Any income stock offering an above-average yield always grabs my attention. This is particularly true for one company in the FTSE 250 right now.

The question, however, is whether its dividend stream is sufficient to outweigh the risks involved.

Fallen star

Victrex (LSE: VCT) might not be on the tip of most retail investors’ tongues today. However, there was a time when the producer of high-performance PEEK polymers was extremely popular. Five years ago, the stock was changing hands for over 2,600p a pop.

Since then, however, it’s been an absolute dog for holders, falling no less than 73% in value (at the time of writing this on 17 July).

Reasons for this cataclysmic collapse include a fall in demand from several of the firm’s key customers in the automotive and industrial sectors, partly in response to ongoing economic uncertainty. Elsewhere, the higher-margin Medical division isn’t delivering the growth that had been hoped for. Operational problems persist at its factory in China as well.

Have we seen the bottom?

Despite such a poor run of form, there are signs that things might just be stabilising.

This month’s trading statement revealed that group revenues were up 18% in Q3. As a result, management elected to maintain its previous full-year guidance. Underlying pre-tax profit should come in somewhere in the range of £42m to £44m.

While this news is unlikely to have popped many champagne corks, Victrex shares are up 14% in the last month, easily outpacing the FTSE 250.

And then there’s the dividends. Right now, the forecast yield stands at a chunky 8%. By contrast, the index yields ‘just’ 3.1%. So, it might be argued that new investors would be compensated well for taking on the risk of holding the stock.

Looking under the bonnet

Even so, it’s important to bear a couple of things in mind.

First, the total dividend hasn’t increased for several years now. That’s not really a surprise considering the downturn in trading. However, I tend to regard this as a pretty significant red flag when it comes to looking for ways of generating passive income from the stock market. It’s not just that a stagnant dividend points to a business treading water; it means that shareholders are more exposed to the eroding effects of inflation.

On a related note, Victrex’s payouts haven’t been covered by profit since 2023. Clearly, this can’t go on indefinitely. Without a sizeable reversal in trading, I wouldn’t be surprised if dividends were eventually slashed.

My verdict on this income stock

For those with strong stomachs and long time horizons, I can see the attraction of Victrex shares. New(ish) CEO James Routh’s plan to restructure the business by simplifying its portfolio and cutting headcount seems sensible. Throw in a fairly robust balance sheet and a recovery in the share price is not beyond the realms of possibility.

But the issues highlighted above, coupled with more competition and the possibility of higher costs, lead me to think the road ahead will be long and tough.

If income is the goal, the precarious state of Victrex’s dividends suggests there are far better opportunities to think about elsewhere.

What income stock do we like better than Victrex Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

Paul Summers has no position in any of the shares mentioned

The post Down 73% but yielding 8%! Is this monster income stock worth considering? appeared first on The Twelfth Magpie.

More reading

• £20k invested in a Stocks and Shares ISA 5 years ago is already worth this much
• This 9.1%-yielding FTSE 250 share’s soared this week. Can the dividend last?

After shooting the lights out in its first few days as a listed company, SpaceX (NASDAQ: SPCX) shares have now fallen below their IPO price of $150.

I wouldn’t be surprised if this sort of volatility stuck around. For all the excitement that Elon Musk’s business inspires, one can’t ignore the fact that it also fails to deliver the very thing most investors tend to cherish the most: profit.

I prefer to back companies with proven track records on this front.

Fortunately, one doesn’t need to look all that hard to find some in the UK market.

Less hype, better results

An example is FTSE 100 member Computacenter (LSE: CCC).

Back in May, the technology services provider announced that higher corporate spending on IT, particularly in North America, had led to strong performance in the first quarter of 2026. This was followed on 9 July by a statement that first-half adjusted pre-tax profit would be about double that of the £81.5m achieved over the same six months in 2025.

In addition, the company now expects its full-year profit to come in comfortably ahead of market expectations.

