Both stocks are offering market-beating dividends. But how much income might shareholders expect moving forward? Here are the latest forecasts.

Big short interest

The first thing to note is that this pair have struggled during the latest chapter of the cost-of-living crisis. Domino’s, which operates the franchise brand in the UK and Ireland, is down 43% in two years while Greggs has slumped 41%.

Some of the key reasons include:

• Squeezed consumer spending.
• Higher input costs (food, energy, fuel, etc).
• Higher labour costs (wages/National Insurance)
• Slower sales growth.
• Under-pressure profits.

All of these risks are very active, of course. Food and energy costs are going up, which could have a double-whammy effect on the two firms, squeezing both customers’ budgets and profit margins.

Therefore, it’s no surprise to see that the stocks are among the most shorted in the UK. In other words, hedge funds and institutional traders are betting they have further to fall.

Short interest is the total number of a company’s shares that investors have borrowed and sold, but not yet bought back to close out their positions. Greggs is the fifth most-shorted UK stock today. 

What are the latest forecasts?

One positive for new investors is that the struggling share prices have pushed up the dividend yields. Domino’s is sporting a 5.9% yield while Greggs’ is 4%. Both are higher than the FTSE 250, which is 3.3%.

Looking ahead, analysts are understandably not pencilling in bumper hikes in the payouts this year. The Domino’s dividend is expected to be flat at 11.3p per share, as is Greggs’ at 69p. Therefore, we get the same yields as before.

Turning to next year though, analysts are a little more optimistic. They see 12p for Domino’s and 70.3p, giving forward-looking yields of 6.3% and 4.1% respectively.

As mentioned though, the inflationary effects, including from the Iran war, cast a shadow over the UK economy and consumer spending. If things turn really ugly, both dividends could be reduced.

Which stock do I like better?

As challenging as things are, both firms recently put up resilient figures. Greggs’ total sales rose 7.5% to £800m in the first 19 weeks of the year, with like-for-like (LFL) sales at company-managed shops up 3.3% in the last 10 weeks.

Meanwhile, Domino’s Q1 LFL sales unexpectedly increased 4.5%, the pizza firm’s fastest growth in 11 quarters. Its new ‘Chick ‘N’ Dip’ offer’s been going down well and sales are expected to be strong over the summer during evening/night World Cup games.

Which stock do I prefer? I actually think both are worth considering for passive income, especially Domino’s with its 6.3% forward yield. If met, it would pay about £500 from an £8,000 investment.

But to my mind, Greggs has stronger long-term growth potential. It’s targeting 3,000+ shops (up from 2,740 today), including more locations in train stations and supermarkets. Greggs is also expanding into evening trade (after 4pm).

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?

Ben McPoland has no position in any of the companies mentioned.

The post Here are the latest dividend forecasts for Domino’s Pizza and Greggs shares appeared first on The Twelfth Magpie.

Here are three UK shares I think merit investors’ consideration at the moment.

Reckitt

Consumer goods maker Reckitt (LSE: RKT) has had a difficult few years.

That helps explain why the Dettol maker’s share price is down 7% over the past year alone — and 28% over five years.

A 28% fall looks particularly bad considering that the wider FTSE 100 index of which Reckitt is a member has moved up by 50% during that period.

Why the fall?

A disastrous infant formula acquisition has long dogged performance, even though Reckitt has worked hard to move beyond it. Ongoing risks from legal action about historical product liability are also weighing on the share price.

But with a price-to-earnings ratio of just 10, I think the Reckitt share price now looks like offering potentially excellent long-term value given the company’s strong brand portfolio, pricing power, and global distribution footprint.

The 4.5% dividend yield is around one and a half times as lucrative as the FTSE 100 yield overall.

Legal & General

Another underperformer in the FTSE 100 over the past five years has been financial services firm Legal & General (LSE: LGEN).

During that period, the Legal & General share price has shed 4% of its value.

The company aims to keep growing its dividend per share annually, as it has done over the past few years. Given that its 8% yield is already the highest in the index, that is attractive.

Can it last?

