Business & Investment

Two tattered FTSE dividend stocks to buy in July!

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I bought some stocks during the recent stock market downturn.One of them was a house builder persimmon (LSE: PSN)FTSE stocks that offer incredible value for money.

The stock price of persimmon has fallen since it was bought, but as a long-term investor, it doesn’t really bother me. I’m sure it’s jumping from recent levels, and I still believe it proves a great bargain for me.

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These fresh waterfalls actually mean that homebuilders offer even better value than when I bought them. Its forward dividend yield has risen to a stunning 13%.Compare it with FTSE 100 Average 3.9%.

In addition to this, the correspondence of persimmon Price-earnings ratio It fell to ultra-low 7.3 times.

HOuse prices continue to skyrocket

The housing market faces some dangers as the Bank of England raises interest rates and puts pressure on affordability for homeowners. In fact, he said he “witnessed” nationwide.Temporary signs of slowdown“In June.

However, the latest data from building-and-loan associations also show that house prices continue to rise at a stratospheric pace. Average residential properties were £ 271,613 last month, up 10.7% year-on-year.

I believe that demand for new homes will continue to outpace supply, despite rising interest rates and the crisis in living costs. As a result, the market remains very strong. Remember that interest rates have historically remained low and lenders will continue to act to beat the swaying homebuyers.

For example, just this week, Halifax announced that it would reduce the minimum deposit requirement for new properties to 5%. The UK mortgage market is very competitive and other lenders may be aggressive in keeping the UK housing market alive.

Indeed, the risks faced by persimmons are higher than they were a year ago. But the market outlook remains pretty bright with everything considered. On top of that, I think the solid valuation of this FTSE company does not just reflect the threat posed by rising interest rates.

Another cheap FTSE stock

Let’s go Glencoreof (LSE: GLEN) Another great FTSE 100 dividend stock you can buy right now. Recent weaknesses in stock prices have pushed the forward yield to a strong 13%.

Meanwhile, the price-earnings ratio of commodity producers and traders in 2022 has fallen by just 3.8 times.

The danger of stocks like Glencore is that demand for their products can decline as the global economy weakens.Indeed, recorded copper prices Their worst quarter fall 11 years from April to June as consumption has eased.

bright future

At the same time, the long-term outlook for commodity demand remains solid. As the next “commodity super cycle” begins, the use of industrial metals and construction materials tends to increase significantly.

Spending in areas such as household appliances, housing, green technology such as electric vehicles, and infrastructure can grow rapidly over the next decade or so. And the world’s largest mining companies like Glencore also play an important role in achieving this. I don’t think the company’s ultra-low rating reflects this.

We expect the stock price of this FTSE company to recover significantly from its current level.



Two tattered FTSE dividend stocks to buy in July!

https://www.fool.co.uk/2022/07/02/2-battered-ftse-dividend-stocks-to-buy-in-july/ Two tattered FTSE dividend stocks to buy in July!

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