Such talk was always likely to go down well with the market. However, Computacenter’s value has been motoring upwards for a while, no doubt helped by its involvement in the AI boom. Anyone investing one year ago would have doubled their money, in addition to receiving dividends.

If the firm somehow manages to eclipse its own projections in 2026, there could be even more gains ahead.

Already priced in?

Of course, there’s always a chance that earnings suffer an unexpected blow and/or investor expectations overtake reality. Supply chains could get interrupted or its market could become even more competitive.

All this needs to be kept in mind given Computacenter’s valuation. The forecast price-to-earnings (P/E) ratio now stands at 22. That’s not excessive but it does suggest that the price is fairly up-to-date with events. It could also mean that the £4.7bn cap could suffer more than most in the event of a sudden downturn in the general market. Such are the risks that come with owning growth stocks.

Even in the absence of a crash or correction, operating margins are extremely low. Put another way, a slight rise in costs can have a meaningful impact on performance. If this were to persist, one suspects the share price will suffer.

Will I ever buy SpaceX shares?

Despite these concerns, I’m far more interested in Computacenter than SpaceX as a potential investment.

It’s not that I can’t find anything of value in the latter. Its satellite division, Starlink, is certainly proving its salt.

Even so, the absurd valuation being slapped on the company as a whole, supported by speculative claims about commercial asteroid mining and space tourism, leads me to think there are better opportunities elsewhere.

I grudgingly accept that I will inevitably own a slice of the company as and when the index funds that I hold are required to buy in.

But buy the shares directly? I’d rather keep my feet on the ground.

Should you invest £5,000 in Computacenter Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Computacenter Plc made the list?

Paul Summers has no position in any of the shares mentioned.

The post Buy the dip on SpaceX shares? I’m considering this FTSE 100 growth stock instead! appeared first on The Twelfth Magpie.

More reading

• Down 30% in 1 month! Is the SpaceX share price starting to implode?
• Down 45%, is SpaceX stock a ticking timebomb?
• Here’s what £5,000 put into SpaceX stock a month ago is worth now!
• How to start turning £250 a month in UK shares into a potential £25,988 second income
• Now below the offer price of $135 but with an $800 target, is it time to put more SpaceX shares in my ISA?

If you think the FTSE 100‘s great performance means there are no cheap dividend shares worth considering today, think again. I see one in particular that warrants closer inspection.

FTSE 100 laggard

Granted, 2026 hasn’t been particularly kind to housebuilder Persimmon (LSE: PSN) or its investors. While the index has delivered a near-5% gain year-to-date, the company’s value has plummeted by almost a quarter.

The longer-term performance is even worse. Anyone buying in mid-2021 would now be looking at a paper loss of around 65%. As I type, the FTSE 100’s up 46% over the same period.

To some extent, this terrible ‘return’ isn’t surprising. The exceptionally low-interest-rate environment that buyers once enjoyed came to an end when the Bank of England was forced to tackle post-pandemic inflation. As rates went as high as 5.25%, just making ends meet became the number-one objective for most households.

Persimmon was always likely to suffer. Sure, rates have come down since. But it would be a stretch to say the housing market has been firing on all cylinders or that consumer confidence has returned.

Building costs also remain elevated and could push even higher. Worryingly, operating margins at the business in 2025 were already around half what they were in 2020.

Is Persimmon actually a bargain?

If all this makes it sound like an investment in Persimmon today would be silly, it’s worth thinking about the contrarian view.

Today, the stock trades on a price-to-earnings (P/E) ratio of 10. This makes it the cheapest among its peers, albeit by a slight margin. It’s also low relative to UK shares in general. Put another way, some of the aforementioned risks are already reflected in the price.

Then there’s the passive income on offer. A yield of 6% makes it among the most generous in the FTSE 100. For context, a £5,000 investment would generate £300 for the year.

Other attractions are the company’s sizeable land bank. This is something that will surely become more valuable as time goes on, providing long-term protection from inflation.

