What on earth’s gone wrong here? And is there any chance of a turnaround for this once-mission-critical chemicals business?

What happened to Synthomer?

It was only around five years ago that Synthomer shares were a popular pick among institutional investors. And it’s not hard to understand why, considering the stock had delivered a 2,078% total return between 2009 and 2021.

That’s the equivalent of a 29.2% average annualised return – enough to beat even billionaire investor Warren Buffett’s exceptional track record. And then suddenly it all came crashing down. Why?

Synthomer’s one of the most dramatic cases of self-inflicted value destruction. And while the stock started imploding in 2021, the problem actually originates from a decision made in 2020.

The pandemic triggered a massive supercycle in NBR latex – the raw material needed to make disposable medical gloves, which hospitals, care homes, and consumers rushed to buy as Covid-19 ravaged the world. And as one of the world’s largest producers of this special material, Synthomer entered into a gold rush with both revenues and profits exploding.

But management made one crucial error. They assumed this momentum would last forever. And proceeded to make two expensive and disastrous acquisitions of Omnova Solutions in 2020 and the adhesives division of Eastman Chemical in 2021.

To fund these deals, management saddled the balance sheet with over £1bn in debt, creating a ticking time bomb. Then in 2022, it happened. Lockdowns were lifted, the pandemic subsided, and demand collapsed overnight.

With earnings imploding, the company was forced to repeatedly renegotiate its debt covenants to avoid a breach, and to this day, the debt problem hasn’t been solved.

What now?

In 2026, most investors have written off this business entirely. Yet despite its deep unpopularity, there may actually be a glimmer of hope. Management’s in the midst of refinancing negotiations with its creditors. And to be fair, Synthomer might have an ace up its sleeve to secure relatively favourable terms.

As it turns out, the group’s self-help initiatives are finally starting to bear fruit. Free cash flow generation has returned to positive territory after years of being in the red. And EBITDA has also returned to growth, driven by cost-cutting margin expansion.

This goes to show that Synthomer isn’t a broken business – merely an overleveraged one. And if the current trends continue and creditors’ patience doesn’t run out, there now appears to be a genuine road to recovery available for this penny share.

The bottom line

Synthomer has until 2027 to deliver more material improvement to secure a new deal with creditors.

While management’s ruled out using an equity raise to solve its debt problem, the company ultimately may not have a choice if progress stagnates. And for shareholders, this worst-case scenario could result in their investment getting utterly obliterated by dilution.

With that in mind, buying shares in Synthomer isn’t for the faint hearted. It’s a high-risk turnaround play that could either leave investors laughing or weeping based on what happens over the next eight to 12 months. For now, it’s not a risk I’m willing to take.

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Sadly, finding these winners early on is far easier said than done. After all, there are hundreds of very small penny shares to pick from. But luckily, institutional investors have already started narrowing down the list with their own research. And as of April 2026, there are three tiny stocks that have the potential to be big winners.

Let’s dive in.

3 top professional picks

The three small businesses that institutional analysts have flagged as potentially terrific buys in 2026 are Synthomer (LSE:SYNT), Topps Tiles (LSE:TPT), and Michelmersh Brick Holdings (LSE:MBH).

Each company is fairly unique, but they all target one end-market: construction.

Synthomer, in addition to other products, supplies specialist polymers used in external paints, architectural coatings, and waterproof membranes for roofs. Topps Tiles is the UK’s leading specialist wall and floor tile retailer, supplying both home renovators and home builders. While Michelmersh is trying to help solve the UK’s chronic shortage of clay bricks.

Each business supplies a different part of the construction sector’s value chain. As such, this basket of stocks appears well-positioned to capitalise on the structural tailwinds created by the government’s commitment to build 1.5m new homes without directly competing with each other.

If the share price forecasts are right, investors could be in for some impressive gains over the next 12 months, and possibly even bigger returns over the coming years.

Needless to say, a combined 51.4% potential gain by this time next year certainly suggests that these businesses might indeed be among the best stocks to buy now.

But what’s the catch?

The risks

Despite the government setting ambitious supportive homebuilding targets, the UK construction sector remains genuinely weak on the back of rising raw material and labour costs, made worse by a continuous unaffordable-housing crisis.

As a result, all three businesses are struggling to achieve meaningful revenue and profit growth, with the pressure only amplified for Synthomer and Topps Tiles, whose balance sheets carry heavy debt burdens.

