Its business model is built on recurring revenue, low customer churn, and strong cash conversion, giving it the sort of stability that income investors such as me crave.

So, what is the stock and how much could investors make from it?

Telecoms to energy stock

The company behind those numbers is Telecom Plus (LSE: TEP), the FTSE firm best known for its Utility Warehouse brand. Unlike traditional energy suppliers, it operates a bundled‑services model that keeps customers loyal and cash flows predictable.

And it covers everything from broadband to mobile to home energy. That mix of essential services creates unusually strong recurring revenue — exactly the foundation that supports a rising dividend profile.

A risk to these is any regulatory changes affecting household utility pricing or commissions, which could dent earnings. And this is ultimately what powers any firm’s dividends (and share price) over time. Another would be increased competition that could squeeze margins.

However, consensus analysts’ forecasts are that Telecom Plus’s earnings will rise by an average 10% a year over the medium term.

Rising dividends from a high base

The UK’s only integrated multi-utility provider currently generates a dividend yield of 6.9%. This is more than double the current 3.4% average dividend yield of its home FTSE 250 index.

However, analysts project the dividend will rise to 101.4p this year, 110.2p next year, 118p in 2028, and 124p in 2029.

These would generate respective dividend yields of 7.5%, 8.1%, 8.7%, and 9.1% on the current £13.60 share price.

How much dividend income can be made?

A £20,000 holding in Telecom Plus could make investors £29,516 in dividends after 10 years and £283,516 after 30 years. This period is commonly seen as the standard investment cycle for long-term investors. It begins with first investments around 20 and ends in early retirement options around 50.

These numbers assume the forecast 9.1% as the average yield (but this could go down or up over time as well as many other changes happening to the company). They also factor in the dividends being reinvested back into the shares to capture the turbocharging effect of ‘dividend compounding’.

Including the original £20,000 investment, the holding could be worth £303,516 by the end of 30 years. At that point, it could be producing a passive annual income of £27,620 from dividends alone!

My investment view

For me, Telecom Plus is the kind of income share that is very hard to overlook.

Its starting yield near 7%, backed by recurring revenue and a long record of dependable payouts already puts it in rare company. And the prospect of that rising towards 9%+ over the coming years only strengthens the case.

My existing stake in another firm in the telecoms sector — BT — precludes me from buying it currently. To do so would unsettle the risk/reward balance of my portfolio. But for long‑term investors who want growing passive income from a stable, essential‑services business, it seems well worth a closer look.

The post A 9.1% forecast yield! 1 under-the-radar FTSE income share to buy today? appeared first on The Motley Fool UK.

This is where things get interesting. Some analysts now believe a handful of mid‑cap names could double or more over the next year. Three that keep popping up in my stock screener are Telecom Plus (LSE: TEP), Craneware, and GlobalData (LSE: DATA).

But cheap does not automatically mean good value. So it is worth lifting the bonnet and checking what we’re really looking at.

Telecom Plus

Telecom Plus is a multi‑utility provider selling gas, electricity, broadband, and phone contracts under its Utility Warehouse brand. It is unusual in that it grows mainly by word‑of‑mouth referrals, which helps keep marketing costs down and customers sticky. On paper, it looks very appealing for a defensive business: a 7.56% dividend yield, a solid price-to-earnings (P/E) ratio of 15.7, and a chunky 28.8% return on equity (ROE).

The main risks are that utilities are tightly regulated and competition is fierce. With an historically high payout ratio, some have questioned just how far that big dividend can stretch if growth slows.

Still, analysts are optimistic, with the average 12‑month price target expecting 100% growth from here. That suggests the market might be underestimating its ability to keep adding customers and turning that into profit.

Craneware

Craneware sells management software to hospitals for billing, pricing, and reimbursement – a niche, but important, part of the healthcare system. Earnings are up 45% year on year, helped by rising revenue, strong margins around 30%, and ongoing demand as hospitals digitise their back‑offices.

On top of that, Craneware has very little debt compared to equity, which gives it more resilience if interest rates stay higher for longer. The flip side is that the shares already trade on a high valuation and can be volatile – any slowdown in US hospital spending or IT budgets could quickly knock sentiment.

GlobalData

GlobalData is a data and analytics group that sells subscription research to companies and governments across sectors like healthcare, technology, and consumer goods. In its latest year, it delivered 12.8% revenue growth, helped by recent acquisitions and an ‘AI‑first’ push to make its platform more useful to clients.