Let’s also not forget that the demand for new housing continues to outstrip supply. Political pressure to increase construction isn’t likely to go away either.

My verdict

There is, of course, a chance that trading will become more difficult in the months ahead as the full consequences of the Iran-US conflict become clearer. In such a situation, we could see another cut to the cash dished out to investors (payouts were slashed by 75% in 2022). So it’s important not to get too fixated on that above-average yield.

Half-year results in August should provide some guidance on the near-term outlook for dividends. On an optimistic note, Persimmon’s balance sheet looks pretty robust for a business in a cyclical sector.

But since we can’t know if/when the housing market will get its mojo back, spreading cash around the market rather than backing one or two horses still looks the prudent move.

The long-term tailwinds suggest this might be one stock to consider tucking away for a few years. However, I think I’ll wait to see what the next set of numbers looks like.

Should you invest £5,000 in Persimmon Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Persimmon Plc made the list?

Paul Summers has no position in any of the shares mentioned

The post Down 65% but yielding 6%! Is this FTSE 100 dividend stock an unmissable bargain? appeared first on The Twelfth Magpie.

More reading

• Down 63% and yielding 6.3%! Is this FTSE 100 share a brilliant bargain?
• This 5.5%-yielding income stock’s at a 13-year low and cheap to-boot! Time to consider buying?
• A 6.7% forecast yield and 53% below ‘fair value’! 1 stunning FTSE income stock for investors to consider today?
• How much do you need in an ISA to target a £2,066 monthly passive income in 2066

The rise and fall of Greggs (LSE: GRG) shares has been one of the most captivating recent stories from the FTSE 250, at least in my opinion. The much-loved brand saw its value roughly halve between September 2024 and September 2025.

To make matters worse, the price has gone pretty much nowhere since. Anyone taking a stake at the beginning of 2026 and checking their portfolio for the first time today won’t have missed a thing.

Why is this so-called ‘bargain stock’ struggling to get its mojo back?

Multiple headwinds

One factor that may be keeping buyers away is the number of short sellers circling the ‘food on the go’ retailer. As I type, Greggs is the fourth most ‘popular’ firm in the entire market, at least on this measure. Put another way, a significant minority of traders are actively betting that the share price will remain under pressure.

Why might they be proved right? Well, the worries that caused the share price to collapse are still very much here. When just paying the bills is hard enough, consumer demand in general will be impacted and high streets will see lower footfall. Factor in higher business costs (and even the effect of weight-loss drugs) and the baker’s lack of positive momentum starts to make a bit more sense.

Things could get worse too, especially if management’s plan to continue opening new stores backfires and Greggs begins to cannibalise its own sales.

And then there’s the weather. Another heat wave would be far from ideal. After all, who wants to munch on a boiling hot pasty when they’re already struggling to stay cool?

Based on all this, Greggs shares might not be undervalued at all.

It’s not all doom and gloom

Then again, one could also argue that at least a proportion of these headwinds are temporary. A boiling hot summer — if we actually get one — will ultimately be replaced by a chilly winter. As tough as the cost-of-living crisis is for all retailers, I’d also much rather be owning one that was focused on offering value over luxury.

The suggestion that we’re already at ‘peak Greggs’ can also be contested. Far from just occupying units on the high street, it’s been tapping into new growth opportunities and expanding into travel locations, such as airports.

Even though debt has been rising, the firm’s finances don’t look unduly stressed either. Although they can never be guaranteed, this makes it likely that holders will continue to receive dividends. Right now, the yield stands at a very decent 4%.

My verdict on Greggs shares

Taking these points into account, the current price-to-earnings (P/E) ratio of 14 for 2026 might prove a steal eventually. But that last word was picked deliberately.

Half-year numbers from the Newcastle-based business are due at the end of July. Personally, I’m not expecting anything too special. May’s trading update did show a slight improvement in sales growth. But it seems that the market is looking for a lot more if it’s to get excited about Greggs again, especially as higher cost inflation in 2027 is anticipated if the Middle East conflict continues. And it doesn’t look like a peace deal is about to stick any time soon.