This impact has only been made worse by the escalating geopolitical environment, with costs being driven even higher.

What does this all mean for investors?

The bottom line

While each company has a genuine path to success, external headwinds could nonetheless prevent them from achieving their full potential. And without deep coffers to help absorb the short-term impact, these penny stocks could see their share prices fall much further before a cyclical recovery emerges.

Personally, out of this basket, Michelmersh appears to be in the strongest position, leveraging superior aesthetics and durability to generate some pricing power in a highly commoditised brick market. In fact, that’s why the company now enjoys the biggest operating margins out of the three.

So, while I’m not 100% convinced that Michelmersh is among the best stocks to buy now, it certainly has enough potential to warrant closer inspection.

The post Experts say these are 3 top UK penny stocks to buy in an ISA right now appeared first on The Motley Fool UK.

But in the last 12 months, something interesting has started happening.

UK penny stocks are back on the rise. The FTSE AIM All-Share index has changed course, climbing by nearly 20% since April 2025. And in the words of JP Morgan analyst Eduardo Lecubarri, “We are at the gates of the best stock picking era we have seen in our lifetime”.

Here’s why now could be a fantastic time to consider investing in UK penny shares.

Catalysts for explosive returns

Every penny share has its own set of challenges and opportunities. But compared to their larger peers, many are now trading at deeply discounted valuations relative to their fundamentals.

Why? Because smaller businesses are more vulnerable to economic shocks. And with the UK economy looking particularly shaky, the market is pricing in additional risk.

But that also means a lot of bargain-buying opportunities have potentially been created. In fact, we’re already seeing evidence of opportunistic transactions within the M&A space as 64 UK stocks received a buyout offer last year, with some massive acquisition premiums being paid.

While exciting, that doesn’t mean everyone should start diving in headfirst. Penny shares are still high-risk investments with severe levels of failure rates.

Nevertheless, for prudent long-term investors with an eye for identifying quality young businesses, some explosive portfolio returns could be unlocked in the coming years.

So, which penny shares should investors have on their radars today?

Top picks from the pros

The analyst team at Peel Hunt is tracking quite a few penny stock opportunities. But the one with potentially explosive recovery potential is Synthomer (LSE:SYNT) with a 385% 12-month share price growth forecast!

The specialist polymer and adhesives manufacturer has only recently fallen into penny share territory after a severe strategic mistake during the pandemic, followed by an industry-wide slowdown in the years since. The result was the rapid and painful destruction of shareholder value, triggering a massive debt crisis.

But in the last few weeks, the stock has already skyrocketed by over 140%. That’s because management is making progress in negotiating a refinancing agreement for its troubling debt pile, ruling out the need to raise money by issuing new shares.

At the same time, self-help efforts have helped deliver positive free cash flow and improved profit margins. And combined, Synthomer may be close to reaching a crucial recovery inflexion point.

While that’s exciting, it’s important to recognise that the penny share is not out of the woods yet. After all, it still has just shy of £1bn in debts & equivalents versus its market cap of £70m, applying serious financial pressure.

But if cash flows continue to improve on the back of recovering demand, and management is able to unlock some hidden value through non-core asset disposals, the penny share could prove to be a massively lucrative investment in April 2026.

It’s a classic high-risk, high-reward opportunity. But it’s one driven by improving fundamentals rather than speculation. That’s why, for investors with a high-risk tolerance, Synthomer shares could indeed be worth a closer look.

The post Is 2026 a great time to start buying penny shares? appeared first on The Motley Fool UK.

Risky, yes — but if these issues improve in 2026, all three could make an impressive comeback. I wouldn’t bet the house on any of them but a small allocation could deliver a chunky return.

Severfield

Tariff threats hit the share price of York-based structural steel contractor Severfield (LSE:SFR) in late 2024 and 2025. At the same time, higher steel costs hurt margins and sentiment, so last year’s numbers were rough. Plus, the final dividend was scrapped.

As a result, the price crashed by more than 50% through 2025. By now, though, the impact of these issues is most likely priced in. Steel remains in high demand and it’s hard to imagine there’s worse still to come.

Looking ahead, the order book is actually growing again and management is sticking to its 2026 guidance. At the same time, the company is refocusing on core projects like data centres and infrastructure. That gives decent visibility for earnings once pricing stabilises.

So if the wider economy calms down and Severfield pulls off this new strategy, a rebound from today’s levels is not unrealistic. Yes, liquidity is limited and there’s cyclical risk, so it may not be smooth — but I feel it’s worth consideration.

