Despite its fledgling £63.2m market-cap, it’s very well-established, having been around for well over 100 years. However, with a yield generally below 6%, it’s flown under my radar — until now.

On Friday (28 November), its share price crashed about 30% after the board warned shareholders that FY results are likely to be below expectations. As a result, its yield rose above 6%, sparking my dividend-tracking alerts.

Naturally, a fall in price doesn’t instill much confidence but it can also be an opportunity to grab some cheap shares.

The question is — are they likely to recover?

A stable, diversified model

The company’s three-pronged diversified model helps reduce risk, as a downturn in one area may be offset by stability in others.

It has large distribution networks for fuel, over a million square feet of warehouse space and substantial feed-mill capacity. Subsequently, it commands a market-leading position with a competitive advantage in scale and infrastructure.

Plus, its longevity demonstrates resilience and adaptability, with all divisions remaining cash-generative and profitable.

Critically, it also has an excellent dividend track record. It’s managed to raise dividends every year for 13 years without fail — even through the pandemic.

Is the dividend sustainable?

An excellent dividend policy is one thing but if it isn’t backed by strong results, there’s the risk of capital declines or a dividend cut.

In NWF Group’s FY 2025 results released in May this year, revenue declined 5% and earnings per share (EPS) dropped from 19.2p to 18.5p. Despite this, it still raised its final dividend from 8.1p to 8.4p. Its return on capital employed (ROCE) also rose 7.4%, which is encouraging.

Unfortunately, one glaring issue I can’t ignore is a 48.5% rise in debt to £53.9m. Add to that a 37% dip in net cash, and dividend sustainability comes into question.

Naturally, the recent trading update doesn’t help matters.

My verdict

With several decades of payments and 13 years of growth, it’s hard to argue against the company’s dedication to shareholder returns. For now, the dividend remains well-covered, giving no reason to expect a cut or reduction.

However, the 37.5% price decline over the past five years equates to an annualised loss of 9.12%. That means, even with the generous dividend, investors have lost out.

From my side, I’d need to see stronger signs of share price recovery before I considered the stock.

For those looking to boost an income portfolio, I think there are more promising high-yield dividend stocks on the London Stock Exchange. Off the top of my head, some good options worth considering this month include Investec, Admiral Group and TP ICAP. 

But markets never sleep and things change at the drop of a hat, so I always monitor weekly developments to catch the best opportunities.

The post A 6.6% dividend yield and 13 years of growth! Is this small-cap FTSE share a buy to consider? appeared first on The Motley Fool UK.

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Aviva

What it does: Aviva offers a broad range of financial products including pensions, insurance and investment accounts.

By Royston Wild. I’ve owned shares in Aviva (LSE:AV.) for several years, and last topped up my holdings in September. I’m aiming to boost my stake again early in the New Year.

To me, the financial services giant is one of the FTSE 100’s best bargain shares. It trades on a price-to-earnings ratio (P/E) ratio of just 9.9 times for 2025. Its price-to-earnings growth (PEG) ratio is 0.6, too, comfortably below the value watermark of 1.

Aside from predicted earnings, Aviva shares also look cheap with respect to expected earnings, its dividend yield for next year up at 8%.

Finally, with a price-to-book (P/B) reading of 1.5 times, Aviva looks cheap relative to the value of its assets. The average for its financial services peer group sits closer to 2 times.

I think the business has considerable investment potential over the long term. I expect sales to steadily rise as demographic changes drive demand for retirement products like pensions and annuities.

Aviva shares could fall next year if economic conditions in its core UK and Ireland marketplace worsen. But I think this possibility is more than baked into the Footsie firm’s rock-bottom valuation.

Royston Wild owns shares in Aviva.

JD Sports Fashion

What it does: From 4,500 stores in 36 countries and via its website, JD Sports Fashion sells branded sports and casual wear.

By James Beard. On 21 November, JD Sports Fashion (LSE:JD.) shares tanked 15.5% after it said earnings for the year ending 1 February 2025 (FY25) would be “at the lower end of our original guidance” of £935m-£1.035bn. The consensus forecast of analysts is £988m.

Pre-announcement I thought the stock offered good value. Now, close to its post-pandemic low, I think it’s a bargain.