I’m still not quite ready to get involved here.

Should you invest £5,000 in Greggs Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Greggs Plc made the list?

Paul Summers has no position in any of the shares mentioned.

The post Are Greggs shares really undervalued? appeared first on The Twelfth Magpie.

More reading

• What builds wealth faster: an ISA or a SIPP?
• Thank goodness I didn’t invest £1,000 in Greggs shares 3 years ago
• Greggs shares have been a disaster for me! So why don’t I sell?
• Drip feeding £5 a day into UK shares, here’s how long it would take to build a £100,000 portfolio from zero
• If you’d invested £10,000 in Greggs shares in January 2025, here’s what you’d have lost

It’s an understatement to say that holders of BAE (LSE: BA.) shares have benefited from a very volatile last few years in geopolitics. The seemingly never-ending conflict between Russia and Ukraine has pushed governments – particularly those in Europe – to increase defence spending. Donald Trump’s decision to enter a war with Iran has served to boost demand further.

As one of the biggest players in its sector, it was only natural that people looked to take advantage of these ongoing tensions. And, seen purely from an investment perspective, what a great move that would have been.

Despite this, we’ve seen a significant pullback in the last few months. From the record high hit back in mid-March, the share price has dropped around 17%. That sort of momentum is hardly insignificant. So, what gives?

Why are investors dumping BAE shares?

Based on its most recent announcements, it has nothing to do with how the business is performing.

Back in mid-February, BAE announced that operating profit for 2025 had come in at £3.3bn against £3bn the year before. Management also forecast that this would rise by 9%-11% in 2026 — a slight improvement on previous guidance. CEO Charles Woodburn’s words were particularly telling:

In a new era of defence spending, driven by escalating security challenges, we’re well positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future.

This bullishness was further underlined when, in last month’s trading update, the company announced that it was on track to meet its earnings growth targets.

Taking the above into account, I reckon we might be witnessing some profit-taking among holders. There’s also the possibility that a few were anticipating another earnings upgrade in May. Such is the risk that comes from backing high-flying stocks.

Sure, there’s a chance that this negative momentum might continue. A merciful ending to either or both of the aforementioned conflicts could damage sentiment towards the stock, at least temporarily.

Is this company undervalued?

Let’s be clear: BAE shares still aren’t cheap, at least relative to the market. Even after taking the recent drop into account, we’re still looking at a forecast price-to-earnings (P/E) ratio of 24. Put another way, a good dollop of the very positive outlook appears to be priced in.

Then again, this valuation is actually quite reasonable among the £59bn market cap company’s peer group. Fellow FTSE 100 member Rolls-Royce boasts a huge Defence division that, among other things, supplies engines for military transport, combat aircraft, and helicopters. Its forecast P/E for 2026 stands at 34.

On this basis, BAE might actually be something of a steal.

My view

As concerning as the recent movement has been for holders, I continue to believe that this company’s astonishing order backlog means it will continue delivering for investors over the long term. And that really is the only time perspective Magpies such as me focus on. Think years and, ideally, decades; not weeks or a few months.

Given that we can always rely on there being bad actors in this world, I am strongly considering taking advantage of what appears to be a natural pullback in BAE shares rather than a frantic dash for safety.

Should you invest £5,000 in BAE Systems right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BAE Systems made the list?

Paul Summers has no position in any of the shares mentioned.

The post BAE shares are falling: opportunity or warning? appeared first on The Twelfth Magpie.

More reading

• By 2027, the BAE Systems share price could turn £5,000 into…
• By mid-2027, analysts expect £5,000 in BAE Systems shares to be worth…
• By July 2027, BAE Systems shares could turn £9,999 into…
• Should I buy more BAE Systems shares under 1,850p?
• 2 of my favourite FTSE 100 stocks are flying this week! Time to buy more?