Synthomer

Synthomer (LSE: SYNT) makes chemicals that go into things like paint and building products, the type you’d see in B&Q or similar hardware stores. In 2025, orders tapered off and it suffered a sharp decline in sales. Investors got spooked, even though profit margins improved a bit. At the same time, the company still had heavy borrowings and leverage of around six times earnings, which is uncomfortable.

S&P subsequently cut the company’s credit rating to ‘junk’, warning about cash flow and banking covenants, further hurting confidence. As a result, the company’s share price took a brutal 57% hit, with investors wary about weakening demand and rising debt.

But a recent January update adds hope and looks like a step in the right direction. It reported positive free cash flow, slightly lower debt, and a £50m receivables deal from major shareholder Kuala Lumpur Kepong Berhad. Together, these improvements have eased pressure, suggesting a 2026 recovery is possible.

It’s still at high risk from tariff impacts and demand shocks, but the low price and improving numbers make it an appealing option to consider.

Microlise

Microlise (LSE: SAAS) provides technological transport solutions that enable customers to reduce costs and environmental impact. In November 2025, it released a trading update expecting revenue to fall below expectations, with cost measures including a 10% headcount reduction.

Big global customers were buying fewer systems, and some UK projects were delayed, including one with a big retailer after a cyber‑attack. This led to a sharp 30% drop in the share price.

However, final results released in January this year actually saw a 16% rise in recurring revenue, with strong cash growth and £5m in cost savings. Yes, the UK’s economic recovery is still in question, so the share price could be hit by further volatility.

But overall, this feels like a company stabilising, not sinking. In my view, a 2026 recovery looks quite possible, so it’s worth a look.

The post 3 promising penny stocks that suffered in 2025… but could rebound in 2026! appeared first on The Motley Fool UK.

Of course, finding such explosive opportunities is far easier said than done. And shareholders of Synthomer (LSE:SYNT) have learned firsthand what it feels like to be scathed by a volatile micro-cap enterprise.

For context, the speciality polymer manufacturer has seen its market-cap collapse by over 60% in the last 12 months. And zooming out to the last five years, the losses have been even more catastrophic with a 98% freefall.

Yet looking at some of the latest institutional forecasts, some analysts have seemingly started eying up this penny stock for a potentially explosive turnaround.

So if these predictions are correct, how much money could investors potentially make with a £500 investment today?

What’s going on with Synthomer?

Backing a niche chemicals business can be quite a wild ride. When times are good, limited competition can result in a thriving business with ample pricing power. But when the cycle takes a nasty turn, sales and profits can quickly disappear.

That’s certainly been the case with Synthomer. The once-FTSE 250 stock has suffered from a severe collapse in end-market demand. And while revenue has remained somewhat resilient, earnings have been stuck in the red for almost five consecutive years.

Cyclical businesses can often find themselves becoming temporarily unprofitable. However, in the case of Synthomer, the problem’s been amplified by an enormous debt burden. In fact, as of June 2025, the group has £961m of debts & equivalents on its balance sheet versus a market cap of just £86m.

Needless to say, that’s a massive red flag and suggests the group’s in significant financial peril having already had to renegotiate its covenants with creditors. And with that in mind, it’s no surprise that the penny stock has utterly collapsed in recent years.

But this may have created an intriguing opportunity…

Explosive recovery potential

While Synthomer’s challenges are hard to ignore, management’s taking action. The company has already begun reorganising its operations, divesting non-critical manufacturing sites and shifting its product mix toward adhesives – an area of the business that’s delivering more encouraging results.

These strategic and self-help initiatives have started making a positive impact. Free cash flow’s back in the black, resulting in net debt seeing a small but noticeable reduction, from £597m to £575m year on year.

To be clear, the company still has a massive debt problem with a giant wave of maturities emerging in 2027. However, continued improvement in financial strength nonetheless opens the door to friendlier negotiations with creditors next year.

Under the assumption that both operations and end-market demand improve this year, analysts at JP Morgan have placed their share price target at 120p, a 125% potential recovery gain. That’s enough to transform £500 into £1,125 over the next 12 months.

Such an outcome will require near-perfect execution on multiple fronts. As such, this penny stock is by no means guaranteed to deliver on JP Morgan’s expectations. But for deep-value investors looking for a recovery opportunity, Synthomer might be worth adding to a watchlist.

