Some might look at this as a once-in-a-decade buying opportunity. Some might want to steer clear. Personally, I think there’s a bigger concern that few are talking about. Let me explain. 

The housing sector is in something of a crisis. The shares of housebuilders crashed after Covid. Barratt shares fell by over 60%. Redrow by over 50%. The sector is struggling and housing stocks are trading for discounts not seen in over 10 years.

The general reasons for this are macroeconomic factors. Inflation has pushed building costs up. Interest rates have made mortgages expensive. House prices have fallen too.

This squeeze on margins has led to housebuilders, well, building fewer houses. Barratt completed 28% fewer in the first half. Redrow didn’t mention completions but revenue was down 24%, so I’d assume a drop there too.

The situation

So here’s the situation. Our country is crying out for more homes to be built and a handful of large housebuilders are choosing to build less. 

Now throw this deal into the mix. This takeover would consolidate the second-biggest housebuilder and the seventh-biggest. The new company would boast a market value of around £7bn and be the biggest company of its kind in the UK. 

Would this be good for home buyers? Probably not. And this is where the Competition and Markets Authority (CMA) enters the scene. The CMA will be scrutinising this acquisition and choosing whether to approve it or not. 

Barratt management hopes to get this deal over the line within 18 months. That’s a fair chunk of time for the housing crisis to worsen and even for politicians to wade in. Keir Starmer has already spoken of “getting Britain building again”. 

In short, this takeover has plenty of hurdles to clear.

I think the markets agree. Barratt plans to buy Redrow shares at a 27% premium but the shares are only up 13% since the announcement. Investors clearly don’t think it’s a done deal. 

A buy?

Let’s say the deal goes through. Would either Barratt shares or Redrow shares be a good buy now?

Well, the benefits are claimed to be £93m recurring efficiency improvements. However, Barratt is paying a £675m premium to acquire Redrow. So, all else being equal, we’re looking at seven years to see any benefit. 

On the plus side, Redrow boasts one of the best reputations for premium houses. I see the brand complementing Barratt’s existing products well. 

However, there’s far too much uncertainty here on the whole. I’ll sit this one out.

The post Barratt buys Redrow: is this a once-in-a-decade chance to buy cheap shares? appeared first on The Motley Fool UK.

The big news on 7 February might have made up my mind for me. Barratt has just agreed a deal to take over rival Redrow (LSE: RDW). It’s worth around £2.5bn, and will be paid in new Barratt shares.

When housebuilder shares look cheap, it can be a great time for a takeover to consolidate the business a bit. I wasn’t expecting a deal this big. But it does firm up my belief that there are some cheap stocks in the sector.

Biggest builder

Barratt is the FTSE 100‘s second biggest housebuilder. But when the new deal goes through, it’ll take stop spot from Taylor Wimpey.

It comes on the day the two firms released their first-half figures. Barratt saw total completions fall 28.5% in the first six months, with revenue down 33.5%. For its part, Redrow recorded a 27% drop in revenue, after completions dipped by 24%.

Both firms did though, talk about a better start to the second half.

Better outlook

Barratt CEO David Thomas said that underlying demand for homes is strong. He added: “Since the start of January, we have seen early signs of improvement in both reservation rates and buyer sentiment, helped by expectations of lower interest rates and the introduction of more competitive mortgage rates.“

What do I think of all this? A quote by Warren Buffett comes to mind. He once said that “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.”

Right now, it looks to me like that gold takes the form of cheap shares. And for me it’s mainly banks and housebuilders that look super cheap.

Should we buy?

Barratt’s sure got the washtubs out. But should we do the same?

Well, it’ll take a while for the market to settle and for us to get a handle on the value of the new combined stock. At the time of writing on the day of the news, Barratt shares are down 8%, but Redrow’s are up 13%.

Forecasts showed good dividend yields. But again, we’ll need to see how the dust settles and what the City thinks.

It takes courage to make such a big move when a sector’s under pressure like this. And it can also take courage for private investors to buy shares in these companies too.

Beat the risk

We might see hopes of interest rate falls. But the Bank of England still seems very wary, and fears a late rise in inflation this year. So I expect a fair bit of volatility in the sector for a while yet.

But I think investors with a long-term view could do well to follow the lead of Barratt, and consider snapping up housebuilder stocks while they’re cheap.

The post Barratt Developments shares could be my next FTSE 100 buy after this big news appeared first on The Motley Fool UK.