You probably don’t need me to tell you that many FTSE stocks are performing rather well at the moment. Indeed, some have surged to 52-week highs.

Today, I’m homing in on two examples and asking if this great run of form can continue.

Beating expectations

Shares in Bloomsbury Publishing (LSE: BMY) are firmly in demand. They’re up nearly 40% in 2026 alone.

This isn’t a complete surprise. Full-year revenue of £325.9m might have been down compared to the previous year (due to “exceptional sales” of books by Sarah J. Maas in the latter), but it still beat analyst expectations. The firm’s Academic and Professional division has also been performing well, thanks in part to AI licensing.

Naturally, there is no guarantee this will continue. Literary trends come and go. Popular authors take time to write and earnings will fluctuate. This helps to explain why holders didn’t have such an easy ride in 2025.

But personally, I’m optimistic about the outlook.

I’m bullish on Bloomsbury

Changing hands at a forecast price-to-earnings (P/E) ratio of 14, Bloomsbury isn’t the screaming bargain it was a few months ago. But it still doesn’t look overvalued when we consider what’s coming up later this year.

The forthcoming Harry Potter television series will likely bring new generations to read the books. Pre-orders of the next two titles from the aforementioned Sarah J. Maas have also been described as “exceptional” (that word again!). On top of this, the balance sheet looks robust, and the business has grown its dividend every year since 1994.

So, no, I wouldn’t be surprised if recent form continues. Interestingly, Deutsche Bank has a price target of 760p on the stock. That’s 16% above where it is as I type (29 May).

Regardless of whether it gets there in 2026 or not, I still think this stock is worth considering for the long term.

Another FTSE winner

Also hitting a 52-week high is FTSE 250 member Computacenter (LSE: CCC). The independent technology and services provider’s value has climbed more than 50% in 2026 alone.

Catalysts behind this firm’s purple patch include increased corporate spending on IT and strong growth in North America. April’s trading update contained all the magic words that investors look for:

The Group delivered a strong performance during the first quarter, which was significantly ahead of the prior year and well above our expectations.

But it wasn’t just this that got the market excited. Due to a strong order backlog, Computacenter stated that it expected “a much stronger performance in the first half of the year than previously anticipated“.

But is it overvalued?

Now, at least some of the above will be priced in. After all, the shares already trade at a forecast P/E of 21. That’s not ridiculously expensive, but it does increase the pressure on management to continue executing to a high standard. It’s also worth noting that margins in this line of work have been consistently very low, at least relative to other companies in the tech space.

Even so, momentum is a powerful beast. With the AI story showing no signs of slowing down just yet, I suspect we could see more buyers pile in before half-year results arrive in early September.

Should you invest £5,000 in Bloomsbury Publishing Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bloomsbury Publishing Plc made the list?

Paul Summers has no position in any of the shares mentioned.

The post At 52-week highs, here’s why these FTSE stocks might continue surging appeared first on The Twelfth Magpie.

More reading

• How to start turning £250 a month in UK shares into a potential £25,988 second income
• Soaring 100% since July 2025, could this little-known FTSE 100 stock be a hidden gem?
• Buy the dip on SpaceX shares? I’m considering this FTSE 100 growth stock instead!

I don’t know anyone who would turn down the idea of earning passive income, especially in 2026. What could be better than generating extra cash to help keep the wolves from the door?

Fortunately, the stock market provides such an opportunity, even if it involves more risk than throwing money into a cash savings account. All an investor essentially needs to do is buy a stock, sit back, and let the business and its managers work for them.

From little acorns…

When we talk about passive income from shares, we mean dividends. These are a proportion of the profit made by a company and distributed back to its owners (us investors), usually twice a year.

In the early days of investing, this might amount to nothing more than a few pounds. However, over time (and with a bit of luck), they should increase in value. This is especially likely if the owner reinvests what they get back into the stock. The more shares they own, the more income they should receive, at least in theory.