Earnings are up 16.7% so far this year, and analysts see scope for further margin expansion as management executes its growth plan. The debt‑to‑equity ratio of 0.63 is manageable, but it’s higher than Craneware’s, so the balance sheet is not quite as pristine.

Key risks here are that some of that growth has come from deals rather than pure organic progress. If a recession rears its ugly head, data and research spending could be cut, hurting profits.

Final thoughts

All three shares have credible growth opportunities, but Telecom Plus stands out to me as one worth considering. It combines essential services, strong profitability, and a very generous yield.

All that at a valuation that doesn’t look too stretched for a potential long‑term compounder.

Of course, none of these should be ‘bet the farm’ ideas. But as part of a diversified portfolio – especially inside an ISA where gains and dividends are shielded from UK tax – a careful allocation could add some real excitement to long‑term returns.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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But with valuations stretched and US GDP growth forecast at only 2%-2.5%, analysts don’t expect the same in 2026. Overall, the Dow isn’t expected to grow more than 10% in a best case scenario, with lower forecasts predicting only 3% growth.

These three high-yielding UK shares are forecast to grow far more.

Kainos

Kainos (LSE: KNOS) helps big firms like the NHS or banks to upgrade their digital systems, especially with Workday software for payroll and HR. It’s been growing revenue steadily the past few years, with increasing public sector deals and cloud demand as UK government tech expenditure grows.

Analysts forecast average price growth of around 67% in the coming 12 months. The 4% yield’s reliable too, covered by cash flow even after five years of increases, and shares trade on a fair-ish multiple around 29 times earnings. 

Still, it faces stiff competition from lower-cost alternatives in regions like India. If the economy dips, tightening budgets could send clients looking elsewhere. Still, the combination of growth and income makes it worth considering in my book — even with the tech-cycle wobbles.

Telecom Plus

Think of Telecom Plus (LSE: TEP) as a one-stop shop for broadband, mobile, gas, and electric. By bundling bills together, it saves customers cash and builds loyalty. The latest half-year results showed steady profits despite energy price swings, with dividends up 13% last year to a near-7% yield. Cash coverage is a bit thin at only 1.2 times but is backed by 25 years of payments.

Plus, the average 12-month analyst forecast is 68% higher than today’s price. That’s a chunky combo of income and growth!

But it’s a competitve sector, with rivals Octopus and Bulb muscling in on its market share. On the plus side, falling wholesale energy costs should boost profits as UK households switch. But any change in regulations could further pressure margins. 

For now, the balance sheet looks solid and cash generation is promising. For investors seeking dependable income with growth potential, it’s a strong contender to consider.

MONY Group

MONY Group (LSE: MONY) operates price comparison sites like MoneySuperMarket, helping customers find the best deals on loans, insurance, and broadband. Revenue recently ticked up 1% to £225m amid car insurance woes while EBITDA rose 2% and SuperSaveClub membership hit 1.5m, now 14% of sales.

The core attraction here is the stock’s 8.2% yield, but the average 57.5% growth forecast is a big bonus. Analysts have cited potential UK rate cuts as driving interest in switching providers.

But lately, AI-driven comparisons and fierce Google ad competition threaten its business model. If consumer spending softens, it could stall traffic and impact profits.

While the growth narrative is lower here, the yield is undeniably attractive for UK income hunters. It’s long been a favourite of mine and the current low price also makes it worth considering.

The post The Dow Jones may be at 50k but these 3 UK shares are forecast to grow further in 2026 appeared first on The Motley Fool UK.

While the share price has drifted lower of late, its dividend-yield allure has only strengthened. Resilient cash generation and a business model designed for steady, recurring revenue underpin this.

For investors prioritising passive income over price action, I believe this stock offers a rare blend of yield, stability and long‑term dependability.

So, how much could investors make from it over time?

Rising dividend yield projections

The UK’s only integrated multi-utility provider currently generates a dividend yield of 6.9%. This is nearly double the current average dividend yield of the FTSE 250 of 3.5%.

Moreover, its dividend record has strengthened meaningfully in recent years. In 2022 it was 57p, in 2023 80p, in 2024 83p, and in 2025 94p.

Looking ahead, the consensus forecast of analysts indicates that these will rise again — to 101.4p this year, 110.2p next year, and 118p in 2028. This would generate respective dividend yields of 7.5%, 8.1%, and 8.7% on the current £13.59 share price.