With expected FY25 earnings per share (EPS) of 12.6p, the stock trades on a multiple of just 7.6. In FY21, EPS was 63% lower, yet at the end of that financial year the share price was 59% higher.

But Q3’s seen a slowdown in sales in all territories, except mainland Europe. And as Nike‘s top customer, it’s suffering as a result of the American giant’s failure to innovate.

However, long term I’m confident that the full-year impact of its recent acquisition in the United States (1,169 stores) will help restore confidence.

James Beard owns shares in JD Sports Fashion.

NWF

What it does: NWF is a UK distributor of fuel, animal feeds and food with an established customer base,

By Christopher Ruane. As a shareholder in NWF (LSE: NWF), I have scratching my head at the penny stock’s dismal 2024 performance. Does the market just not see the value I do? Might it see a value trap?

Yielding over 5% and with a price-to-earnings ratio of 8, the shares look like a bargain to me. It has a proven business model selling products to an established customer base. Competition is limited.

Yes, the profit margins are thin: NWF made less than £10m last year on sales of £951m. So risks like oil price volatility are significant ones for the company.

But while the margins are thin, this is a consistently profitable company with a customer base set to keep needing what it sells. NWF’s cash generation supports a generous dividend.

Even after capital expenditure including building a warehouse, it ended its last financial year with net cash of £10m, over a seventh of its current market capitalisation.

Christopher Ruane owns shares in NWF.

The post Best British value stocks to consider buying in 2025 appeared first on The Motley Fool UK.

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Associated British Foods

What it does: Diversified food, ingredients and retail group known for famous brands like Jordan, Twinings and Primark.

By Mark David Hartley. Associated British Foods (LSE: ABF) is a food and ingredients group and the world’s second-largest producer of sugar and baker’s yeast. It’s also the owner of the retail clothing brand Primark, which has been doing well lately. As an international firm, it risks losses from exchange rate fluctuations and regulations related to food safety, labour standards, and environmental protection. It’s also in a tough industry, with competitors like Premier Foods, Tate & Lyle, and H&M vying for their share of the market.

I think it’s a good value stock because it has low debt, a clean balance sheet, and a reliable dividend with a 2.5% yield. The price grew 88% in the past two years – recovering all pandemic-era losses – yet it’s still undervalued by 17% based on future cash flow estimates. In the next three years, earnings per share (EPS) and revenue are expected to grow by 25% and 10% respectively.

Mark David Hartley does not own shares in any of the companies listed.

Central Asia Metals

What it does: Central Asia Metals operates Kazakhstan’s Kounrad copper mine and the Sasa lead-zinc asset in North Macedonia.

By Royston Wild. Copper prices have fallen sharply in the second half of 2024 as demand worries have intensified. This downtrend could continue if core economic data from the US and China continues to underwhelm.

This has obvious risks for copper producer Central Asia Metals (LSE:CAML). The business produces the red metal in Kazakhstan, alongside other base metals in North Macedonia.

Yet I still find the value this AIM stock offers hard to ignore. It trades on a forward price-to-earnings (P/E) ratio of 9 times. Meanwhile, its price-to-earnings growth (PEG) multiple is 0.3, well below the accepted value watermark of 1.

Central Asia Metals provides a bumper 9.6% dividend yield for this year, too.

As a long-term investor, I’m prepared to accept a little near-term turbulence if the outlook further out is bright. And I think Central Asia Metals’ profits could leap as the energy transition drives copper demand higher.

Analysts at McKinsey & Company forecast global copper consumption to surge 30% between 2023 and 2035. At the same time, supply is set to lag as new projects fail to start up and output from existing assets dips.

Royston Wild does not own shares in Central Asia Metals.

JD Sports Fashion

What it does: JD Sports Fashion is a global retailer of sports fashion brands. 

By Paul Summers: There’s not a lot of love for retailer JD Sports Fashion (LSE: JD.) among investors right now. The stock has seriously lagged the FTSE 100 index in 2024 so far.

Not that this comes as a complete surprise. A cost-of-living crisis was never going to be great news for consumer cyclical stocks. The fact that one of the company’s major brands – Nike – is struggling only worsens things.

However, adjusted profit of £405.6m for the six months to 3 August beat market expectations. With the all-important festive shopping season on the way, the second half of JD’s financial year might prove equally reassuring.

