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.

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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.

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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.

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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.

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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.

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Whether we’re talking about an impending stock market crash or something less dramatic, it’s clear some of us feel that share prices are looking a bit frothy.

Last week, Sarah Breeden, deputy governor for the Bank of England (BoE), said the quiet part out loud: “There’s a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point.“

As a Fool, this is actually music to my ears. Let me explain why.

A market crash is just what I want

Like you, I’m trying to grow my wealth. Since holding cash in a savings account is a recipe for disaster, due to the eroding effects of inflation, I’ve turned to the stock market.

One way of potentially turbocharging performance in the latter is to buy individual company stocks when other investors are selling. By doing so, I can ride to the eventual recovery when people realise we’re not actually going to hell in a handcart.

This is why I believe a stock market crash or some “adjustment” is just the sort of thing any long-term investor should hope for.

Of course, this isn’t to say that going against the grain’s easy. News headlines full of doom and gloom always have the potential to make us think we’re making a grave error.

But we also know that – to date – the market has always rallied. And if it doesn’t, we’ll probably have more important things to think about than how our portfolios are faring.

When will this opportunity arise?

Working with uncertainty

I’ll save you some time. No one person or organisation — including the BoE — knows when the proverbial will hit the fan. That’s just the nature of the stock market. The long-term rewards have been wonderful. But the path there has always been unpredictable.

This is why I keep a list of brilliant stocks I’d like to buy if they suddenly dropped in price. To paraphrase billionaire investment legend Warren Buffett, what could be better than buying “quality merchandise when it’s marked down“?

Personally, I like businesses with strong economic moats – things that separate them from the competition – and those that generate sky-high margins. Having a robust balance sheet with minimal (if any) debt can also help when navigating choppy economic waters.

One example of this has to be fantasy figurine maker Games Workshop (LSE: GAW). Thanks to global expansion, huge IP growth and fan loyalty, the FTSE 100 member has been one of the UK success stories over the last decade.

Will I get my chance?

Just how long this momentum will last is open to debate. The fact that inflation’s creeping up again means that even the most dedicated hobbyist may need to cut back on their purchases. The current price-to-earnings (P/E) ratio of 34 also implies that investors’ expectations are already very high. And what do we know can happen when hopes begin to surpass reality?

If – for whatever reason – that price were to (temporarily) tank however, I’d be backing up the truck.

Sure, past performance is no guide to the future. Even so, we can see that previous periods of volatility at Games Workshop have proven to be wonderful buying opportunities.

I’m hoping to get another soon.

The post If a stock market crash is coming, this is the FTSE share I want to buy appeared first on The Twelfth Magpie.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Games Workshop Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

One very popular method among investors, including the great Warren Buffett, is to look for and buy value stocks. These are companies that are, for a variety of reasons, trading on low valuations relative to their fundamentals.

Looking around, I can see a few of potential opportunities to consider in the UK market.

Turnaround candidate?

Broadcaster ITV (LSE: ITV) is arguably one example. Based on analyst projections, its shares currently change hands at a price-to-earnings (P/E) ratio of just under 10.

The trouble is that the performance of the share price over the long term leaves a lot to be desired. Anyone picking up the stock five years ago will have endured a 33% fall. Sure, dividends received over this period would have soothed the paper loss to some extent. But this is akin to treading water. It’s not a recipe for getting rich.

Can long-standing CEO Carolyn Mccall and her team turn things around? The sheer amount of competition ITV faces along with the structural decline in TV advertising suggests it will be tough. But more growth in its Studios division would certainly do no harm. I also wouldn’t rule out a takeover bid or two.

In the meantime, the stock offers a forecast yield of 6.3%.

Huge dividend yield

Price comparison websites provider MONY Group (LSE: MONY) is a second mid-cap value stock that catches the eye and may be worth further research. Like the broadcaster, its share price has been going down for some time now. We’re talking about a 14% fall in the last 12 months.

A lot of this seems to be fuelled by concerns over the £900m cap’s ability to grow. Yes, revenue is ticking up but this is not the sort of momentum that’s going to get investors busting a gut to buy. The large number of share sales by directors in March doesn’t bode well either.

All that said, MONY trades on a P/E of nine. That looks remarkably cheap considering the above-average margins it consistently posts. The launch of a new MoneySuperMarket Chat GPT app also shows how it’s leveraging artificial intelligence (AI) to enhance services for customers.

The passive income is worth mentioning too. At a chunky 7.6%, the forecast yield is over double that of the FTSE 250.

How cheap?

By contrast to the previous two stocks, JD Sports Fashion (LSE: JD) pays relatively little in dividends. So there won’t be much in the way of compensation for buyers if the shares keep falling in value. They’re already down nearly 20% in 2026 alone!