The post Investing £500 in this penny stock could explode to… appeared first on The Motley Fool UK.

What happened? And with the stock now 65% cheaper, is this secretly a terrific buying opportunity for growth investors?

Investigating the fall

As a quick crash course, Synthomer’s a global chemicals producer specialising in high- performance, water-based polymers.

It has a bit of a niche portfolio of products. But these polymers nonetheless play a crucial role across a wide variety of modern applications. This includes masonry coatings and waterproof membranes for the construction sector, industrial adhesives for the packaging and logistics industry, and protective chemical-resistant gloves for laboratories and hospitals.

Needless to say, its products are important, with demand still largely robust. So what’s going on?

The problem actually stems back to 2020. With demand for medical gloves skyrocketing during the pandemic, management loaded up the balance sheet with debt to acquire Omnova Solutions to rapidly expand its medical glove production capacity.

The problem is, Synthomer massively overpaid. And when demand collapsed from pandemic peaks, glove revenues quickly dried up, leaving the company with a mountain of debt that continues to be problematic today.

In fact, Synthomer has already had to negotiate with its banking syndicate to not only temporarily increase debt covenants but also extend the increase until the end of 2026.

Credit rating agencies have subsequently lowered their rating, which was already in ‘junk bond’ territory. And with additional cash flow uncertainty due to US tariffs, it isn’t surprising to see the now-penny share take a beating.

A distressed turnaround play?

Despite the financial troubles Synthomer finds itself in, the underlying business remains strategically sound with long-term structural demand for its products intact. As such, if management can get a good grip on its finances and bring debt under control, the company could be ripe for a turnaround.

Several non-core asset sales have already been executed to help raise capital and pay down debts. Meanwhile, the firm’s also executing several self-help initiatives to boost internal efficiency and generate more cash flow.

Furthermore, the group’s also set to benefit from the wider macroeconomic tailwinds of interest rate cuts. Beyond expanding its refinancing options, lower interest rates are also likely to spark more construction activity, driving up demand for a number of polymer products.

So with all that in mind, where does this leave investors today?

The bottom line

While Synthomer’s facing a bit of a debt crisis, the company isn’t doomed just yet. With good execution and a bit of restructuring, Synthomer seems capable of delivering a solid turnaround.

But sadly, none of this is guaranteed. And with the clock ticking on its covenant extensions, continued subdued demand from its core end-markets could see the penny share tumble even further.

That’s why, until some solid recovery progress emerges, I’m not rushing to invest in this penny stock today. Luckily, there are plenty of other turnaround opportunities to explore in this area of the stock market.

The post After crashing 65% from its 52-week high, is this penny share a screaming buy? appeared first on The Motley Fool UK.

But as every experienced investor knows, past performance doesn’t guarantee future results. So now that 2026 has kicked off, which stocks could potentially deliver similar explosive gains? Here are three top picks from institutional investors.

1. PureTech Health

First up is PureTech Health (LSE:PRTC) – a clinical-stage biotech enterprise with a diversified portfolio of drug candidates.

Revenues have been quite lumpy in recent years, and higher interest rates have made it more expensive to fund research. However, the analyst team at Peel Hunt believe investors are drastically undervaluing the earnings potential of the group’s drug portfolio should its treatments eventually receive the regulatory green light.

Bringing new drugs to the commercial market is obviously easier said than done, with most attempts ending in failure. But if PureTech’s successful, the Peel Hunt team believes the stock could skyrocket to 508p – a massive 278% potential gain!

2. AFC Energy

AFC Energy‘s (LSE:AFC) another UK stock with explosive potential, according to experts. The most optimistic share price forecasts for the fuel cell technology business suggest a 145% capital gain. And it isn’t hard to see why some experts are excited.

With more governments worldwide striving to reach Net Zero, AFC’s hydrogen fuel cell technology offers a unique solution to off-grid clean energy needs for electric vehicle (EV) recharging stations, data centres, and even construction sites.

Of course, the hydrogen market remains young, with adoption unproven. And with AFC only recently starting to ship its fuel cells to customers, it isn’t clear whether it can scale up operations smoothly.

Nevertheless, with commercial orders now starting to emerge, the group’s seemingly at the beginning of a long and potentially lucrative journey.

3. Synthomer

Synthomer‘s (LSE:SYNT) also flagged for its exciting potential, with an average 130p share price target among experts — 115% higher than where the stock trades today.