Sure, a rebound in inflation could bring out the sellers again. But the valuation of just 10 times FY25 earnings (as I type) looks too low to me considering JD’s multi-brand, multi-channel offering and rapid overseas growth.

Paul Summers has no position in JD Sports Fashion or Nike.

NWF Group

What it does: NWF is a distributor of fuel, food and animal feeds primarily in rural parts of Britain.

By Christopher Ruane. Shares in NWF Group (LSE: NWF) have fallen by 45% since last Summer and it now trades on a price-to-earnings ratio of 8.

But the company’s most recent trading statement affirmed that the current financial year has started in line with management expectations.

One reason for the decline is weakening business performance. Last year saw revenues fall 10% and pre-tax profit by 35%. Weak demand in the fuel market is an ongoing risk to the company’s performance.

But I think the share price fall looks overdone. NWF has a sizeable customer base and limited competition in some areas. Although profit margins are thin, it remains profitable and last year continued its recent pattern of annual dividend increases.

The yield of 5.5% is attractive in my view. I expect medium-term growth prospects could be limited, but like both the income prospects and what I see as a cheap valuation.

Christopher Ruane owns shares in NWF Group.

Zigup

What it does: Zigup operates van hire businesses in the UK and Spain. The group also provides accident repair and claims management services.

By Roland Head. When supply chain problems made it hard to buy new vans in 2022 and 2023, Zigup (LSE: ZIG) profited from soaring used van prices.

The group’s hire fleet feeds into its used van business, supporting bumper profits on sales of ex-rental vans. However, the shares have drifted lower this year as management have warned of a “normalisation” of used vehicle prices.

The risk here is that the normalisation may turn into a slump. I can’t ignore the possibility.

However, Zigup’s Northgate van hire business is a market leader and has been around a long time. I suspect they’ll manage this transition successfully.

In the meantime, the shares trade on a modest rating of seven times 2024/5 forecast earnings. Zigup also offers a useful 7% dividend yield, well covered by earnings.

I think the balance of risk and reward looks favourable. Zigup is on my radar as a possible value buy.

Roland Head does not own share in Zigup.

The post Best British value stocks to consider buying in November appeared first on The Motley Fool UK.

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Eurocell

What it does: Eurocell manufactures, distributes and recycles window, door, and roofline unplasticized polyvinyl chloride (uPVC) products. 

By Kevin Godbold. The Eurocell (LSE: ECEL) business looks set to bounce back after a period of weaker earnings during 2023.

City analysts have pencilled in chunky double-digit percentage earnings advances for this year and next. That feels intuitively right to me because I’m bullish on the economy and believe many UK-facing cyclical companies will likely experience gathering positive trading momentum.

May’s trading update was cautious in tone. There’s no denying the firm’s vulnerability to the effects of general economic shocks and events. However, the directors pointed to the “strong” balance sheet and the success of prior cost-cutting measures taken. The business is well placed to benefit from recovery in its markets, they said.

Meanwhile, with the share price in the ballpark of 146p, the forward-looking earnings multiple for 2025 is just below eight, and the anticipated dividend yield is above 6%. To me, that looks like decent value, despite the ongoing risks.

Kevin Godbold does not own shares in Eurocell.

Lords Group Trading

What it does: Lords Group is a distributor of building, heating and plumbing goods throughout the UK.

By Jon Smith. Lords Group (LSE:LORD) shares have fallen by 29% over the past year. With the British stock close to 52-week lows, I think it’s a value play.

I get why the specialist distributor of building and DIY goods has struggled recently. The slump in the property market due to high mortgage rates has meant demand has slowed. Further, the cost-of-living crisis has caused some to put off renovation work.

Looking forward, I see an economic recovery alongside falling interest rates. This should act as a catalyst to push the share price higher over the coming year. Lords Group is well positioned to take advantage of this, especially due to the recent acquisitions which should provide economies of scale moving forward.

Sure, a risk is that it takes longer than anticipated for the housing market to recover. Yet as a long-term investor, I can afford to be patient.

Jon Smith does not own shares in Lords Group.

