[ad_1] Image source: Getty Images M&G (LSE: MNG) is one of the FTSE 100’s most compelling income shares, in my view. Its dividend yield is already one of the index’s highest, and its price looks extremely undervalued. Moreover, strong earnings growth forecasts look set to drive both even higher. That combination of income today and capital gains tomorrow makes M&G a rare dual‑engine investment, in my book. But how much of this opportunity is the market still overlooking? Powerful earnings growth driver The engine for any firm’s share price and dividends is growth in earnings. A risk to investment manager…
Author: user
[ad_1] Image source: Getty Images A Stocks and Shares ISA can be great for private investors. But a few things could make one an even more attractive proposition. In the November Budget, Chancellor Rachel Reeves slashed the Cash ISA limit by £8,000 to £12,000. It won’t happen until April 2027, and it only affects those under 66. But the idea is to encourage investors to consider stocks and shares instead. A Cash ISA can be great for stashing emergency and short-term cash. And also for those who don’t want any stock market risk. But over the long term, UK shares…
[ad_1] Image source: Getty Images UK income investors are spoilt for choice right now, with dozens of UK dividend shares yielding more than 7%. The challenge is working out which payouts might actually prosper if interest rates start to fall in 2026 rather than collapse at the first sign of trouble. After one of the sharpest tightening cycles in decades, UK base rates started to drop again in 2025. Cash savings and gilts have offered decent returns this year, but income seekers may start to see dividends as more preferable from next year. At the same time, market pessimism has…
[ad_1] Image source: Getty Images Last week, UK money guru Martin Lewis gave an eye-opening presentation on investing in the stock market. In it, he showed how over the last 10 years, returns from stocks have trounced the returns from cash savings. Now, obviously that in itself was a big takeaway (the audience gasped when Lewis showed how well stocks have done relative to cash). But there was another takeaway that’s worth highlighting and could help Britons generate more wealth over the long term. Different markets have generated different returns When showing the performance of stocks over the last decade,…
[ad_1] Image source: Getty Images Premium content from Motley Fool Share Advisor UK Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios. “Best Buys Now” Pick #1: BAE Systems (LSE: BA.) BAE Systems expects operating profit to grow by up to 11% this year, driven by sustained demand, including recent orders from Turkey for Typhoon aircraft and from Norway for Type 26 frigates. The company has secured more than £27 billion in orders so far this year,…
[ad_1] Image source: Getty Images A few years ago, I thought the game was up for British American Tobacco (LSE: BATS) shares. Smoking was so over. During my lifetime, visitors had gone from merrily puffing away inside my parents’ living room, to standing on the doorstep for a drag, to not smoking at all. But just look at the FTSE 100 giant today. Its shares have soared 44% in one year, and 86% over two. Despite that tremendous growth, the trailing yield is still a hefty 5.5%, as dividends continue to grow. How come Big Tobacco is in such rude…
[ad_1] Image source: Getty Images Tesco’s (LSE: TSCO) share price has the reputation of a defensive stalwart — steady, predictable, even a little dull. But beneath the surface, Britain’s biggest grocer’s fundamentals tell a richer story than its valuation suggests. So where should the stock be priced, based on its resilient margins, high cash generation and market share gains? Solid recent results Tesco’s latest results provide the clearest lens yet on that disconnect, featuring steady top-line growth, resilient margins, and cash generation. The 2 October H1 fiscal-year 2025/26 numbers saw sales rise to £33.05bn, up 5.1% year on year. Adjusted…
[ad_1] Image source: Getty Images FTSE 100 defence manufacturer BAE Systems (LSE: BA) had a cracking 2025, its shares rising 40% over the last 12 months. Rolls-Royce Holdings (LSE: RR), which combines defence with civil aerospace and power systems, did even better, surging 90%. Both are established UK blue chips, with market values nudging £50bn and £100bn respectively. Yet they were eclipsed by relative minnow Babcock International Group (LSE: BAB), whose shares have rocketed 320% in a single year. It’s now worth £6bn. That caps a remarkable five-year run for the sector. BAE Systems is up 238%, Rolls-Royce has soared 837%, and Babcock has climbed 320%.…
[ad_1] Image source: Getty Images The BAE Systems‘ (LSE: BA) share price has been in fine fettle in 2025. Those already backing the stock will be hoping for a similar performance next year. But might they be asking for too much? Earnings explosion! I guess the defence giant’s performance isn’t all that surprising considering the ongoing geo-political climate. The Russia-Ukraine war rumbles on, pushing governments of Western countries to spend like there’s no tomorrow on advanced weapons and platforms to protect themselves. Naturally, this has done no harm to BAE’s coffers. The FTSE 100 member has been announcing new deals…
[ad_1] Image source: Getty Images Lloyds Banking Group (LSE:LLOY) shares have been on an incredible rally in recent years. Over the past year alone, the Lloyds’ share price is up 70%. At the highest level in over a decade, investors have been cheering it all the way. However, I have growing concerns about why this can’t be sustained forever. Let me explain. Lower net interest margin The Bank of England committee is likely to cut interest rates at the meeting on Thursday (18 December). More than that, it’s likely we’ll see at least two more rate reductions in 2026. This…