Now that demand for its speciality polymers and adhesives is back on the rise, the multi-year downturn in its share price could be set to reverse. Even more so, given all the self-help initiatives the business has been executing to bolster margins.

However, the exact speed and timing of this recover remains a bit of a question mark with its Coatings & Construction Solutions segment continuing to face cyclical pressures that could delay its rebound.

The bottom line

All three businesses seemingly have substantial untapped growth potential that could propel investor portfolios in 2026. But similarly, each is also navigating tough challenges that could ultimately prevent them from realising these gains.

That’s why, no matter how optimistic the share price forecasts look on paper, investors always need to do a deep dive to make sure they understand both the risks and potential rewards. And personally, I think there are many better, lower-risk UK shares to take advantage of today.

The post 3 UK shares tipped to more than DOUBLE my money in 2026! appeared first on The Motley Fool UK.

Here are three UK-listed shares currently sitting near their historic lows. Are they worth a closer look?

Tullow Oil

Tullow Oil (LSE: TLW) has had a rough few years, but it’s not out of the game yet. The Africa-focused driller recently appointed a new chief executive, signalling a fresh start for the business. It also strengthened its balance sheet by $120m through the sale of its Kenyan assets and secured an extended licence in Ghana to 2040 — a key long-term boost.

However, production from its flagship Jubilee field slipped 32.8% to 11m barrels this year, largely due to maintenance shutdowns between March and April. That’s been reflected in its share price, which trades at just 10.2p – not far above its 7.16p low.

On paper, Tullow looks astonishingly cheap, with a forward price-to-earnings (P/E) ratio of only 2.42. But the low valuation comes with good reason. After a profitable 2024, it’s slipped back into the red, with just £141m in cash compared with £1.81bn in debt. Forecasts suggest little improvement in revenue or earnings for several years.

While I think risk-tolerant investors could consider it for a speculative turnaround play, its heavy debt and inconsistent profitability could still make it a tricky stock to hold long term.

Mobico Group

Mobico Group (LSE: MCG), the owner of National Express, is another name trading close to rock bottom. The transport operator’s shares have fallen around 90% in the past decade and currently sit at 27.82p — just above their 24.3p low.

Despite reporting £3bn in revenue, Mobico’s earnings collapsed by 610% year on year, resulting in an £824m loss. Its £3bn in assets and £1.48bn in debt highlight a stretched balance sheet.

Still, the company recently won a promising eight-year, €500m transport contract in Saudi Arabia.

The forward P/E ratio of 3.9 looks tempting, but unless profitability returns soon, that discount may not matter. Persistent losses, high debt and inflation-linked cost pressures make this one a value share that’s probably a bit risky to consider right now.

Synthomer

Synthomer (LSE: SYNT), a chemicals producer, might be the most interesting of the three. Trading at 59.6p, its barely above its 56.6p low having recently lost £72.6m despite generating £1.96bn in revenue.

Surprisingly, its balance sheet remains relatively sound, with assets outweighing liabilities and debt comfortably covered by equity.

Out of seven analysts tracking the company, the average 12-month price target is 111p — an 86% premium to today’s price. Earnings are forecast to rebound next year to 6p per share, which could signal a turnaround if demand for its speciality polymers picks up.

The main risk is that recovery may take longer than expected, particularly if industrial demand stays weak in Europe.

Still, I think it’s one of the more promising value shares to consider on the FTSE 250 right now.

The bottom line?

Value investing often requires patience and strong nerves. While these stocks are all trading near their lows, only a clear path to profitability will determine whether they become genuine bargains — or stay stuck in the bargain bin.

The post Are these 3 beaten-down British value shares worth a second look? appeared first on The Motley Fool UK.

And yet the company still brought in almost £2bn in revenue last year — more than any other penny stock on the market. Once a constituent of the FTSE 250, Synthomer dropped into penny stock territory last month after its market cap fell below £100m.

In its 2024 full-year results, the group reported a net income loss of £72.6m – down sharply from a £208m profit in 2021. The latest half-year results for 2025 made matters worse, with an earnings per share (EPS) loss of -26p, compared with forecasts of a 2p profit.

So what has gone wrong — and can it recover?

The boom and bust years

Synthomer’s story is one of cycles. In 2018, the company enjoyed a sharp boost in demand for nitrile butadiene rubber (NBR), a key ingredient in disposable medical gloves. Earnings spiked and acquisitions helped position the group as a global speciality chemicals player, giving investors confidence in its growth story.

