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These UK income stocks look too cheap to pass up at current prices. Should I buy more of them for my investment portfolio today?
taylor wimpey
House builders like it taylor wimpey (LSE:TW) continue to offer excellent overall value. Well, at least that’s how it looks on paper.
this particular FTSE 100 The shares are trading with a forward price-earnings (P/E) ratio of 11.7 times. Meanwhile, its dividend yield for 2023 registers a mighty 7.3%.
By comparison, the broader FTSE index trades with a forward looking P/E ratio of 14 times and has a dividend yield of 4%.
Having said that, I’m not tempted to buy any more Taylor Wimpey shares yet. I think the passive income they provide could disappoint in the short term due to the difficulties in the UK property market. Frontline Rival Barratt developments on Wednesday it cut its interim dividend by 9%.
But I will look to add to my holdings if additional green shoots emerge for the home building industry. In yesterday’s semi-annual report, Barratt said that “bookings have shown a modest increase since early January” thanks to an improvement in mortgage rates and increased optimism regarding future interest rates and energy costs.
I think the long-term outlook for UK homebuilders remains strong. Demand for new homes will inevitably increase as the nation’s population grows. So Taylor Wimpey stock remains on my radar, and especially at current prices.
needle health
I would be happy to buy more needle health (LSE:SPI) stocks for my investment portfolio, however. And I will look to increase my share if I have money to spare.
This stock of revenue is on the rise as NHS wait times soar and demand for private healthcare soars.
The latest official data showed that 7.2 million people are now waiting for treatment at the free health service. The number could remain elevated for some time as the staffing shortage worsens as well.
A poll by the Medical Defense Union indicates that 40% of doctors and dentists plan to leave the NHS by 2028. This could see even more patients coming through the doors of businesses like Spire.
However, I don’t think this great opportunity is reflected in Spire’s current share price. He FTSE 250 The business, which reported a 34% increase in the number of self-pay patients in the first half of 2022, is trading on a price-to-earnings (PEG) growth ratio of just 0.2.
This is well below the benchmark of 1 that indicates a stock is undervalued.
Granted, the dividend yields on the hospital group aren’t that impressive. By 2023, this stands at just 1.3%. But Spire could be a great buy for investors seeking strong and sustained dividend growth following pandemic-related headwinds.
The annual payment is expected to increase 88% in 2023 and a further 24% next year. Further NHS investment could hurt long-term earnings growth at Spire. But right now things are looking positive for the healthcare giant.
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