The rate of annual growth has been reduced to 2%. One risk I see this year’s sale of a large US operation. That will likely eat into the revenue and profit base at Legal & General.

Still, I like the long-established company’s strategic focus on the huge and resilient retirement-linked financial services market.

With a powerful brand, large client base, and proven cash generation potential, I continue to think Legal & General shares look attractively priced.

Domino’s Pizza

There is, of course, life beyond the FTSE 100.

FTSE 250 member Domino’s Pizza (LSE: DOM) has been moving up this year. The share price has increased 11% since the beginning of 2026.

That still leaves it 28% lower over the past year, however.

The City is concerned about risks such as higher staff costs and market saturation. Chicken is displacing pizza in some consumers’ affections, though Domino’s aims to stay on top of that trend with a revamped chicken offering.

The local master franchisee of the global giant is profitable and offers a juicy 5.9% dividend yield.

In a trading update last month it said that it has had “an encouraging start to the year”, with like-for-like sales growth of 5%.

Domino’s has a relatively simple, tested business model. It benefits from economies of scale and a strategic focus on its main UK market. I see those as strengths.

Should you invest £5,000 in Reckitt Benckiser Group 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 Reckitt Benckiser Group Plc made the list?

Christopher Ruane owns shares in Domino’s Pizza.

The post 3 UK shares to consider buying and holding for a decade appeared first on The Twelfth Magpie.

But how big does an ISA actually need to be to make that happen?

Running the numbers

At the current FTSE 100 dividend yield of 3.06%, a straightforward index fund approach would require a portfolio of £274,509.80 to generate the equivalent of £700 a month, or £8,400 a year.

That’s obviously a substantial target. And for most investors, it can feel a long way off.

But here’s where it gets interesting. By building a carefully crafted portfolio of individual income stocks, it’s possible to target a higher yield. And that means the required portfolio size can drop drastically.

Let’s say the same investor instead builds a portfolio yielding 6%. In that case, the amount needed to earn £700 a month passively drops to £140,000 – almost half.

Of course, £140,000 is still a serious sum. But even for a modest investor, it’s still a more than achievable target when consistently drip-feeding money in each month and reinvesting dividends along the way.

So, which dividend stocks should investors consider today?

A rare income opportunity?

Domino’s Pizza Group (LSE:DOM) is one name catching the attention of some opportunistic income investors right now.

At its current share price, the UK and Ireland pizza franchise is offering a yield of 5.98%. That’s near the highest level the company has paid since becoming a publicly listed company. And the payout is being driven by a combination of two factors.

The first is a falling share price. With the cost-of-living crisis squeezing household wallets, growth has been quite challenging for the pizza takeaway giant. It understandably weighed heavily on volumes and top-line growth.

However, despite the headwinds, the group’s franchise models have kept it a highly cash-generative business, allowing dividends to continue to flow into the pockets of shareholders. And following the group’s latest trading update, some early signs of growth recovery are starting to emerge.

Franchisee profitability metrics are beginning to stabilise, total system sales are ticking up, and management has hedged the group’s expected costs for 2026, providing greater security to margins.

As CEO Nicola Frampton puts it: “We have carried the positive momentum seen at the end of 2025 into 2026, with trading performing in line with our expectations”

Assuming these positive trends continue, not only could investors lock in a near-6% yield today, but they could also benefit from a share price rally – a rare combination of income and growth.

Of course, this outcome is not guaranteed. Higher cost of living pressures on consumers are expected to hit in the coming months, courtesy of the Iran war. And that, in turn, could derail Domino’s early progress.

Nevertheless, I remain cautiously optimistic. So, for investors looking to build a second income, Domino’s could be worth a much closer look.

Should you invest £5,000 in Domino's Pizza Group 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 Domino's Pizza Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post How much do I need in an ISA to earn a £700 monthly second income? appeared first on The Twelfth Magpie.

How lucrative? Let’s find out!

Starting with intent

To begin, I presume that someone puts their full annual contribution allowance into a Stocks and Shares ISA.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Typically that is £20k per year, so over five years that ought to add up to £100k.