NWF

What it does: NWF is a UK-based distributor of fuels, food and feeds, primarily to an agriculturally focused customer base

By Christopher Ruane. Trading on a price-to-earnings (P/E) ratio of under seven, NWF (LSE: NWF) looks like good value to me.

Excluding lease liabilities, the company had a net cash position of £13m at its half-year point – around 15% of its current market capitalisation. So this is not a company with a low P/E ratio but an ugly balance sheet.

That said, pre-tax profit at the first half fell 35% year-on-year. Volumes in the feeds business fell, while higher volumes in fuel could not stop headline operating profits plummeting as margins weakened substantially. These factors are likely to affect full-year results too.

Still, with a proven business model, entrenched customer base and deep agricultural expertise, I think the company could do well over the long run.

The dividend yield of 4.5% looks tasty to me. I reckon a 35% fall in the share price over the past year means the company is now undervalued relative to its long-term cash generation potential.

Christopher Ruane owns shares in NWF.

Prudential

What it does: Prudential provides life and health insurance products across Asia and Africa.   

By Ben McPoland. There still appears to be a lot of value on offer in the FTSE 100. Yet Prudential (LSE: PRU) shares seem particularly cheap to me, trading at just 9.1 times this year’s forecast earnings per share. 

Others seem to agree, with multiple Prudential executives and directors scooping up shares throughout the summer. And as Wall Street legend Peter Lynch once said: “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

Of course, that doesn’t mean it will. The share price is down 38% in one year and 53% over five. A lot of the bearishness seems to relate to China, one of the firm’s key growth markets. Consumers there are tightening belts and that could mean less insurance policies. That’s a risk.

Nevertheless, the company also sees great value in its own shares. In June, it announced a huge $2bn share buyback programme to run over the next two years.

Meanwhile, brokers forecast an attractive rise in earnings over this period. I think the stock looks great value under 700p.

Ben McPoland has no position in Prudential. 

TP ICAP

What it does: TP ICAP provides broking, data and analytics services to clients in the financial services, energy and commodity sectors.

By Roland Head. Broker TP ICAP (LSE: TCAP) trades on a forecast price-to-earnings ratio of seven, with a 7% dividend yield. I think this could be too cheap.

The bear case is that TP ICAP’s broking unit – where brokers arrange complex trades for clients over the phone – is obsolete.

True, it’s not as big as it used to be. But broking generated £206m of operating profit for TP ICAP last year. I think it’s still relevant.

In any case, I’m interested in TP ICAP mainly for its highly rated data analytics business, Parameta Solutions.

Earlier this year, City estimates suggested the Parameta business could be worth £1.2bn. TP ICAP’s entire market cap is only £1.7bn.

Given that Parameta only contributed a quarter of TP ICAP’s operating profit last year, the group’s valuation seems askew to me.

The company is “continuing to explore options” to unlock the value this value for shareholders. I’m happy to keep holding.

Roland Head owns shares in TP ICAP.

The post Best British value stocks to consider buying in August appeared first on The Motley Fool UK.

Topps Tiles

I already own Topps Tiles (LSE: TPT) but would be happy to ‘Topp’ up my holding!

The company is responsible for one in every five tiles sold across the UK. It also sells other floor coverings. With an extensive network of stores open both to trade and retail customers, a sizeable digital operation and deep market understanding, I think the company is here for the long haul.

There are challenges though. Revenues in the first half slid 6% compared to the same period last year, and before tax the company swung from a £1.7m profit to a £1.5m loss. A weak housing market could see sales fall further if building rates drop.

But as a long-term investor, I think the share is well-positioned. I like its 8.9% dividend yield.

After falling 16% in the past year and 37% over five years, how should I see the share? Is it an overlooked bargain or as a weakly performing business with a share price in long-term decline?

There could be validity in either view. I own the shares and plan to keep holding them because, although the current trading environment is difficult and could see profits fall, I see Topps as well run and smartly positioned to keep a key role in a market I expect to benefit from long-term customer demand.

NWF Group

The business of distributing fuel, food and animal feeds may not be glamorous. But it has other things going for it. As the old saying goes, where there’s muck, there’s brass.

Demand is high and likely to be resilient over the long term. Customer relationships and depot location convenience can give a company pricing power in what initially looks like a commoditised market.

Take NWF Group (LSE: NWF) as an example. The business has been profitable in recent years and last year revenues topped a billion pounds. Yet the market capitalisation of the stock is under £90m.