These levels sit firmly in the ultra‑high-yield bracket. This is a rarity across the FTSE indexes, and a key reason why I view the stock as a compelling passive‑income candidate.

How justified are these forecasts?

Rises in a company’s dividends (and share price) are ultimately powered by growth in earnings (or ‘profits’). A risk to these for Telecom Plus is intense competition cutting into its customer growth and squeezing margins.

However, analysts forecast its earnings will grow by an average of 10.3% a year to end-2028. This looks well justified to me, given the firm’s recent results.

The full fiscal-year 2025 figures saw adjusted pre-tax profit climb 8.1% year on year to a record £126.3m. Customer numbers jumped 15% to 1.163m, and the dividend increased 13.3% to the current 94p.

The company also announced a major partnership with TalkTalk. This saw the acquisition of around 95,000 fixed-line and broadband customers to which Telecom Plus can upsell additional utility services.

Management reiterated its medium-term target of 2m customers and continued double-digit growth for the fiscal-year 2026. It did the same for its adjusted pre-tax profit target for 2026 of £132m-£138m (versus £126.3m in 2025).

How much could be made over time?

A £5,000 holding in the firm would make investors £6,897 in dividends after 10 years on the forecast 8.7% yield. This assumes the dividend payout stays at its current level, although it could rise, fall, or remain unchanged.

This also assumes that dividends are reinvested back into the shares to harness the power of ‘dividend compounding’.

On the same basis, after 30 years the dividends received would total £62,358. Including the original £5,000 investment, the holding would be worth £67,358 by then.

At that point, it would be producing a passive annual income of around £5,860 from dividends alone!

My investment view

I already have a holding in the same sector — BT — so buying another might unbalance the risk-reward profile of my portfolio.

Nonetheless, I am trying to convince myself that actually it might be okay to buy it anyway for… well, some reason or another.

For those without this conundrum and looking for a strong ultra-high-yield passive‑income candidate, I think the stock is well worth considering.

The post Here’s how investors could target £5,860 in yearly passive income from £5,000 in this overlooked FTSE 250 gem! appeared first on The Motley Fool UK.

Luckily, by planning ahead and making some prudent moves in the stock market, investors can significantly improve their odds of enjoying a fancier retirement lifestyle. With the right strategy and ISA portfolio, it’s possible (if not guaranteed) for investors to triple the 2025/26 State Pension. That’s an extra £37,644 a year entirely tax-free.

Here’s how.

Setting investment goals

The objective of this ISA portfolio is simple: generate £37,644 in annual passive retirement income. To do this sustainably, most financial advisors recommend following the 4% rule, where only 4% of a portfolio is withdrawn each year.

The idea here is to ensure wealth continues to compound even after investors start spending their fortune.

At 4%, that means a portfolio would need to be worth £941,100 to generate triple the updated State Pension. Obviously, that’s a considerable lump sum of cash. However, it’s not as impossible to obtain as most people might think.

Even when starting from scratch, drip feeding £500 each month at an average 8% return a year is enough to surpass this milestone after around 33 years. This perfectly demonstrates the importance of starting early when it comes to investing.

Yet, there are some clever strategies investors can use to drastically speed up the process.

Aiming higher

Assuming the stock market continues to grow roughly in line with its historical rate, index investors can reasonably expect to earn an average of 8% a year. But for intelligent stock pickers, the gains can be far more substantial.

Telecom Plus (LSE:TEP) serves as a perfect example to consider. Operating under the name of Utility Warehouse, the business is a bundled service provider for essentials like gas, electricity, broadband, mobile, and insurance to UK households and businesses.

This bundling model has been a bit of a secret weapon over the last two decades. It generates continuous cross-selling opportunities as well as generating high levels of customer retention. Consequently, its customer base has expanded significantly since 2005 to almost 1.4 million, with earnings still outpacing the market even in the last five years.

As a result, anyone who invested 20 years’ ago and reinvested dividends along the way has earned an average annualised return of 17.2%. Transforming £500 a month into just over £1m in the process.

Still worth considering?

As a £4.4bn enterprise, it’ll be difficult for Telecom Plus shares to generate 17.2% annualised returns for the next two decades. But that doesn’t mean it can’t continue to outshine the wider market.

Its bundling model continues to be very sticky, with customer acquisition costs plummeting, supported by growing word of mouth. There are still some notable threats and limitations, like the price caps enforced by Ofgem. And seeing the success of bundling, leading energy suppliers have begun exploring their own offerings in this space.