The purchase deal involves Barratt paying £2.5bn in stock. But, as I write this, Redrow’s market-cap is £2.25bn – still 10% short of this level.

Risks

This makes it natural to think there’s still a potential short-term gain of 10% for Redrow shareholders if the deal goes through. But there are a few reasons why Foolish investors prefer long-term thinking to avoid opportunities like this.

One is there’s a small chance things might fall through. If so, the Redrow share price would likely fall and anyone who bought the stock just for the takeover would have no reason to keep owning it.

There’s a much bigger issue though. The deal is being financed using stock rather than cash – for each of their current shares, Redrow shareholders stand to receive 1.44 Barratt shares.

With Barratt’s share price now at £4.90, 1.44 shares has a market value of £7.06. And with the Redrow share price having reached £6.82, the difference isn’t 10% – it’s around 3%.

Investors should therefore be careful before trying to take advantage of a potential opportunity here. I just don’t think the numbers make sense given the recent stock movements.

Rewards

Buying Redrow shares might be a good idea for another reason though. According to Barratt’s estimates, the numbers on the transaction look quite attractive. 

Within three years, the company believes it can achieve £90m a year of cost savings. And around £81m of those savings should be achieved within the first year.

The forecast costs of the deal are in the region of £73m. So if Barratt has its numbers correct, the move should increase pre-tax earnings in less than a year with big gains to come further on.

The combined company also looks like it should be in a good position when things look up for UK housing. Over £7bn in revenues and more than 92,000 plots in its pipeline make it a big operator.

With construction in a cyclical downturn, I think it’s a good time to be getting ready for when things look up. And the numbers Barratt suggests make it look like there’s a margin of safety here. 

Long-term investing

I’m not interested in buying Redrow shares for the potential quick opportunity at the moment. But I do think the combined entity looks interesting from a long-term investment perspective.

The construction industry is clearly weak at the moment – as demonstrated by Barratt’s recent dividend cut. But times like these can present some of the best opportunities.

To me, the move to acquire Redrow looks like a good one. And it’s got me thinking seriously about buying shares in the combined company for potential long-term returns. 

The post As takeover news sends the Redrow share price soaring, is there still a buying opportunity? appeared first on The Motley Fool UK.

Leading house builder

Redrow is one of the largest house builders in the UK and has over 50 years experience under its belt.

It must be noted that the housing and house building market has been volatile since macroeconomic issues began early last year. Soaring costs and higher interest rates have dampened both markets. Firms like Redrow have completed fewer properties and also sold less too.

As I write, Redrow shares are trading for 598p. At this time last year, the shares were trading for 483p, which is a 23% increase over a 12-month period.

Current outlook and future prospects

Let’s start with Redrow’s most recent performance update. This came in the form of a full-year report posted in September for the year ended 2 July 2023. It made for decent reading despite the economic turbulence, in my opinion.

Revenue was pretty much at the same level as the year prior. Completions dropped by 5% but this was to be expected. The business still reported a decent profit, and paid a dividend. Crucially for me, it reported healthy cash generation. This is great to help during volatile times and maintain returns.

Speaking of returns, a dividend yield of 5% is attractive, especially as it looks well covered. However, it’s worth remembering that dividends are never guaranteed. Redrow shares also look excellent value for money on a price-to-earnings ratio of seven.

Looking forward, Redrow – and other house builders – could be set to see some normality in the coming months and years. This is if interest and mortgage rates come down. The Bank of England did not increase the base rate in its last update, and some mortgage lenders are already cutting rates. With inflation also coming down, there could be an opportunity for completions, sales, performance, and payouts to rise in the medium to long-term.

Risks to bear in mind and my verdict

The biggest issue for me right now is the current macroeconomic malaise we find ourselves in. Despite positive signs, there are no concrete assurances of rates coming down, and inflation could yet creep back up. This could continue to hurt Redrow and its performance, which underpins returns.

The current cost-of-living crisis could also continue to hurt Redrow. Consumers are struggling with higher food and energy prices. Even if Redrow can complete more homes at a cheaper price, fewer buyers could hurt its performance and return levels.

Overall, I reckon the fact that demand for housing is outstripping supply by some distance is good news for Redrow. This could help performance and payouts in the longer term, although I’m aware there are some stormy waters to navigate first. From a passive income perspective, if I had some investable cash, I’d be willing to buy Redrow shares.