There can be fees and commissions that eat into that money even when it is sitting idle, so it pays to compare the options when looking for a Stocks and Shares ISA to use.

I realise that for many of us, £20k per year is a lot to invest. The same approach could work on a smaller scale, producing less income.

But I think it can be worth starting with strong intent to build serious passive income streams.

Time and dividend yield both matter

How much that will earn depends on dividend yield and timeline.

To start with, dividend yield is the annual passive income earned through dividends, expressed as a percentage of the cost.

For example, at a 5% yield, £100k could earn £5k annually. That is the straightforward result of fully utilising the ISA allowance for five years, then pulling out all dividends as passive income.

But deferring gratification, compounding (reinvesting) dividends along the way could increase the ultimate size of the passive income streams.

Say someone puts in £20k annually to their ISA for five years, compounding dividends, then stops putting money in but keeps compounding. After a decade, the ISA would be big enough (around £110k) to earn around £5,520 in passive income annually.

If they wait another five years and keep compounding along the way, the ISA ought to be worth around £141k – enough to earn annual passive income north of £7k.

Or, compounding for another decade beyond that, the ISA ought to be just short of £230k in size. At a 5% yield, that could produce annual passive income of around £11,487.

Here’s a passive income share to consider!

This is not just academic to me – I already earn passive income from some shares I own.

One is Domino’s Pizza (LSE: DOM). The UK master franchisor of the global pizza giant yields 6%.

However, above I said that yield is a function of dividend per share and share price. Domino’s yield partly reflects its share price more than halving over the past five years. Ouch!

Clearly, then, there are risks. The UK pizza market may have reached saturation point, chicken is replacing pizza in some customers’ affections and food inflation could eat into profit margins.

For investors willing to stomach such risks, though, I see the FTSE 250 share as worth considering. Domino’s is well-known and has economies of scale.

The business is proven and its own expanded chicken offering could help protect the business as consumer tastes shift.

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The FTSE 250 group has the master franchise agreement to own, operate and sub-franchise Domino’s stores in the UK and Ireland.

Last week (23 April), the share price shot up more than 10% in a single day. And it’s now up 16% inside a month. Yet, despite this, the stock’s still down 56% since the start of 2022. Is it worth looking at?

Busy summer coming up

The news that sent the stock up last week was a strong Q1 trading update. This showed the firm enjoyed its fastest growth in 11 quarters, with total system sales jumping 5.8%, including like‑for‑like growth of 4.5%.

During the quarter, the group launched its ‘Chick ‘N’ Dip’ offer. The accompanying ads have been everywhere: they show hefty chunks of boneless chicken being dunked into various sauces, set to the familiar ‘Domino-hoo-hoo‘ jingle. 

Early feedback’s been good, and Domino’s has also just launched its ‘Italianos’ range (built on a thin crust pizza collection). So there’s now plenty of choice for football fans to get stuck into during the World Cup this summer.

Speaking of which, this strong start to the year sets the firm up nicely for the second and third quarters. Five of the six group games England and Scotland play in June start at either 9pm, 10pm or 11pm. That’s prime pizza delivery time!

Another positive worth highlighting here is that the group’s costs are hedged for the current financial year, with some covered into 2027. And despite the uncertain backdrop, management isn’t expecting any supply-related issues.

CEO Nicola Frampton said: “As we move through 2026, we remain firmly focused on growing the core business and improving our operational execution for current and future years.”

GLP-1s and rising inflation rate

These results are encouraging given all the concerns about GLP-1 drugs. Clearly, they’re not harming sales, despite record use. And the ‘Italianos’ offer might appeal to GLP-1 users, as thinner-crust pizzas are obviously easier on the stomach than doughy, stuffed ones.

The biggest risk to sales growth is probably rising inflation, which is putting more pressure on fragile consumer confidence. Once the football’s over, consumers might tighten their belts, setting the pizza group up for a tougher period later in the year.  

Passive income

What about the dividend yield? At 5.7%. that looks attractive to me. It means 2,656 shares would unlock £300 in passive income, assuming the yield’s sustained, which now looks likely given the strong trading update.

