years could impact rental growth.

Space to grow

Warehouse REIT‘s (LSE:WHR) another cheap property stock that’s grabbed my attention. Today, its shares change hands at a 10.8% discount to today’s estimated NAV per share of 128.7p.

As its name suggests, the company lets out spaces for businesses to store and distribute goods. As a consequence, it’s well-placed to capitalise on multiple growth trends including:

• The steady growth of online shopping
• Increasing demand for ‘last mile’ logistics
• Changes to global supply chains, including the rise of ‘just in time’ inventory management
• The spike in ‘nearshoring,’ where companies bring their operations closer to home

With high exposure to cyclical sectors, rents can be less predictable than those of Grainger’s. But its focus on multi-let warehouses helps reduce (if not totally eliminate) this threat. In total, it has 409 different tenants spread across 60 sites. This provides considerable strength through diversification.

Dividends at Warehouse REIT are tipped to remain stable through to the end of the next financial year (to March 2027). And on the plus side, this means yields sit at a robust 5.7% for the period.

The post 2 cheap REITs to consider for a long-term passive income appeared first on The Motley Fool UK.

Harnessing the green revolution

Britain has some of the world’s most ambitious renewable energy targets, which bodes well for companies like Greencoat UK Wind (LSE:UKW). By 2030, the government plans to meet 100% of the country’s total energy demand with clean sources.

This provides an attractive place for green energy providers to invest. Changes to onshore wind farm planning rules will make it easier for businesses to expand. And the Contracts for Difference (CfD) model — which guarantees a multi-year fixed electricity price — is run in a way that provides better revenues visibility than operators in most other countries enjoy.

As its name suggests, Greencoat UK Wind’s portfolio just covers these shores, proving maximum exposure to this environment. On the downside, this narrow footprint leaves group earnings more vulnerable to localised weather patterns. However, the country’s assets are located across all the home nations and on land and sea, which reduces this threat.

Brand heavyweight

The rising popularity of local household goods manufacturers poses a threat to the established industry giants like Unilever (LSE:ULVR). But I’m hopeful the FTSE 100 company has what it takes to weather the storm — after all, it’s been leading in its markets since the late 1920s.

Revenues certainly continue chugging higher for now, an especially impressive feat as cost-of-living crises linger in some regions. Underlying sales increased 3% in the three months to March, with volumes rising even as price increases came into effect. This illustrates the mighty brand power of brands from Dove soap and Axe deodorant to Hellmann’s mayonnaise.

Largely speaking, Unilever’s diversified model across geographies and product lines gives it excellent long-term earnings visibility. With heavy exposure to fast-growing emerging markets, too, it has considerable scope for long-term growth.

Home comforts

The UK’s huge shortage of residential rental properties is well documented. The exodus of buy-to-let investors threatens to make it worse.

Build-to-rent (BTR) specialists like Grainger (LSE:GRI) stand to be big winners from this trend. Government plans to supercharge housebuilding could limit this growth opportunity, but the massive market shortfall will take years and significant effort to solve.

In the meantime, rents in the UK remain on course to continue rising at breakneck pace. Latest Office for National Statistics (ONS) data showed private rents soared 6.7% in the 12 months to May.

Grainger is expanding to capitalise on these favourable conditions as well. Its £1.3bn BTR pipeline includes around 4,500 homes. It’s expected to boost earnings (on a European Public Real Estate Association, or EPRA, basis) by 50% between last year and 2029.

One final thing: the company’s plans to transition to a real estate investment trust (REIT) could make it an excellent passive income share. Under sector rules, REITs must pay out at least 90% of annual rental earnings in dividends.

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 post Consider these 3 FTSE 100 and FTSE 250 shares for long-term rewards! appeared first on The Motley Fool UK.

Owning buy-to-let property gives investors a regular passive income, along with a way to exploit long-term house price growth. Yet there are also significant drawbacks, including high upfront costs, adverse tax changes, ongoing repair costs, and potential tenant problems.

There’s also the problem of ever-growing sector regulation. Just this week, the government unveiled new energy efficiency targets for landlords that could, on average, add between £6,100 and £6,800 to their costs by 2030.

Two top UK shares

I think a better way to consider tapping the residential rentals market is by buying UK stocks. Grainger (LSE:GRI) and The PRS REIT (LSE:PRSR) are a couple that allow individuals to profit from soaring tenant rents in a potentially simpler and more cost-effective way.

Grainger is the UK’s largest residential landlord currently listed on the London Stock Exchange. Its portfolio is worth a whopping £3.4bn and comprises some 11,100 homes.