The post Looking for income stocks? This 5% yielding option could soar in 2024 and beyond! appeared first on The Motley Fool UK.

At 491.8p per share, the company still offers solid value for money. They trade on a forward price-to-earnings (P/E) ratio of 11.8 times. What’s more, they offer a decent 2.9% dividend yield.

But given ongoing uncertainty surrounding future newbuild demand, should value investors like me consider buying Redrow shares?

Not bad at all!

To its credit, Redrow’s trading peformance has remained largely solid given the broader carnage caused by 14 straight Bank of England (BoE) interest rate hikes.

With affordability issues hampering broader buyer demand, completions at the company dropped 5% during the 12 months to June. Revenues meanwhile, slipped fractionally to £2.13bn from £2.14bn a year earlier. This is a far better performance than many other housebuilders have recently recorded.

Full-year turnover was supported by solid pricing across its portfolio. Average prices of its private properties and affordable homes increased 8% and 5% respectively, thanks to house price inflation and a favourable product mix.

Underlying pre-tax profit dropped 4% in fiscal 2023 to £395m, as high build inflation also squeezed the bottom line. The company cut the full-year dividend to 20p per share from 22p previously.

Choppy waters ahead

The trouble for investors is that things look set to get a lot more turbulent at Redrow. A total order book of £850m as of June — down 41% from a year earlier — underlines the strain housebuilders face to keep growing profits in the current landscape.

The business also warned it expects revenues for the current 12-month period to drop to between £1.65bn and £1.7bn. Pre-tax profits are expected in a £180m-£200m range, while the full-year dividend is tipped to drop again, to 14p per share.

However, these figures are based on the full-year sales rate matching the previous year’s 0.46 per outlet per week. This could be a tough ask, in my opinion.

Should I buy Redrow shares?

Firstly, the BoE is tipped to continue raising rates in the near term. At least another 0.25% increase is expected by the market to take the borrowing benchmark to 5.5%.

A steady stream of rate hikes is really starting to hammer homes demand in the UK. Both Halifax and Nationwide say that average property prices in August slumped at their sharpest rate since 2009. If inflation remains stubbornly high — a very possible scenario, in my opinion — then further policy tightening can be expected.

Rising unemployment is another concern after news on Tuesday that the jobless rate rose to 4.3% in July. It prompted Martin Beck, chief economic advisor at EY Club, has said that the jobs market is “clearly on the turn”. Data on Wednesday also showed the British economy contract by a larger-than-expected 0.5% year on year in July.

But the long-term outlook for builders like Redrow remains encouraging. As Britain’s population grows, demand for newbuild properties should steadily rise over time. Still, the threat of a housing market meltdown in the nearer term means I’d rather buy other UK shares today.

The post Redrow’s share price rises 4% following full-year update. Time to buy in? appeared first on The Motley Fool UK.

Here are three I’m adding to my list of shares to watch for next time I buy.

Dividends

There’s a couple of FTSE 250 housebuilders that I rate as very cheap now. Bellway and Redrow (LSE: RDW) both look good, but I think I like Redrow better.

Both share prices have fallen, and both have been volatile. But Redrow just edges it on valuation.

Forecasts put the shares on a price-to-earnings (P/E) ratio of only around 5.5. There are hard times ahead, though, and we could see that rise to 10 if earnings fall as expected.

The City thinks the dividend will drop too, to yield about 4%.

That still looks good value to me. And if it’s near the bottom of a cyclical dip, it could mean a cheap stock to buy for the next decade.

There’s clearly risk if the property slump goes on too long. But interest rates have to come down sometime.

Investment trust

I like investment trusts a lot, and I have my eye on Alliance Trust (LSE: ATST) right now.

The share price has dipped a bit along with the latest stock market falls. But it’s held up pretty well over five years, so it looks quite defensive to me. It is, after all, one of the Association of Investment Companies’ Dividend Heroes.

The trust goes for global investments, targeting income and capital growth. The dividend yield isn’t huge, at 2.5%. But it’s risen every year for the past 56 years.

With a global outlook, Alliance Trust is exposed to worldwide economic risk. But its shares currently trade on a discount of 7%. So effectively, we can grab some of its assets for 7% less than their market value.

It’s not the biggest discount out there. But I’d still be happy to buy pound coins for 93p.

Fund management

I think Jupiter Fund Management (LSE: JUP) looks good. It mostly provides mutual funds, and the weak stock market has taken its toll.