The outlook isn’t great either. With inflation on the rise due to the conflict between Iran and the US, it’s likely that shoppers will be looking to cut back (again) on discretionary purchases.

But I still think there’s a lot to like. JD’s ongoing growth strategy in the US is progressing well and now accounts for a significant amount of total revenue. The forthcoming footfball World Cup could also provide a boost to earnings (even during tough times) thanks to long-standing partnerships with key brands such as Nike and Adidas.

To cap things off, it’s also the cheapest of the three. The P/E here’s a little less than six! If/when sentiment improves, those brave enough to think about investing now could be rewarded.

The post P/E ratios of less than 10. Are these 3 FTSE value shares hot enough to consider buying now? appeared first on The Twelfth Magpie.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV, Mony Group Plc, and Nike. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Rio Tinto (LSE: RIO) shares have been ‘top of the stocks’ among AJ Bell investors this week.

But what’s behind this popularity? And will it continue?

Outperformer

To be clear, the mining colossus has been in favour for some time. Anyone buying at the 52-week low set back in late June 2025 will now be looking at a gain of about 80%!

Even those who only bought at the beginning of the year will probably be popping a few champagne corks.

As things stand, the £120bn-cap is walloping the index return. We’re talking about a gain of almost 24% compared to the top tier’s rise of 5%. This is before we’ve even taken into account the near-192p per share dividend received by holders exactly one week ago (16 April).

Although there’s no guarantee this will carry on, it clearly shows that Foolish investors have the ability to 1) beat the market and 2) don’t need to go fishing among highly-volatile penny stocks to do so.

What’s going on with Rio Tinto shares?

This wonderful momentum can partly be attributed to a lovely rise in the copper price. The red metal is a key part of the company’s portfolio and the recent growth in production has reduced Rio’s reliance on iron ore somewhat.

The numbers have also been encouraging. Back in February, the Anglo-Australian firm reported a 7% rise in revenue to $57.6bn. Underlying profit rose 9% to $25.4bn.

It’s not all been plain-sailing though. The outbreak of war between Iran and US back in March hit share prices across the board, including that of Rio Tinto. While we’ve seen a solid rebound in April, this does show how exposed the company is to geopolitical tensions and subsequent economic concerns.

The miner’s income credentials can also be questioned. The total dividend has been up and down over the years. Still, it could be argued that this is to be expected when investing in a company that has absolutely no say over the price of what it digs up. Moreover, the current forecast yield of 4.8% is more than would be received from a FTSE 100 tracker fund (roughly 3%).

At the time of writing, this year’s dividend also looks like it will be covered by expected profit. So there should be no need for managment to dip into cash reserves to fund it.

Still time to buy?

I’ve been bullish on Rio Tinto shares for some time now. Yes, the time to really load up was last year. But I still think they’re worth considering today, albeit within a diversified portfolio. A forecast price-to-earnings (P/E) ratio of 12 doesn’t feel excessive relative to the rest of the UK market. It’s also pretty reasonable (athough not cheap) among companies in the basic materials space.

But the biggest argument in favour of holding a slice of Rio surely has to be the long-term outlook. While share price movement in the near-term is hard to call, the company’s clearly looking towards the future and planning for the huge demand in metals to support the green energy revolution and ongoing rise of AI. This will include building one of the world’s largest copper mines in Arizona.

Bar any unforeseen disasters, recent gains might be just the start.

The post Why is everyone buying Rio Tinto shares? appeared first on The Twelfth Magpie.

More reading

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Aj Bell Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Taylor Wimpey (LSE: TW) shares have been in terrible form for a while. Anyone who bought 12 months ago and kept the faith would be looking at a paper loss of over 20%. Those who loaded up five years ago will have seen their stake more than halve in value.

Based on this performance, I’m not surprised if new investors are reluctant to get involved. But are we getting to a point where they might be considered a bargain?

Serious headwinds

It’s not an accident that the UK housebuilder is out of favour with the market. The last five years haven’t exactly been plain-sailing for our economy. We’ve gone from the shock of the pandemic to a cost-of-living crisis to concerns over armed conflict in Europe and the Middle East. All of these developments had or are having an impact on interest rates, building costs and, ultimately, buyer appetite.

Recent results don’t exactly inspire confidence. Back in March, the £3bn cap forecast lower profit for 2026. Somewhere in the region of £400m is now expected. This is down from the £420.6m delivered in 2025.

Of course, this was just an estimate at the time. But I’m not sure the firm’s outlook has improved since. A swift end to the Iran-US conflict looks increasingly unlikely, meaning that oil and energy prices are likely to remain high. This hardly bodes well for the next trading statement, due on 28 April. It might also help to explain why the High Wycombe-based business is proving fairly popular among short sellers.