Nevertheless, given the group’s tremendous track record, investors seeking to secure their retirement may want to take a closer look.

The post How much do you need in an ISA to triple the 2026 State Pension? appeared first on The Motley Fool UK.

One such opportunity has appeared in my recent research: Telecom Plus (LSE: TEP), better known as Utility Warehouse. It is the UK’s only integrated multi-utility provider, bundling energy, broadband, mobile, and insurance into one subscription.

So why has it surfaced now, and how much could it make in passive income?

On the radar

The firm has popped up on my stock screener because of a possible acquisition. According to a 5 December Financial Times report, Telecom Plus is in talks to buy the retail energy business of Ovo Energy. This is one of Britain’s largest suppliers with around 4.5m customers.

Neither side has commented, but the deal could be worth more than £400m — a significant expansion for Telecom Plus. If completed, it could add millions of customers to the firm’s UK energy customers via its subscription-based model.

This kind of operational scaling could significantly boost its already strong earnings profile. And it is ultimately earnings growth that drives any firm’s dividends higher over time.

How do recent results look?

The firm’s full-year results to March 2025, released on 24 June, showed revenue easing back nearly 10% year on year to £1.838bn. But profitability improved: adjusted pre-tax profit rose 8.1% to £126.3m, while earnings per share climbed 9.4% to 119.2p.

Shareholders were rewarded with a 13.3% dividend increase to 94p, underlining management’s confidence in the firm’s long-term trajectory.

The half-year update published on 25 November painted a more mixed picture. Revenue grew 6.7% to £744.5m, but adjusted pre-tax profit fell 29.5% to £32.5m.

That said, customer numbers surged 19% to 1.39m, highlighting that Utility Warehouse’s growth engine remains firmly in motion.

Even with the profit dip, the board nudged the interim dividend higher by 2.7% to 38p per share.

A key risk to the firm remains energy market volatility that can depress earnings even if customer growth is strong.

However, analysts forecast that Telecom Plus’s earnings will grow by 10.3% a year to end-2028.

How much passive income can it generate?

I already have shares in another telecoms firm (BT) and other energy sector ones (BP, Shell, Harbour Energy). Buying another would unsettle the risk/reward balance of my portfolio.

But for investors without this problem, I think the firm is well worth considering.

Analysts forecast that the current 6.7% dividend yield will rise to 7.4% this year, 8% next year, and 8.6% in 2027.

Of course, yields can go up, down, or stay the same over time.

That said, a £20,000 stake at the 8.6% yield would allow investors to target £27,118 in dividends after 10 years. This also factors in ‘dividend compounding’ being used.

On the same basis, the dividend returns would jump to £241,525 after 30 years. This could give a total value for the holding of £261,525 (with the initial £20,000 included).

And this would hopefully give an annual passive income of £22,491 by that time!

It is a pity that my current holdings preclude me from investing here. However, Telecom Plus goes on my list as a replacement if any of my present holdings start to underperform.

The post Investors can target £22,491 in passive income from £20,000 in this FTSE dividend gem appeared first on The Motley Fool UK.

Of course, there’s always a balance between yield and dependability — the FTSE 100 tends to provide stable but modest payouts, while the FTSE 250 sometimes offers higher yields that are more fragile.

Every so often however, a handful of companies manage to deliver the best of both worlds. Here are five FTSE stocks with yields above 5% that have never missed a payment in 20 years: Admiral Group, BP, TP ICAP, Primary Health Properties, and Telecom Plus (LSE: TEP).

I already own shares in the first four and have covered them extensively. So in this piece, I’ll focus on the lesser-known fifth entry.

Telecom Plus

Telecom Plus is the holding company behind Utility Warehouse, which bundles broadband, mobile, energy and insurance into a single package. Founded in 1996 and headquartered in London, the company has quietly built a loyal customer base.

Over the past five years, the share price is up 37% — better than Admiral, TP ICAP and Primary Health Properties, though it trails BP’s 61% rise. For a mid-cap stock, that’s not a bad showing at all.

The dividend is the big draw here. At 5%, it’s comfortably above the FTSE 100 average. Coverage is thin but just about sufficient, with a payout ratio of 97.5% and cash dividend coverage of 1.5 times. That’s not perfect, but the company has proven resilient in keeping payments flowing.

Recent results were interesting. Revenue fell 9.9% year on year, mainly due to the reduction of the UK’s energy price cap. Yet earnings moved in the opposite direction, up 6.9%. Pre-tax profit for the year to March rose to £105.9m from £100m. 