At the current price, these shares would cost about £5,265.

Should investors consider a slice?

Now, given its maturity, this isn’t a company I’d expect red-hot growth or finger-licking dividend growth. After all, the group ended 2025 with 1,399 stores across the UK and Ireland. That’s a lot already.

However, the trusted brand, well-oiled delivery operation, diversified food offerings, and high dividend yield make me believe the stock’s worth considering. Especially while it’s trading cheaply, at just 10.5 times next year’s forecast earnings.

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In hindsight, it was indeed worth a closer look, as had someone bought £5,000 worth of shares on Tuesday, 7 April, when the stock market opened after the Easter break, that investment would now be worth about £5,800 – a great result in a little over two weeks!

The strongest growth in 11 quarters

Is the stock still worth a look at current levels? I think so.

Earlier today (23 April), the company posted a trading update for Q1. And while it was brief, it was very encouraging.

For the quarter, total system sales increased by 5.8%, with like‑for‑like growth of 4.5% (its strongest growth in 11 quarters). Meanwhile, total orders rose by 2.3%, with like‑for‑like orders up 0.9%.

In terms of cost management, the company said that its costs are hedged for the current financial year with some costs hedged into 2027. That’s clearly a positive.

As for guidance, the group said that it currently expects to achieve its earnings expectations for the full year. I’m not exactly sure what these expectations are but the market is currently looking for 18p per share in earnings.

We have carried the positive momentum seen at the end of 2025 into 2026, with trading performing in line with our expectations.
Domino’s Pizza CEO Nicola Frampton

Tasty new products

It’s worth noting that on the product front, the company said that it successfully launched ‘CHICK ‘N’ DIP’ during the quarter. Initial trading performance here met expectations with positive feedback from customers.

It also said that it had recently launched its ‘Italianos’ pizza range which is built on a thin crust pizza collection. I think this could be a winner for the company – consumers today are often looking for this type of pizza.

So overall, business performance looks robust. However, there doesn’t seem to be any sign of a major slowdown from GLP-1 weight-loss drugs, which is a future risk.

How’s the valuation?

As for the valuation, the stock still looks cheap. If we take that 18p per share earnings forecast and compare it to the current share price of 201p, we get a forward-looking price-to-earnings (P/E) ratio of just 11.

That strikes me as good value. Especially when you consider the company’s strong brand and high return on capital.

What about the dividend yield?

Zooming in on the dividend yield, it’s still very attractive, despite the recent share price rise. With analysts expecting a payout of 11.1p per share for 2026, we are looking at a yield of around 5.5%.

It’s worth pointing out that dividend coverage (the ratio of earnings per share to dividends per share) is solid at around 1.6. That’s one of the reasons I highlighted the stock a few weeks ago – it has much better dividend coverage than a lot of other high-yield UK stocks.

Put all this together, and there’s a lot to like about Domino’s from an investment perspective. I believe this stock is worthy of further research.

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But such businesses can have quite a few bumps along the way, I have found. Indeed, over the past five years, the FTSE 250 has gained 16% — but that is less than a third of the 50% gain the FTSE 100 has delivered over that period.

One FTSE 250 share I bought when I thought it was a bargain has been dogged by poor performance. But a trading statement issued today (23 April) has seen its share price move up 9%.

Could this potentially be a sign of better days to come?

Strong brand, exposed to shifting consumer trends

The share in question is Domino’s Pizza (LSE: DOM), the local master franchisee of the US pizza giant.

When I bought in, I thought the investment case was simple. Domino’s had been winding down overseas operations in some European markets and focusing on growth potential in its UK market. It looked set to benefit from economies of scale and a clearer strategic focus. It has a strong brand, lean operating model and loyal customer base.

However, things did not go well. A surge in demand for pizza deliveries over the pandemic years started to fizzle out. Chicken threatened to displace pizza in the hearts of some delivery customers.

Even after today’s boost, the FTSE 250 share is still 46% cheaper than it was five years ago.