Importantly, not all stocks pay dividends. Moreover, not all those that do are created equal. Plenty of companies run into trouble for various reasons and are forced to reduce or even cut their cash returns completely.

But there are also a good number of UK-based firms that have shown they can consistently deliver.

Passive income powerhouse

One example, at least in my view, is financial services titan Aviva (LSE: AV). Its forecast dividend yield for 2026 stands at 6.6%, as I type.

Using this as a guide, a £10,000 investment in the company might deliver dividends of around £660. This isn’t an exact science because share prices are always moving. When the share price goes up, the yield goes down and vice versa, all other things remaining equal.

But Aviva’s income credentials go beyond that monster yield. In recent years, management’s record of increasing its total dividend has been solid.

This isn’t surprising given the progress CEO Amanda Blanc has made in streamlining the business to become more focused on its home market. Operating profit jumped 25% to £2.2bn in 2025, helping the insurer to hit its 2026 targets a year early.

A word of warning

As enticing as this all looks, dividends are never guaranteed, regardless of which stock we’re talking about. Like all companies operating in the financial sector, Aviva’s outlook is always tied to the health of the economy. When the next crisis arrives (and we can be reasonably confident that one eventually will), things could get tough.

This is precisely why I said ‘forecast yield’ a little earlier. This simply means that analysts have done their sums and made a prediction on how much might be distributed to holders for every share they own as things stand. It’s not nailed on.

But this, of course, underlines why we’re such fans of spreading money around the market at The Twelfth Magpie. Owning several income-generating stocks still doesn’t guarantee anything. But it reduces the risk that comes from only backing one horse (or business).

So yes, I reckon Aviva could act as a great starting point for a new investor to consider. It’s far from the only option though.

Should you invest £5,000 in Aviva Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Aviva Plc made the list?

Paul Summers has no position in any of the shares mentioned

The post £10,000 in this FTSE 100 stock buys £660 in passive income this year appeared first on The Twelfth Magpie.

More reading

• How you can invest £1,000 in UK dividend shares and start generating passive income right now
• How many Aviva shares would I need for a £5,000 second income?
• How much second income could a £20k Stocks and Shares ISA started now earn per year?
• £12k invested in a Stocks and Shares ISA 10 years ago is now worth…
• I’m looking for the FTSE 100’s best value stocks to buy in July. Have I found them?

Since we’re long-term investors here at the Twelfth Magpie, it makes sense to look at which FTSE 100 stocks might be solid options for growing wealth in the next decade (and beyond).

Today, I’m picking out three favourites to consider buying in June and holding for as long as possible.

Top performer

Shares in mining giant Rio Tinto (LSE: RIO) have been on fire in 2026, partly thanks to soaring metal prices. Anyone snapping up the stock in January will have seen their stake grow by around 30%. This is before we’ve even factored in a 192p dividend paid in April.

At the time of writing, the main index has delivered a little less than 5%.

But it’s the long-term potential I like here. The shift to cleaner energy sources means that metals such as copper, lithium, and aluminium should be in huge demand going forward. Rio is a major player in all three.

Sure, this company has no control over the price of what it digs up, and, yes, commodity markets are highly dependent on the state of the global economy (and China in particular). If history is any guide, the average investor should expect at least a few challenging periods ahead.

Even so, I think there’s an argument for saying that today’s price may look like a bargain in a few years.

Can this FTSE 100 winner keep soaring?

Another FTSE 100 stock that I think could do very well is BAE Systems (LSE: BA.). That might seem like an odd pick. After all, isn’t investing all about ‘buying low and selling high’? Ideally, yes. However, just because a company’s share price has shot up in recent times — and BAE’s most definitely has — doesn’t mean this won’t continue.

Existing investors have clearly ‘benefited’ from the Ukraine-Russia and US-Iran conflicts. A merciful end to these wars could see some sell up. The shares already trade at a frothy price-to-earnings (P/E) ratio of 24.

But this might be a mistake. Governments around Europe are increasing their defence spending on things like submarines and protection against cyber attacks. Contracts for this kind of work last for years, giving great earnings visibility for BAE.