But is it absurd to even contemplate adding it to a stock market shopping list?

It’s not all bad

I’m not so sure. As things stand, Taylor Wimpey shares change hands at a price-to-earnings (P/E) ratio of 11. That’s not dirt cheap but nor does it imply that the market is ignoring recent events. Rival Persimmon trades on a similar valuation. Barratt Redrow is very slightly less expensive.

The forecast dividend yield of 8.8% further sweetens the investment case. For comparison, the FTSE 250 index in which the company features yields 3.3%.

Yes, those cash distributions are never nailed on and signs of a further deterioration in trading could force CEO Jennie Daly to make another cut. Right now, it’s anticipated that the total dividend will barely be covered by anticipated profit.

Cut or not, whatever is received could still be regarded as sufficient compensation for being asked to wait for a recovery. Moreover, Taylor Wimpey doesn’t look financially stressed as things stand. It’s balance sheet still boasted a net cash position at the end of the last financial year.

Taylor Wimpey shares are worth considering

Things have been torrid for holders and, barring news of a proper peace deal, could stay that way. However, the long-term tailwinds remain in place. Put simply, the UK requires more quality homes to be built. As one of the biggest players, I struggle to believe this company won’t play a role in meeting that demand.

My view is that this is a business that’s under pressure; but it’s not broken. The best time to ponder buying a cyclical stock is surely when the economic chips are down. As such, I reckon the shares are worthy of a closer look.

The post Are Taylor Wimpey shares just too cheap to ignore? appeared first on The Twelfth Magpie.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Barratt Redrow and Persimmon Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Since the beginning of the fiscal year (6 April), I’ve been looking for stocks to buy with my new ISA allowance, specifically those that pay me a healthy dollop of passive income just for owning them.

For a giggle, I decided to see what ideas ChatGPT could offer.

The usual suspects

Rightly recognising that there’s no such thing as a perfect stock, the AI bot actually highlighted five potential options. The first four read like a who’s who of income shares:

• M&G
• Aviva
• British American Tobacco
• BP

All of the above feature in the FTSE 100; all currently offer above-average dividend yields, with the lowest being 4.6% (BP). However, ChatGPT’s fifth suggestion — insurer and asset manager Legal & General (LSE: LGEN) — was also the one it labelled as the best UK dividend share overall.

This isn’t just a high-yielding stock. At 8.2%, it’s the highest-yielding stock in the index. Moreover, this is a company with a great record of raising the amount of cash it returns every year.

What’s not to like?

All income, no growth

Well, my grumble with Legal & General is that the shares have technically gone nowhere for ages.

Sure, there’s been volatility along the way. But any owners logging in to view their portfolio for the first time since April 2021 won’t have seen much change at all in what their stake’s worth. In sharp contrast, many top-tier stocks are up massively in value.

Now, I could argue that this might not matter to the average income seeker. That person may simply be looking for a way to supplement their pension and/or help pay for a few expenses.

But that’s my concern in a nutshell. The fact that this stock has performed poorly in recent times has put a lot of pressure on that passive income to pick up the slack. And we know that dividends can never be guaranteed.

Like others in this space, the £15bn-cap is very sensitive to economic shocks and interest rate speculation. After all, any fall in market sentiment could impact the money it makes in fees. For evidence of this, check out what happened to the share price in March when the US/Iran war kicked off.

It’s also worth noting that Legal & General’s total dividend hasn’t been covered by profit over the last few years. Topping it up from reserves can only carry on for so long.

Worryingly, the AI bot failed to mention any of this in its response. This goes some way to showing why I never blindly rely on ChatGPT (or any alternative) to pick stocks for me.

Better times ahead for this passive income powerhouse?

As part of a diversified portfolio, I reckon Legal & General shares warrant attention. However, I’d like to see a bit of mojo in its share price before long to complement that magnificent income stream. While it may have paid less in dividends, a simple FTSE 100 tracker would have outperformed the financial services provider in the last five years, assuming that money had been reinvested.

Whether and when that spark arrives is anyone’s guess. But on an optimistic note, further growth overseas combined with the massive structural tailwind that is an ageing population could see more investors taking an interest.

The post I asked ChatGPT for the best stock to buy in my ISA for passive income. Here’s what it said… appeared first on The Twelfth Magpie.

More reading

• Just 9% of us can expect a ‘comfortable’ retirement! Could UK shares be the answer?
• 3 passive income shares to consider buying for a 7% yield
• How much would you need in an ISA to match the new State Pension and get another £12,547 a year?
• Here’s why Legal & General is still one of the UK’s most popular SIPP buys
• How have Legal & General shares become a dividend powerhouse? 5 reasons why!

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco P.l.c. and M&g Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.