It fell 23% with a 6.5% yield, this FTSE 250 dividend gem seems undervalued.

There are many actions in the Ftse 250 with high yields and prices of the rock. Unfortunately, each of these two factors is the result of the other: as the price falls, the performance increases.

Of course, everyone likes high performance, especially if it's a bargain, but that is not always good. The price could continue to fall until the company declares bankruptcy. When looking for Dirt Barence actions with dividend potential, it is essential to evaluate the long -term viability of the company.

Actions on the Price Comparison Media Platform MONY GROUP (LSE: MONY) have dropped 23% in the last year. Recently I bought some of the shares when the price fell to a minimum of two years a few months ago. However, it has taken time to recover, so it still seems like a good offer.

The key driving factors behind my decision remain in place, a dividend yield of 6.5%, the potential for decent gain growth and the future return of capital (ROE) that is expected is about 40%.

The current price level of around 180p has proven to be an attractive point of purchase for investors both in 2014 and 2022. However, past performance is not indicative of future results. Therefore, I must also evaluate the company's market position, the demand for its services and managerial performance.

Economic challenges

Previously known as monysupermarket.com, the business renamed Mony Group last May. Now it operates as a specialist in money savings platforms led by technology, including several price comparison websites.

The company allows consumers to compare prices in a variety of products, including energy insurance, car, home and trip, mortgages, credit cards and loans. Its subsidiaries include MONYSUPERMARKET, Travel trip, Icelolly, Decision technology, Quidcoand Moneysaveingexpert.

Although a market leader is considered, it still operates in a highly competitive industry. The increase of several other outfits that compete for the market share is a continuous risk by pressing the company. The regulatory changes in the United Kingdom's financial services sector are another concern that could affect the operations and profitability of MONY.

However, the most likely culprit behind its recent losses is inflation. Consumer spending decreased significantly for 2022 and 2023 as the economy suffered a recession. Many companies that use price comparison services have suffered losses and subsequently, so have the places themselves.

Long -term potential

Despite the risks mentioned above, I see a good long -term growth potential in Mony Group.

We have already experienced the first trimming of interest rates this year and they are expected more, with the aim of helping to reduce inflation. The benefits of a revitalized economy and an increase in consumer spending would be a blessing for the price comparison industry.

If so, MONY is in good condition to enjoy renewed growth. The price of the shares is currently quoted only 13 times, well below the United Kingdom market average.

With the earning forecast to grow 8.6% a year, that figure could decrease even more. It is already 51% below the fair value, according to anticipated cash flows, and it is forecast to increase an average of 42% in the next 12 months.

It seems to be a well -established business that operates in a high growth industry and quotes below the value due to external factors.

I am as optimistic as always about its long -term potential and I think it is worth considering as part of a portfolio centered on income.