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I have some extra money I want to invest in UK stocks. Right now I’m going through the FTSE 250 stocks for the best cheap stocks money can buy.
Here are three on my radar today. They trade with a low price-earnings (P/E) ratio and take dividend yields north of the FTSE 250 average 3%.
Bank of Georgia Group
emerging markets company georgia bank It trades with a forward earnings multiple of 4.3 times and has a juicy dividend yield of 8.6%. This is the kind of irresistible general value I’m looking for.
Banks like this face hard times if the global economy continues to cool. In this type of environment, bad loans can skyrocket and it can be difficult to grow revenue.
That being said, I don’t think Bank of Georgia’s low valuation accurately reflects its enormous long-term earnings potential. Low penetration of financial products in Georgia and blistering GDP growth mean demand for its retail banking services is booming. Adjusted pretax earnings here shot up nearly 60% year-over-year in 2022.
The Renewables Infrastructure Group
I am considering increasing my current stake in a green energy inverter The Renewables Infrastructure Group, also. It trades with a forward P/E ratio of just 11.2 times and has a dividend yield of 5.5%.
The cost of building and maintaining wind and solar farms can be colossal. And this can take a big bite out of profits. But in the long run, I still expect gains to skyrocket as cleaner energy sources replace dirty fossil fuels.
I also like this REIT because of its increasing exposure to battery storage assets. The volatile nature of renewable energy generation means that the use of energy storage devices will also skyrocket in the coming decades.
STV Group
Traditional stations like the one in Scotland STV Group (LSE:STVG) are facing immense competition on several fronts. Streaming giants like Netflix and Amazon have eaten up their audience shares in recent years. They also face competition for views from other media, such as video games and the Internet.
However, I still think this FTSE 250 stock is packed with investment potential. I am primarily attracted to its success in the fast-growing streaming segment where the number of registered users of its STV Player the platform has just crossed the 5 m barrier. This was a full year ahead of schedule.
Viewing figures from free-to-air specialists like STV could also get a boost in the short term, as people cut back on paid subscriptions. An autumn study by ScotPulse showed that 64% of Scots have cut back or intend to reduce spending on video on demand (VOD) as the cost of living crisis rages on.
The company is trading with a P/E ratio of 8.8 times by 2023. It also has a dividend yield of 3.6%. I think these numbers make it a brilliant value stock to buy right now.
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