The fact that some/a lot of this is already baked into the price means that gains could be more muted going forward. But the current backdrop suggests returns might still outpace the index.

Monster dividends

Since spreading money around different sorts of businesses is a way of mitigating (but not eliminating) risk, I’m also flagging financial services specialist Legal & General (LSE: LGEN).

Now, in sharp contrast to the other stocks mentioned here, L&G has been something of a disappointment. The share price is actually lower now than five years ago!

Still, those already invested have received a lovely dividend stream. Today, the forecast yield stands at a monster 8.2% for 2026. That’s easily the highest among the biggest companies in the UK stock market.

There’s no guarantee those cash distributions will remain at this level. However, I reckon this company’s exposure to major demographic trends, such as an ageing population needing to secure their financial futures, should allow it to begin moving up the gears in the years ahead.

Should you invest £5,000 in BAE Systems right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BAE Systems made the list?

Paul Summers has no position in any of the shares mentioned.

The post 3 FTSE 100 shares to consider buying in June and holding for a decade appeared first on The Twelfth Magpie.

More reading

• By 2027, the BAE Systems share price could turn £5,000 into…
• How much do you need in an ISA to earn £2,000 monthly passive income?
• By mid-2027, analysts expect £5,000 in BAE Systems shares to be worth…
• By July 2027, BAE Systems shares could turn £9,999 into…
• Can someone put money in the stock market, quit work, and live off the passive income instead?

Based on the latest data from investment platform AJ Bell, Taylor Wimpey (LSE: TW) shares are very popular with UK investors right now. Indeed, the housebuilder is currently second in its list of ‘top buys’, behind old favourite Lloyds Bank.

At first glance, the FTSE 250 member’s popularity looks incredibly odd. After all, the value of this company has fallen by almost a quarter in 2026 so far. For comparison, the index is up 5%.

This horrible run of form is nothing new either. Since May 2021, the stock has shed more than 50%.

Why are the shares in demand?

One potential explanation is that investors are sensing a striking contrarian opportunity. To paraphrase the legendary Warren Buffett, they’re being “greedy when others are fearful” and “buying quality merchandise when it’s marked down“.

The idea behind this is that those brave enough to buy now will reap the reward when the recovery comes. Of course, the snag with all this is that it may never arrive.

On an optimistic note, Taylor Wimpey still looks financially robust. Its balance sheet boasts a net cash position. The £2.8bn cap business possesses a lovely land bank too.

We also can’t ignore the dividend yield. This currently stands at 8.7%. Try to find a savings account that will pay this sort of rate! At a time when everyone is looking to make ends meet, that sort of cash distribution is hard to ignore.

Longer term, all major housebuilders — including Taylor Wimpey — stand to benefit from the demand for new homes. Regardless of who is in government, the current shortage can’t be ignored.

Risks ahead

This is not to say that holding the shares in the weeks and months ahead will be easy. With the full impact of the Iran-US conflict still to filter through, there’s a good chance that inflation will creep/march higher. This could see the Bank of England raising interest rates, just when we thought the post-Covid surge would draw a line under fast-rising prices.

Such a scenario will not be good news for the company as it faces higher building costs. It also won’t be great for the mortgage market and, subsequently, prospective buyers.

All this does go some way to explaining why the company is equally popular with short-sellers — those who believe there’s worse to come.

As much as the share price has already fallen, this stock is still not cheap either. A price-to-earnings (P/E) ratio of 12 actually makes it slightly more expensive than rivals. That valuation is also fairly average relative to the market as a whole.

The aforementioned monster dividend also can’t be guaranteed. Indeed, the near-7p per share payout forecast by analysts for 2026 doesn’t look set to be covered by expected profit. This can only continue for so long. Unless business improves, CEO Jennie Daly could be forced to make yet another cut.