One reason for that is that this is a high revenue, low profit margin industry. Those 10-figure revenues last year generated £15m in profits after tax, equating to a paper thin net profit margin of 1.4%.

Rising fuel or other costs could eat into such thin margins. Lower demand for domestic heating oils helped push first half profits before tax down 36% year on year.

Despite that, the business has maintained its underlying full-year expectations. The share trades on a price-to-earnings ratio of 6 and offers a dividend yield of 4.4%.

If I had spare cash to invest, I would be happy to tuck a few NWF shares into my portfolio. It is a third cheaper than it was a year ago and I remain upbeat about the business prospects here.

The post 2 dividend-paying penny shares I’d happily own appeared first on The Motley Fool UK.

Today I want to look at three AIM-listed companies that I think have great potential as long-term investments.

NWF shares: a 25-year track record

Small-cap NWF (LSE: NWF) is a distribution business that supplies fuel oils, animal feed, and stores, and delivers food for supermarkets. NWF flies below the radar for many investors, but has delivered reliable profits and growth for more than 20 years.

The company first floated on the AIM market in 1995 and has expanded steadily. Since 2017, annual profits have risen from £5.5m to £8.4m.

NWF has also increased its dividend every year for the last 25 years. That’s a fairly rare achievement, even among top FTSE 100 firms.

I can see a few concerns. Demand for heating oil and road fuels could one day start to fall as fuel users adopt electric power. Another risk is that many of the group’s operations run on fairly low margins — strong management is essential.

However, I think these risks are reflected in the share price. The business currently trades on a price-to-earnings (P/E) ratio of 12, with a well-covered 3.4% dividend yield. I view the shares as a long-term buy at this level.

A quality, family-owned business

My next pick is timber merchant James Latham (LSE: LTHM). This business has a market cap of £255m and is one of the largest distributors of timber and panels in the UK. The business was founded by the Latham family 260 years ago, and remains under family management today.

Business boomed during the pandemic construction boom, but profits are expected to drop back somewhat this year, mainly due to inflation.

So far, the company says that demand has remained stable, except for builders merchants, where demand has slowed. There’s obviously a risk the UK could suffer a worse recession than expected, but Latham’s long history and £36m cash balance give me confidence the company will ride out any storm.

The shares are currently rated on a forecast P/E of nine, with a 2.6% yield. Given the group’s long record of growth, I think this could be a buying opportunity.

A specialist investor

B.P. Marsh & Partners (LSE: BPM) is not a household name, but it’s a well-known expert in its field. The company, which was founded by chairman and 40% shareholder Brian Marsh, invests in small insurance businesses.

It’s a specialist operation, for sure, and there’s not much I can do to evaluate the company’s investment decisions. However, I think B.P. Marsh’s track record speaks for itself.

Over the last 10 years, the group’s net asset value per share has risen from 189p to 445p. That’s equivalent to an average annual growth rate of 9%. I think that’s a solid achievement for a period that included the pandemic.

This business is led by an expert team, with a long record of success in a specialist niche. At a share price of 325p, the shares are trading at a big discount to their book value. I think this AIM share could deliver solid long-term returns.

The post 3 top AIM shares to buy for retirement appeared first on The Motley Fool UK.

My focus is on businesses with sound finances and the potential to grow their operations. And when I’ve found one that interests me, I’ll look for a valuation that makes sense for a long-term investment in the shares. In that approach, I’m aiming to copy successful investors such as Warren Buffett and others.

Small but steady

Right now, NWF (LSE: NWF) has caught my attention. The company has a small market capitalisation of just £111m, or so. But I’m impressed by the firm’s long record of steady trading. It has consistent and growing annual cash inflow. And it has achieved smooth shareholder dividend payments over many years. The compound annual growth rate of the dividend is running at just under 5%.

With the share price near 225p, the forward-looking dividend yield for the trading year to May 2023 is around 3.4%. However, it’s possible for the directors to trim, or cancel, dividends at any time if the business runs into difficulty. But that’s true of all companies.