Jupiter shares have lost more than 70% over the past five years, in line with falling earnings. But right now, I think the P/E valuation has dropped more than it deserves.

Forecasts put the P/E at around 12 for the next couple of years. And dividends look set to yield around 4.5%.

Again, similar to housebuilders, that’s during a cyclical dip for the firm’s sector. Do I think the investment business will pick up? I do, for sure.

And if Jupiter gets back to earnings growth, I think today’s valuation could look very cheap.

The danger is that the down part of the cycle could last a few more years. And even if the shares are cheap now, they might get even cheaper.

But I don’t try to time the market. Jupiter looks good value now, so it’s on my candidates list.

The post 3 cheap FTSE 250 shares to buy right now? appeared first on The Motley Fool UK.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

3i Group

What it does: 3i Group is an investment business that operates in the private equity and infrastructure fields.

By Edward Sheldon, CFA. I’m convinced that 3i Group (LSE: III) shares are undervalued right now.  

For starters, the company’s price-to-earnings (P/E) ratio is very low. Currently, it’s just four. That’s well below the UK market average.

Secondly, 3i’s Chairman David Hutchison recently purchased around £230,000 worth of company shares. Generally speaking, corporate insiders buy company stock when they believe it’s undervalued. It’s worth noting that Mr. Hutchison is very experienced in the investment world. Previously, he was Head of UK Investment Banking at Dresdner Kleinwort. So, he is likely to have a good idea of 3i’s intrinsic value.

Now, 3i’s revenues and profits can fluctuate quite a bit. If they were to deteriorate, the stock may not look so cheap.

I’m encouraged by the recent director dealing activity, though. I think the risk/reward skew here is attractive.

Edward Sheldon has no position in 3i Group.

Centamin

What it does: Centamin explores, mines, and develops precious metals via its operations in Egypt and Côte d’Ivoire.

By Charlie Carman. Centamin (LSE:CEY) shares offer gold exposure, which can prove invaluable in times of crisis. The Sukari gold mine in the Nubian Desert is the jewel in the company’s crown when it comes to productive assets.

One advantage to investing Centamin over an ETF that tracks the precious metal is the passive income the stock produces. Currently, the firm boasts a 6.5% dividend yield.

The miner has lifted gold production guidance by around 5% for 2023. In addition, it expects its costs will fall below the industry average. This bodes well for future share price growth.

One risk facing Centamin is its reliance on its Egyptian operations. After a rock fall hit production at Sukari in 2020, the share price plummeted and is yet to recover.

However, a pre-development study at Centamin’s Doropo mine in Côte d’Ivoire shows efforts to diversify the company’s revenue streams are underway. I’d buy these value shares this month.

Charlie Carman has no positions in Centamin.

Forterra

What it does: Forterra makes bricks. Most notably, it makes the London Brick Company bricks that are used in UK houses. 

By Stephen Wright. Shares in Forterra (LSE:FORT) trade at a price-to-earnings (P/E) ratio of around 8. I think the shares are great value at that price.

Sometimes, when a stock is trading at a low P/E ratio, it can be a sign that the market is expecting a decline in earnings. I think that’s probably true of Forterra.

Higher interest rates making mortgages more expensive is likely to reduce demand for new houses. That will be a headwind for Forterra.

But at today’s prices, I think that the stock has enough of a margin of safety built into it. The stock pays a dividend, which yields just over 5% at today’s prices.

Even if that gets cut in half due to lower earnings, a 2.5% dividend is still not a bad return in the short term. And when housing demand normalises, I think that buying Forterra shares today will prove to be a good investment.

Stephen Wright does not own shares in Forterra.

Redrow

What it does: FTSE 250 housebuilder Redrow specialises in building high-quality homes, targeting more affluent buyers.

By Roland Head. Redrow (LSE: RDW) is known for its popular Heritage range of house designs. However, the company is pushing ahead with introducing modern, low-emission technology to its new homes. Air source heat pumps and underfloor heating are now becoming standard in Redrow’s detached houses.

This FTSE 250 stock has sold off as the market has priced in a slowdown. Although I can see some short-term risk, I think this business is already priced for a cautious outlook. The shares are trading around 10% below their 580p book value and offer a forecast yield of 5.6%.

Another attraction is that founder Steve Morgan remains the company’s largest shareholder, with a 17% stake. I’d guess his influence will help ensure that management avoid costly mistakes.