By 2019, that momentum faded. Higher raw material costs and weaker demand in Europe and Asia saw profits contract. Then came 2020 and the pandemic. Once again, glove demand soared, sparking another rally.

But the boom was short-lived. The acquisition of Omnova Solutions in 2020 saddled the company with heavy debt. As the pandemic faded and glove demand normalised, Synthomer was left with rising costs, falling profits, and a balance sheet under pressure.

The shares, now trading around 58p, are down 98.5% since a September 2021 high above 4,000p. Investors who bought at the top have seen extraordinary value wiped away.

Expansion and financials

In October 2021, Synthomer bought Eastman Chemical’s adhesives business for $1bn, which included a factory in the Netherlands producing around 80 different synthetic resins. While the deal expanded the product base, it added to the debt pile.

Even ,so, the balance sheet is not without merit. The group holds £2.45bn in assets and £996.6m in equity against £960m of debt. It also generated £15.7m in operating cash flow last year. 

Management is now focused on deleveraging, and covenant relief agreed with lenders runs until 2026, giving some breathing room. Plus, free cash flow improved last year and net debt has already been almost halved from prior levels.

Could it recover?

Recovery depends on reducing the net debt-to-EBITDA ratio to a safer level. That may involve selling non-core assets, refinancing on better terms or waiting for interest rates to ease. Any sign of earnings stabilisation or debt reduction could prompt a rerating of the Synthomer share price.

Personally, I think this penny stock is only worth considering for investors with a strong risk appetite. It could be a classic high-risk, high-reward turnaround story. 

But for me, the heavy leverage, continued losses and uncertain macroeconomic environment make it look too speculative for now.

The post Exploring Synthomer — the unprofitable penny stock with £2bn in revenue appeared first on The Motley Fool UK.

The key to investing well though, is working out when the potential risks are worth the expected rewards. Here are two UK stocks I think are interesting from this perspective.

Synthomer

Synthomer’s (LSE:SYNT) a speciality chemicals firm that’s been having a tough time since the pandemic. And this shows up in the company’s balance sheet.

According to its latest update, net debt has gone from £500m to £560m over the last six months. That puts it at 4.7 times EBITDA, which is a lot for a cyclical business – and this is the big risk.

For many, that might be enough to put them off Synthomer entirely. But there’s also plenty to be positive about that I think makes it worth a look for investors. 

Synthomer P/S ratio 2015-24

Created at TradingView

First – and most obviously – the stock’s unusually cheap at the moment. On a price-to-sales (P/S) basis, it’s trading at some of its lowest levels for a decade. 

Second, the company has been dealing with unusually low demand from its end markets, especially construction. This has been going on for some time, but I don’t see it lasting forever.

The firm’s net income’s expected to be negative, but free cash flow this year should be positive. Investors who are able to be patient could find there are big rewards when things pick up.

Taylor Wimpey

Along with other UK housebuilders, Taylor Wimpey’s (LSE:TW) being investigated by the Competition and Markets Authority (CMA). And the outcome’s very uncertain.

That makes the shares risky. And unlike Synthomer, it’s not as though this is reflected in a low P/S multiple – Taylor Wimpey’s trading roughly in line with its historic levels.

What investors do get though, is an unusually high dividend yield. At the moment, it’s above 6%, which is well above its average over the last decade. 

Taylor Wimpey dividend yield 2015-24

Created at TradingView

A high yield can sometimes be a sign investors are worried about the dividend being cut. But with Taylor Wimpey, I think it’s easy to overestimate the danger of this. 

The company bases its dividend on its assets, rather than its cash flows. This makes it more durable in the event of a downturn and is the reason I’d consider it over other housebuilders.

As a result, I think Taylor Wimpey might be a good stock for investors looking for passive income to consider buying. Despite the uncertainty, the dividend could generate good returns.

Risks and rewards

Even by ordinary stock market standards, I’d suggest both Synthomer and Taylor Wimpey are unusually risky. In each case, though, I can see the potential for big returns if things go right. 

Synthomer’s stock could climb sharply when its end markets recover. And if Taylor Wimpey comes through the CMA investigation, investors could be collecting dividends for a long time.

I wouldn’t make either a big part of my Stocks and Shares ISA. But I do think they could be interesting additions to consider for a diversified portfolio for investors prepared to tolerate the risks.

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