NWF distributes fuels, food and animal feeds. And the common theme is delivering stuff with lorries. The company sells and distributes domestic heating, industrial and road fuels. It warehouses and distributes clients’ ambient groceries (which can be stored at room temperatures) to supermarkets and other retail distribution centres. And it develops, makes and sells animal feeds and other agricultural products.

Essential everyday services

I like NWF’s business. The company provides essential everyday services that are unlikely to go out of favour. But it does have competitors, as do most businesses. Nevertheless, May’s trading statement was robust with the financial performance ahead of the directors’ previous expectations.

Volatile fuel markets and other commodity inflation have been causing some challenges for the business. But as a distributor, NWF is in a position to adjust selling prices to maintain margins.

However, profit margins are thin in the sector and NWF has quite a large debt load with net gearing running just below 70%. The business could get into trouble in any future economic downturn. However, I see its business sectors as resilient and leaning to the essential end of the market. For example, NWF performed well through the pandemic.

Perhaps I’ll face a bit of a bumpy ride holding the stock for the long term. Indeed, any number of operational challenges could make life difficult for the business. But I’m encouraged by the company’s steady focus on expansion. And I like its ambition to consolidate the markets in which it operates via a programme of acquisitions.

I’m watching closely and will likely consider the stock for my ISA when I next have spare cash.

The post This could be a great pick for my Stocks and Shares ISA appeared first on The Motley Fool UK.

Jersey Electric

As its name suggests, market minnow Jersey Electric (LSE: JEL) supplies electricity to approximately 50,000 domestic and commercial customers on the island. Importantly, it’s the only company to do so, making it arguably as defensive as small-cap stocks come. 

As a result of this, Jersey has shown itself to be an extremely consistent dividend raiser (+5% every year).  A total payout of 17.3p per share is expected in FY21. That’s a 2.9% yield; not massive but easily covered by profit.

As one might expect from a solid income payer, however, JEL’s share price performance has been adequate rather than explosive. The stock is up 44% in value since 2016. That’s clearly a whole lot less than other UK shares. So, a danger with JEL is that I wouldn’t get much in the way of capital growth. A valuation of 16 times earnings for a predictable utility stock isn’t exactly cheap either. 

Still, that predictability might suit me down to the ground if income were a priority. If/when markets correct, I can be pretty confident that JEL will recover quickly. That’s exactly what happened last year. 

NWF 

Small-cap NWF Group (LSE: NWF) describes itself as a “specialist distributor of fuel, food and feed across the UK“. Like Jersey Electric, it’s also a brilliantly regular dividend hiker. This potentially makes it another one of the best shares to buy at this end of the market spectrum.

The company is down to return 7.34p per share to holders in FY22, at least according to analysts. That’s a yield of 3.43% at last Friday’s closing price. Some might say that’s not enough given that shares in minnows can be pretty volatile due to their illiquid nature. Margins are also wafer-thin.

In NWF’s defence, its annual payouts are usually very well covered by profits, making them pretty secure. That’s more than you can say for some far larger stocks these days. On top of this, NWT’s shares aren’t expensive relative to the wider market. I could pick some up today for 12 times forecast earnings. 

Wynnstay

Agricultural product manufacturer Wynnstay (LSE: WYN) has shown itself to be admirably predictable when it comes to returning cash to its owners. We’re talking about an average hike of +5%, with the total sum always covered by profits.

A potential 15.2p per share in FY21 would give a yield of 2.7%. That’s the lowest of those mentioned here. However, it’s important to consider the impact of many years of compounding that regular dividends enable.

There are drawbacks, of course. Margins, like those at NWF, are seriously low. And, although performing superbly over the last year (+64%), WYN’s shares are now only back to the level they were in 2016. Like most things in life (and investing), I think balance is key. I would never fill an income-focused portfolio solely with small-cap stocks.

So, while Wynnstay might make a nice addition, I’d aim to reduce volatility by also holding some larger dividend hikers as well. 

The post Small-cap income: 3 of the best shares to buy for rising dividends appeared first on The Motley Fool UK.

Why I think Alumasc is a share to buy now

At the beginning of February, building products supplier Alumasc (LSE: ALU) delivered a strong set of half-year results. Revenues and earnings were higher than last year. Net debt and the pension deficit were lower. And the directors declared an interim dividend underlining their confidence in the outlook for trading.