So overall, its operational efficiency seems to be improving — the company’s net margin has almost doubled since 2022, from 2.7% to 4.2%.

A stock to consider?

There’s a lot that’s attractive about Telecom Plus but also a few concerns worth noting. Firstly, it isn’t screamingly cheap. The price-to-earnings growth (PEG) ratio sits at 2.8, which suggests the stock could be overvalued based on its earnings outlook. I think that’s worth keeping in mind for any investor looking to consider it.

Furthermore, its balance sheet raises some concerns. Debt has more than doubled in two years, climbing from £90m to £194m. Cash reserves meanwhile, have halved from £193m to £79m. Cash flow’s critical when it comes to dividends, and if debt keeps rising, a payout reduction can’t be ruled out.

Another risk is competition. Telecom Plus operates in crowded sectors where rivals are willing to fight hard on price. That could make growth difficult, particularly as household budgets tighten.

Still, while Telecom Plus may not have the deep roots of BP or the defensive strength of Admiral, its dividend record makes it a stock worth considering for income. Growth could be tough in a competitive market and debt’s worth watching closely. But for a company that hasn’t missed a payout in 20 years, it earns a place on my radar.

The post The ‘sleep easy’ portfolio? 5 FTSE dividend stocks that have never missed a payment in 20 years appeared first on The Motley Fool UK.

Otherwise, 2025 saw a record adjusted pre-tax profit of £126.3m. This marked an 8.1% year-on-year increase, while adjusted earnings per share rose 9.4% to 119.2p.

These results enabled the firm to increase its dividend by 13.3% to 94p per share – another record.

And a further record was broken in the number of customers now served by the business. Following a 15% surge over the year, this now stands at 1.163m. This rise included around 25,000 fixed-line/broadband customers acquired from TalkTalk.

Mobile services are just one of the Telecom Plus five main businesses, which all fall under the trading name ‘Utility Warehouse’. The others are energy, broadband, insurance, and cashback cards.

The company expects another 15% growth in customer numbers in 2026. It is targeting two million customers and more over the next three years. And it forecasts adjusted pre-tax profit to be within a range of £132m-£138m.

So how’s the share valuation looking?

There is a difference between a stock’s price and its value. The former is whatever the market will pay for it at any point, while the latter reflects underlying business fundamentals.

In my experience, being able to accurately quantify this price-value gap is the key to big long-term profits. This experience comprises several years as a senior investment banker and decades as a private investor.

The best method I have found to do this is discounted cash flow (DCF) analysis. This identifies where any stock price should be, derived from cash flow forecasts for the underlying business.

The DCF for Telecom Plus shows it is 31% undervalued at its current £18.57 price.

Therefore, its fair value is £26.91.

A risk here is that its earnings – which power any firm’s share price and dividends – will be affected by intense competition in its markets.

However, consensus analysts’ forecasts are that Telecom Plus’ earnings will grow by 8.3% a year to end fiscal-year 2028.

A high dividend set to go higher

The stock currently pays a dividend of 5.1%. However, analysts forecast this will rise to 5.6%, this year, 6.1% next year, and 6.5% in 2027.

 So, investors considering a holding of £11,000 (the average UK savings) in the stock would make £10,034 after 10 years.

This is based on an average 6.5% yield and on ‘dividend compounding’ being used.

After 30 years on the same basis, this would rise to £65,910. By that stage, the total value of the Telecom Plus holding would be worth £76,910.

And that would pay £4,999 a year in dividend income at that stage!

Will I buy the stock?

My overall portfolio is nicely balanced right now with a mix of top growth and dividend shares.

And I am of the ‘if it ain’t broke, don’t fix it’ view of investing.

However, if any of my growth or dividend shares started underperforming, Telecom Plus would be a leading contender to fill the spot.

The post Down 12%, this FTSE utilities provider is 31% under its ‘fair value’ and has a forecast dividend yield of 6.5%! appeared first on The Motley Fool UK.

After soaring in the Covid crisis, mid-cap shares have fallen out of favour. And over the past five years, the index has gained just 4%. That compares to 11% for its bigger London sibling, and goes against the long-term trend.

Over the decades, the FTSE 100 has made average total returns of around 7% per year, while the FTSE 250 has been closer to 11%.

It does look like UK investors have been averse to risk. But I think that’s changing, and I reckon the FTSE 250 might be hiding some explosive growth potential.