A positive start to the year

That price fall has helped boost the Domino’s dividend yield to 5.7%.

The tasty passive income streams are attractive to me as an investor and help explain why I have hung on to the share, alongside the fact that I still believe in the basic investment case I outlined above.

I was cheered by the positive news in today’s update when it comes to that investment case. The company’s launch of a chicken dipping product helps to combat the threat that chicken demand could displace pizza orders for some customers.

In the first quarter, total orders were up around 2% year on year. Some of that came from expansion and some from sales growth at existing outlets. Total sales revenues were up 6%, suggesting that as well as higher sales volume, the company was able to raise its prices.

Frankly that sort of growth is not exceptional. Greggs has delivered better numbers and still been punished by the City.

But the difference is around expectations.

Domino’s has lately been dogged by investor concerns about whether its market size can grow at all, or even stay the same. So delivering growth is better than many people expected, helping push up the share price.

This still looks cheap to me

I am still in the red on my Domino’s position, although am happily collecting dividends along the way.

But I continue to hold the share and plan to keep doing so, as I think it looks cheap given its strong brand, proven business model and ongoing growth opportunities.

Although the current price-to-earnings ratio of 13 may not look like a screaming bargain, last year’s operating profit had shown a sharp decline. If the company can translate growth into earnings recovery, the current valuation looks low to me.

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But does this new momentum now mean time’s running out for investors to snap up cheap UK stocks?

What’s going on with FTSE shares?

There are a lot of factors behind the FTSE 100’s massive outperformance last year. But one of the biggest drivers is something called capital migration. With US stock valuations reaching record highs and uncertainty creeping into the American economy, investors worldwide have begun rebalancing their portfolios. And a lot of this capital has started moving into other markets, including the UK.

That isn’t surprising given the enormous discount that UK shares trade at versus international peers. For reference, the average earnings multiple for a FTSE 100 stock is around 15. In the US, it’s currently closer to 25.

With more uncertainty now creeping into the US stock market on the back of AI disruption fears and surging global oil & gas prices, this capital migration could continue. And that means 2026 could be another gangbuster year of growth for FTSE shares.

Is time running out?

Capital migration creates a powerful tailwind for the UK stock market. But it’s important to highlight that the persistent discount in valuations isn’t random. It’s driven by a similarly persistent economic growth and productivity problem – something that successive governments have failed to solve.

The good news for investors is that this also means there are and likely will still be plenty of bargain-buying opportunities to capitalise on for many years to come. And even in the UK market, investors who identify these opportunities ahead of the crowd can go on to enjoy impressive returns.

So which stocks should investors be looking at today?

A top value pick?

According to the team of expert analysts at Peel Hunt, Domino’s Pizza Group (LSE:DOM) could be one of the most misunderstood FTSE shares on the market today. It’s a highly cash-generative franchise business that’s been serially re-rated downwards, despite taking market share thanks to a structurally sound business model.

The company generated £80.7m of free cash flow in 2025, enabling management to continue expanding its franchise empire as well as simultaneously investing in its industry-leading technology infrastructure. Instead, its competitors have been busy closing stores.

Despite this, Domino’s shares are trading at their lowest point in over a decade. Yet some caution’s justified.

Stagnant top-line growth alongside continuously rising cost pressures, courtesy of food and wage inflation, is putting a lot of pressure on the bottom line. And this impact is only being compounded by the weakness in UK consumer spending.

But looking at the Domino’s share price, this FTSE stock’s seemingly been repriced as if these problems are structural when, in reality, they appear to be cyclical. Peel Hunt has come to a similar conclusion, issuing a 275p share price target – almost 60% higher than where the stock trades today.

There’s no denying the near-term earnings picture’s cloudy. But looking out to the longer term, Domino’s highly cash generative business model perfectly positions the company for a potentially impressive rally once consumer spending starts to bounce back. It’s worth a closer look.