City analysts expect a triple-digit percentage bounce-back in earnings for the full trading year to June 2021, and high single-digit progress the following year. Meanwhile, the forward-looking valuation looks modest. And with the share price near 174p, the dividend yield looks set to be around 5.5%.

However, Alumasc’s fortunes are tied to the building and construction industry. And there’s a lot of cyclicality in the firm’s operations. The share price has already risen a lot since the Covid-crash last year. And the shares now change hands near the top of a price range established for around 20 years. Nevertheless, I’m tempted to put some of the shares in my ISA and hold them for the long term.

A steady business

NWF (LSE: NWF) operates as a specialist distributor of fuel, food, and animal feeds. I’ve admired the business for some time because of its steady nature and consistent financial and trading record. Revenue, earnings, and shareholder dividends have been on a gradual climb upwards for years.

In February, the company released its half-year results report covering the period to 30 November 2020. And the figures show a bit of a dent in revenues and earnings because of the pandemic. However, the directors didn’t miss the interim dividend but held it flat compared to the previous year.

The outlook remains positive. And the directors expect the business to be resilient through whatever other challenges the pandemic may yet throw at it. The company expects to resume its growth strategy based on organic and acquisitive progress.

The valuation looks full

However, there’s no coronavirus bargain for me to pick up here. With the share price near 221p, the stock has already exceeded its pre-Covid level. In fact, the share recovered fast and was already at its pre-crash level by 1 May. I reckon the market was quick to recognise the strengths of the business.

Looking ahead, City analysts expect the full year to May 2021 to deliver a single-digit percentage dip in earnings followed by a single-digit recovery the following year. And against those forward predictions, the earnings multiple is just above 12. The anticipated dividend yield is around 3.3%. Of course, forecasts can change.

Given the slow rate of growth on offer, we could argue that the valuation looks full. And another risk is that the stock is almost at its previous high just before it crashed during the financial crisis. That big down-move started in late 2007.

Nevertheless, I’m focused on the underlying business and its fundamentals. And I’d like to get the shares in my ISA to hold for the long term.

The post 2 shares to buy as the new ISA allowance comes in on 6 April appeared first on The Motley Fool UK.

There’s more than one way to skin a cat, it’s true. When it comes to share investing there’s many strategies that you and I can use to make a lot of money. One method that’s staring us all in the face today is the opportunity to buy top UK shares that were oversold during the initial stock market crash and which have suffered from anaemic buying interest since.

The success of Stocks and Shares ISA investors during the last decade illustrates just what a powerful ally stock market crashes can be for brave investors. Hundreds and hundreds of ISA owners made millions during the 2010s. How? They bought cheap UK shares in the aftermath of the banking crisis. And then watched them balloon in value as the economic recovery took hold and confidence returned to the markets.

Low P/E ratios AND big dividends

Here are two UK shares I’m thinking of buying for my own ISA. They carry low price-to-earnings (P/E) multiples which provide plenty of scope for serious price gains from now on. And they boast bulky dividend yields too. As a result I think they’re too good to miss:

• NWF Group has a very bright future. It is a major fuels supplier in a hugely-fragmented market. And through its aggressive acquisition strategy it’s taking steps to boost its geographical footprint and supercharge its share. It also has ample room to expand in the fast-growing animal feeds markets. The company’s forward earnings multiple of around 10 times fails to reflect its bright profits picture, in my book. At current prices, it boasts a 4% dividend yield as well. These figures suggest it’s a steal.
• Broadcasting colossus STV Group looks too cheap to miss today too. This UK share boasts a forward P/E ratio of 8 times as well as a near-4% dividend yield. Now could be an especially good time to buy as hopes of a strong rebound in ad budgets grow (former WPP head honcho Martin Sorrell, for one, recently told Barron’s that he expects a “full-throated” recovery in 2021). The accelerating growth of its digital business offers plenty for share investors to get excited about too.

Make a million with UK shares

These are just a couple of the too-cheap-t0-miss stocks available to buy today. The Motley Fool’s epic library of exclusive reports can help you find even more. So do some research and get investing in UK shares today, I say. You could get seriously rich and, like those ISA investors, possibly even make a million.

The post P/E ratios of 10 and 4% dividend yields! 2 UK shares I think could help you make a million appeared first on The Motley Fool UK.