My verdict

These risks aside, I’m still of the opinion that this company has the potential to reward investors handsomely if/when the housing market gets its mojo back. This being the case, I’m considering following the aforementioned investors and taking a position myself, albeit after making sure that my portfolio will still be sufficiently diversified if things get worse.

Should you invest £5,000 in Taylor Wimpey Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Taylor Wimpey Plc made the list?

Paul Summers has no position in any of the shares mentioned.

The post Why is everyone buying Taylor Wimpey shares? appeared first on The Twelfth Magpie.

More reading

• Taylor Wimpey shares are down 31% in 5 months! Is it one of the best stocks to buy now?
• This passive income stock offers a 9.8% dividend yield, and UK investors are buying!
• Here’s how I’m targeting £25,451 a year in passive income from this FTSE dividend gem
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?

The last few years have been an absolute horror show for holders of Diageo (LSE: DGE) shares. However, anyone brave enough to snap up the stock one month ago might be feeling a little smug.

The premium spirit giant’s value has increased by just under 10% over this period. OK, so that sort of gain probably won’t see many champagne corks being popped. But it’s almost double the rise seen in the FTSE 100 index over the same period.

Put another way, a £10,000 stake will have already generated a tidy profit of around £1,000.

I don’t know about you, but that seems a pretty great return for doing little more than clicking the ‘buy’ button.

So, can Diageo shares keep rising?

As always, one can come up with reasons that support and oppose the idea that this form will continue.

Optimists will point to this month’s trading statement as evidence that former Tesco man and new CEO Dave Lewis is already having a positive impact.

Reported net sales were 2.3% higher in the firm’s third quarter. Guidance for the whole 2026 financial year was also reiterated. Sure, that’s hardly the sort of news to get the pulse racing. But it does suggest that things are starting to stabilise.

The number of short sellers circling the stock is relatively low, too. If these usually-very-well-informed traders aren’t confident enough to bet the share price will fall from here, that’s got to be encouraging, right?

No shortage of challenges

Well, it’s worth bearing in mind that even the most hated stocks can still see periods where the share price heads north, despite nothing massively changing. Sentiment about individual companies can often overshoot in either direction, thanks to short-term buyers and sellers (not Magpies) being driven by emotion. Perhaps Diageo’s recent rise is simply an indication that people are still pessimistic, just slightly less pessimistic than before?

There are certainly plenty of reasons for staying grounded. Indeed, the company said that it “remains mindful of continued geopolitical uncertainty“. North America — where market conditions were described as “soft” also remains its “biggest challenge” and things won’t be fixed overnight.

Now factor in the not-unsubstantial, longer-term challenges of weight-loss drugs and health-obsessed younger generations drinking less alcohol.

Let’s also not forget that stock markets can be cruel. Lewis and his team could do everything right from here and still see the company’s value dragged down along with everything else due to a macroeconomic shock.

Promising movement

As things stand, I see the recent positive momentum as something to toast. But I’m not quite ready to believe that we’ve seen an end to Diageo’s dark days just yet. With no more numbers expected until August’s full-year results, investors may look to move their money elsewhere. Sometimes, no news is as bad as, well, bad news.

Still, I’m definitely not looking to take the shares off my wishlist. Some seriously hot weather and major sporting events, such as the forthcoming World Cup, surely won’t do any harm to sales.

If the company can then show it has managed to deliver on its target of £300m in savings by the end of June (or possibly even more), I can see buyers piling in.

Should you invest £5,000 in Diageo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo Plc made the list?

Paul Summers does not hold any positions in the companies mentioned.

The post Here’s how much £10,000 invested in Diageo shares just one month ago is now worth… appeared first on The Twelfth Magpie.

More reading

• Is the Diageo share price about to pull a Rolls-Royce?
• By July 2027, Diageo shares could turn £9,999 into…
• Diageo shares are a nightmare – is it finally time I sold up?
• Down 6% since January, can Sir Dave still rescue Diageo’s shares?
• By July 2027, Diageo shares could turn £10,000 into…