PRS REIT is no small player, either. It had 5,437 properties on its books as of December.

Thanks to their strong balance sheets, both firms are expanding to capitalise on the lucrative trading environment too. Grainger’s £1.4bn development pipeline comprises a gigantic 5,000 homes.

Pros and cons

Both companies face the same problems of increased regulatory loopholes and associated costs. But they also enjoy significant economies of scale that private landlords don’t, which in turn limits the impact of such expenses on profits.

Other advantages these shares offer over buy-to-let include:

• Lower upfront investment costs for investors.
• No property management responsibilities.
• Superior risk mitigation through a diversfied portfolio of thousands of properties.
• UK shares can be sold more quickly and cost effectively than bricks-and-mortar assets.

One downside is that shareholders in these companies don’t have control over which properties to hold. Another is that they have some discretion over the levels of passive income they pay out.

Yet on balance, I believe the advantages they offer to investors outweigh the cons.

And in the case of PRS REIT, it only has limited control over dividend decisions. This is thanks to real estate investment trust (REIT) rules, which specify that at least 90% of rental income must be paid out 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.

Tonnes of choice

Another reason why I like the idea of UK stocks over buy-to-let is the range of options they provide. In other words, investors don’t just have to limit themselves to residential rentals and can seek large returns elsewhere.

It’s something I myself have sought to take advantage of. Primary Healthcare Properties and Tritax Big Box — companies which invest in medical and logistics facilities, respectively — are two I currently hold in my Stocks and Shares ISA.

In total, there are more than 50 REITs listed on the London Stock Exchange. I think potential buy-to-let landlords should give them a close look before investing any cash.

The post Thinking about buy-to-let? Consider these UK stocks instead appeared first on The Motley Fool UK.

Here’s why I think it merits serious consideration today.

Strong conditions

A chronic property shortage has driven residential rents skywards in recent years. As Britain’s largest listed rental accommodation provider, Grainger has been a huge beneficiary of this upswing.

It’s rapidly grown its property portfolio to capitalise on this, and now has more than 11,000 homes on its books. That compares with around 5,600 homes five years ago.

The big question for investors today is whether this trend can continue. Falling demand more recently has caused some room for doubt: according to Rightmove, average advertised UK rents outside London dropped 0.2% in the last quarter of 2024.

With elevated rental costs squeezing the number of prospective tenants, advertised rents (excluding the capital) dropped for the first time since 2019.

This could be the beginning of a trend that threatens profits at Grainger and its peers. The government’s plans to build 1.5m new homes during the five years to 2029 might also dent profits growth.

But I’m not so sure. First and foremost, this is because Britain’s population is booming and tipped to continue doing so, driving demand for residential space significantly higher.

The Office for National Statistics (ONS), for instance, predicts the UK population will grow by around 5m between 2022 and 2032, to 72.5m.

At the same time, the number of buy-to-let investors is falling due to rising costs and regulatory hoops. Estate agent Hamptons has predicted 113,630 new buy-to-let purchases across the UK in 2024, down a whopping 40% in less than a decade.

Growth to accelerate?

Grainger isn’t without risk, especially given the threat of interest rate pressures persisting that crimp asset values.

But on balance, I think the earnings picture here is largely very bright. This is backed up by current broker forecasts: City analysts think earnings will rise 2% during the financial year to September 2025 before growth accelerates to 10% in fiscal 2026.

Now, Grainger shares don’t look cheap based on these figures. For this financial year, they trade on a price-to-earnings (P/E) ratio of 22.1 times.

However, based on another popular value metric — the price-to-book (P/B) ratio — the FTSE 250 share actually looks exceptionally cheap.

With a reading below 1, at 0.8, the landlord trades at a discount to the value of its assets.

Rising dividends

Pleasingly for Grainger investors, the prospect of solid profits growth means City analysts expect dividends to continue rising sharply over the forecasted period.

For financial 2025 and 2026, total dividends are tipped to soar 12% and 9%, respectively. To put that in context, shareholder payouts across the broader stock market are expected to grow between 4% and 4.5%.

What’s more, these predictions push Grainger’s dividend yields to 4% for 2025 and 4.4% for 2026. Both figures comfortably beat the 3.3% average for FTSE 250 shares.

For investors seeking a blend of growth, income, and value, I think Grainger shares are worth a close look.

The post A dirt-cheap FTSE 250 growth AND dividend share to consider in February! appeared first on The Motley Fool UK.