Telecoms growth

Telecom Plus (LSE: TEP) shares lost a couple of percent on results day on 18 June. And they’re way down from the highs they reached in 2022.

But the stock is still up 24% in the past five years. And I wonder if a new bull run might be on the cards.

The firm operates the Utility Warehouse brand… energy, phone, and broadband all in one. And forecasts show that combination generating growing earnings in the next few years.

We saw earnings per share (EPS) of 109p for the 2024 year, up 9.9% and ahead of forecasts. It looks like we might see 120p per share by 2026.

Growth valuation

And if that comes off, we could have a price-to-earnings (P/E) ratio of 15 by then. For a stock with growth potential, that could be cheap.

The stock’s past volatility does weigh against it, though, and it’s in a highly competitive market. The valuation, while it might be low for a growth stock, might look high compared to other utilities firms.

But it does seem like a very efficient operation to me, and I think that could set it ahead.

Biotech growth

PureTech Health (LSE: PRTC) has had a good 2024 so far. But its shares are way down from their 2021 heights, and down 8% in five years.

PureTech helped found schizophrenia treatment business Karuna. Then Bristol-Myers Squibb bought it for $14bn, which means PureTech’s initial $18.5m investment generated more than $1bn.

With FY results released in April, CEO Bharatt Chowrira spoke of “our track record of clinical success, which is six times the industry average“.

This isn’t a stock to invest in lightly, and I’d need to dig into specific sector risks before I’d consider it. And the lack of regular profits from the firm’s business model is a concern.

Fallen growth

I also look at stocks like Ocado, a previous growth stock favourite. Have sellers pushed the price too low? I think they might.

It’s changed places with partner Marks & Spencer, being demoted to the FTSE 250 while M&S now has a FTSE 100 seat.

The lack of profit is the big problem. But when we see profit on the horizon, I think that might just spur a new growth spell.

The post Here’s why these FTSE 250 shares could be set for explosive growth appeared first on The Motley Fool UK.

Since a peak in August 2021 at over 24,000 points, the mid-cap index has fallen well short of the FTSE 100. It lost 16%, while the main London index gained 17%.

The biggest stocks have beaten the smaller ones in terms of share price growth, and that goes against the trend.

Over the long term, the FTSE 100 has been growing at about 7% per year on average. The FTSE 250, meanwhile, has been managing close to 11%.

Ups and downs

Saying that, anyone investing for the long term should expect short-term pain sometimes — like that 16% drop in the smaller index since 2021. And both indexes fell hard in the 2020 stock market crash.

The big question is… will the stock market get back on trend, and is the FTSE 250 set for a new period of outperformance?

I think there’s a very good chance of it.

Saying that, it’s very possible that the outperformance was a quirk of the past few decades, and the two indexes could move in step in the coming years.

But why would growth stock investors buy smaller stocks if they don’t expect better growth than from mature blue chips?

Bullish on growth

That’s one reason I’m bullish about the FTSE 250 for the next deacade. When inflation settles and interest rates fall, I can see a resurgence in growth investing on the UK stock market.

So what possible growth stock bargains do I see out there? Plenty, and I’ll pick Telecom Plus (LSE: TEP) as an example.

The firm operates under the Utility Warehouse brand, and provides combined utilities including telecoms.

Over the past five years, the share price is up 25%. But it was a lot higher in 2022, and it went through a previous boom-and-bust cycle that peaked in 2014.

Growth stock volatility

Big ups and downs are part and parcel of investing in growth stocks. And I’d never buy one unless I knew I could handle them.

And, since launch, Telecom Plus shares are up 700% — while the index has gained 190%.

Forecasts put earnings per share (EPS) growth at 37% between 2023 and 2026. We’re waiting for 2024 results, but the latest update said that “adjusted pre-tax profits for FY24 are expected to be towards the upper end of market expectations“.

Those forecasts would drop the price-to-earnings (P/E) ratio to 16 by 2026. And I think most growth investors would see that as cheap.

Dividends too

Oh, and there are rising dividends too, with an expected 2024 yield of 4.4%.

Does this mean I’ll buy Telecom Plus? I don’t know yet, and I haven’t looked much beyond these few figures. If I do, I’ll consider the competitive risks of the utilities business and this stock’s past volatility.

But there are more like this in the FTSE 250, and I do think it shows how a lot of them just might be super cheap right now.

The post Here’s why I think FTSE 250 shares are dirt cheap now appeared first on The Motley Fool UK.