Although the outlook for 2024 is uncertain, Redrow’s financial position looks healthy to me. I believe this stock offers good value at current levels, on a medium-term view.

Roland Head does not own shares in Redrow.

Ten Entertainment Group 

What it does: Ten Entertainment Group operates 1,143 ten-pin bowling lanes in the UK across around 50 sites. 

By Royston Wild. Ten-pin bowling has enjoyed a renaissance in the UK over the past decade. This upsurge was disrupted by Covid-19 lockdowns, but player participation has been impressive since alleys reopened. 

Strong trading from leisure share Ten Entertainment Group (LSE:TEG) illustrates the strength of the rebound. Like-for-like sales were up 40% year on year in 2022, a result that led the company to predict consensus-beating profits growth. 

I’m expecting the firm’s full-year report on Wednesday 22 March to reveal that trading has remained robust at the start of 2023. Bowling isn’t an expensive way to keep the family entertained and I reckon sales will remain strong this year despite the cost-of-living crisis. 

Ten Entertainment’s shares are quite cheap on paper. They trade on a forward P/E ratio of just 8.5 times. Such a low valuation gives extra space for fresh share price gains if full-year numbers impress. 

One final thing: at current prices, Ten Entertainment also carries a meaty 4.9% prospective dividend yield. 

Royston Wild does not own shares in Ten Entertainment Group. 

The post Best British value shares to buy for March appeared first on The Motley Fool UK.

Marks and Spencer Group

Clothing and food retailer Marks and Spencer (LSE:MKS) hasn’t paid a dividend for the last couple of years. But City analysts are expecting it to restart its payout policy from the current financial year and to raise shareholder rewards rapidly thereafter.

A total dividend of 4.5p per share is forecast for the financial year to March. This results in a decent starting yield of 2.8%.

Trading at the company has been more impressive of late — like-for-like sales rose 7.2% in the December quarter — and its drive to become a multichannel operator could help it sustain this momentum and deliver long-term growth.

In January, it announced a £480m plan to overhaul its store network to embrace the opportunities of e-commerce. This would include the creation of 20 new larger stores that might help the company exploit the ‘Click and Collect’ boom.

But I don’t yet believe M&S is a good choice for income investors. As the economy splutters and high inflation persists, the outlook for profits and dividends remains highly uncertain.

Latest data on food inflation from the British Retail Consortium makes for worrying reading. This showed annual price rises sped up to 14.5% in February, from 13.8% the previous month. The rising cost of essentials leaves little left over for shoppers to spend on clothing and homewares.

I’m also concerned about M&S’s ability to generate solid investor returns as competition in the clothing sector heats up. This has the potential to put revenues and margins firmly on the back foot again.

On balance, I think investors should swerve buying the retailer’s shares. Not even a low forward price-to-earnings (P/E) ratio of 10.7 times is enough to change my mind.

Redrow

Housebuilder Redrow (LSE:RDW) looks like a far more attractive dividend stock to me. And it’s not just because it provides better all-round value that Marks & Spencer, at least on paper.

For the financial year to June, it trades on a P/E multiple of just 6.2 times. Its corresponding dividend yield meanwhile sits at 5.6%, sailing well above the 3.1% average for FTSE 250 shares.

I think Redrow’s long-term outlook is far more reassuring than the aforementioned retailer. Britain has a huge homes shortage that looks set to worsen as weak build rates persist and the population grows.

That doesn’t mean I’d buy the company’s shares for passive income however. This is because the housing market is locked in a downturn that could damage dividend levels during the short to medium term. Redrow’s own order book fell £400m year on year to £1.1bn as of 1 January.

Latest Nationwide data showed average home prices fell 1.1% last month, the biggest dip in over 10 years. Buyer demand is weak and could remain so as interest rates continue rising and the economy worsens.

I believe Redrow could deliver big returns over the next decade. It’s why I continue to hold several FTSE 100 homebuilders in my portfolio. But I think investors could be better off buying other dividend shares for market-beating income this year.

The post Should investors buy these cheap FTSE 250 income stocks in March? appeared first on The Motley Fool UK.

Compared to others in the housebuilding business, Redrow shares have done well. Barratt Developments has fallen 25% over the same period. And Persimmon is down a whopping 38%.

The likely effects of recession, and pressure on house prices, is starting to show through in forecasts. We’re looking at a forward price-to-earnings (P/E) multiple of a low 6.4, going by Redrow’s guidance for the year ending June. But forecasts see it rising close to 13, based on a predicted earnings drop in 2024.

The dividend yield would dip to around 3.5% if analysts are correct. On the current share price, the 2022 dividend yielded 5.8%. The company has only just completed a £100m share buyback in January, so the cash situation still looks reasonably healthy. Maybe those forecasts are a bit too pessimistic?

First half

In the six months to 1 January, revenue dropped a modest 2% to £1,031m. Profit before tax held up fairly well, declining just 2.5% to £198m. The fall in bottom line earnings per share was bigger though, down 5.6% to 45.4p.

Considering inflation and interest rates climbed during the half, the outcome looks generally positive. But the impact on mortgage costs won’t be felt immediately, and it will surely take time to feed through to sales and revenues.

On that score, Redrow’s total order book fell by 27% from the same stage a year previously, to £1.1bn. I see that as a more serious indication of what might be to come. So maybe those forecasts aren’t too far off the mark after all.

Cash

Cash is the key to managing a downturn. At 1 January, Redrow had net cash of £107m on the balance sheet, £135m less than a year ago. But it includes the effect of that £100m share buyback, completed just after the period ended.

The board has maintained the interim dividend at 10p per share, which suggests confidence in the cash situation. For the full year, it’s now predicting 28p per share. That’s not far behind last year’s 32p, and would yield 5.2% on today’s share price.

Outlook

Chief executive Matthew Pratt said that, for 2023, “early indications are better than anticipated and the market appears to be finding a new, natural level.”

Redrow dropped its full-year revenue guidance a little, from £2.1bn to £2.05bn. But it upped its operating margin prediction slightly, to between 18% and 18.5%. The first half margin was stronger, at 19.3%

While the 2023 outlook appears reasonably bullish, the full effects of the housing downturn might not be felt until next year.

Verdict

The medium-term outlook for Redrow shares is uncertain, but the second half has started out strongly with reservations up. Still, I wouldn’t be surprised to see the shares lose some of their recent gains in the coming months.

But I think Redrow could be a good long-term buy for investors who understand the sector.

The post Earnings: can Redrow shares maintain their recovery? appeared first on The Motley Fool UK.

Redrow

Redrow (LSE: RDW) should post first-half results on 9 February. Like most of the housebuilding sector, its shares slumped in 2022. But since October, we’ve seen a steady rise.

Redrow seems to think its own shares are worth buying, having completed a £100m share buyback in January. On 3 July 2022, the company had £288m net cash on its balance sheet. But that’s a long time ago in economic terms, and doesn’t reflect the soaring inflation and rising interest rates of the second half of the year.

I’ll mostly be looking at the company’s outlook on its cash situation. In the long term, I’d rate the housebuilding business as one of the most reliable there is. But in the short term, especially as we head into recession, cash flow could be paramount. And any weakness could send the Redrow share price recovery into reverse.

But on a forecast price-to-earnings (P/E) ratio of under seven, Redrow could be a good buy for long-term investors.

Primary Health Properties

We have full-year figures from Primary Health Properties (LSE: PHP) due on 22 February. And the past 12 months have not been kind to the shares. We’re looking at a 20% fall, and we haven’t seen the 2023 recovery that shares in general have been enjoying.

Primary Health is a Real Estate Investment Trust (REIT), and that sector is firmly out of fashion right now. But the company’s business isn’t really dependent on the property market as so many REITs are.

No, it invests in healthcare premises in the UK and Ireland, which it lets on long-term leases. With much of its income secured by government contracts, I’d say there’s good long-term visibility here. And that income has been translating into progressive dividends, with a forecast yield of 6%.

There must be some risk from the NHS crisis. And I can see investors continuing to shun real estate and keeping away. But it could be a nice long-term income investment.

Jupiter

Jupiter Fund Management (LSE: JUP) shares have been regaining ground, but are still well down along with financial stocks in general.

The fund management business has long been a favourite of mine. I’d rarely invest in its funds, but I do like buying its shares. It can be cyclical, and tends to show more volatility than the general stock market. But to me, that means it’s a good one to buy when the shares are down.

Despite the long-term growth of the UK stock market, the big investors still seem hung up on short-term performance. And when investors are selling shares, anything related to investment management often suffers a bigger sell-off

I think we could easily see more short-term volatility. But I’m seeing another tempting income prospect here. Full-year results are due on 24 February.

The post 3 FTSE 250 shares to buy before February results? appeared first on The Motley Fool UK.