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Here, I’m going to show how an investor could potentially generate income of nearly £1,500 a year with just five stocks. Could this kind of strategy help you achieve financial independence?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Building a high-yield portfolio

In the table below, I’ve put five FTSE 350 stocks along with their forward-looking dividend yields. Note that these yields are based on analysts’ estimates for dividend payments and they may not be accurate.

The average yield across those five stocks is 7.3%. This means that if an investor was to split £20,000 across these names, they could potentially be looking at income of around £1,460 per year.

What’s the catch?

That’s obviously a fair bit of income from a £20,000 investment. So what’s the catch? Well, first, dividends are never guaranteed as companies can reduce or cancel them at any time and second, capital’s at risk (unlike with a bank account).

These are all solid companies. However, they all face risks and investors could potentially experience share price losses.

In the case of Aviva, for example, its share price could drop if the stock market continues to fall. Because lower equity markets will translate to lower earnings on investment assets under management.

Turning to Primary Health Properties, its share price could fall if interest rates rise. Because it’s a property company.

Given that each company has its risks, it wouldn’t actually be very smart to allocate all of a portfolio to just five stocks. If one or two names tanked, it could really hurt overall returns.

Generally speaking, it’s sensible to own at least 15-20 different names when investing in individual stocks. This can significantly reduce stock-specific risk.

Worth a closer look?

Going back to the five names though, I think they’re all worthy of further research today. I’ve selected them because they either offer value or defensiveness, alongside a high yield.

Of the five, one worth highlighting is Domino’s Pizza. It has the highest dividend coverage ratio (the ratio of earnings per share to dividends per share) at about 1.6, meaning that, in theory, its dividend is the most secure.

Other things to like include its strong brand and high level of profitability (its franchise model’s very profitable). These attributes often lead to good results from an investment perspective.

On the downside, consumer habits and preferences are changing. Weight-loss drugs are a risk here – reducing appetites and cravings.

Competition’s also high. Today, there are lots of great places to pick up a tasty pizza cheaply. Overall though, I believe Domino’s is worth a closer look. With analysts forecasting earnings per share of 18.1p this year, the price-to-earnings ratio’s under 10.

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But just because a stock is down, doesn’t necessarily mean it will go up again. How can we differentiate between undervalued companies suffering a minor setback — and those that might never recover?

Identifying good value

Lately, two big UK dividend names have been hammered and now sit close to 10‑year lows: WPP (LSE: WPP) and Domino’s Pizza (LSE:DOM).

On the surface, both offer tempting income, but for very different reasons. Think of them as two shops on your local high street: one struggling with a changing world, the other hit by rising costs and fussier customers.

Yet I believe they’re both well-positioned to bounce back. Here’s why.

A shifting ad landscape

WPP makes its money helping brands run ads across TV, billboards, social media and more. Its share price has dropped more than half in the last year as global ad spending has slowed and earnings have fallen.

Recent trading updates showed revenue shrinking and profits squeezed, as clients cut budgets and shifted to in‑house or cheaper options (such as AI). Subsequently, investors are wary about the company’s future. But it hasn’t given up, implementing an aggressive strategy to tackle the threat of AI.

With the share price having sunk so far, the yield has shot up towards double digits. But that big number comes with a catch: the payout ratio is very high and dividends have already been cut.

If its turnaround plan works and ad spending recovers, the current low price presents an opportunity. If not, further dividend cuts are still on the table.

This is a classic ‘high-risk/high-reward’ recovery play. Overall, I think it’s worth considering because its sheer size and brand familiarity give it a good chance of bouncing back.

Changing consumer habits

Domino’s is a different story: it runs the UK master franchise for the pizza brand people order on a rainy Friday night. Despite being a household name, the share price is down about 50% over the past year and is sitting at its lowest level in more than a decade.

Management has blamed weaker consumer demand, rising labour costs and higher bills for franchisees. As a result, it recently cut profit guidance, which understandably spooked the market. This has led to a notable rise in debt, adding to worries in a tougher, slower‑growing takeaway market.

On the income side, things look attractive. It offers a yield around 5.5%, with dividends covered by earnings and growing slowly over time. Plus, the core business is still profitable, with strong brand power, huge online ordering (around 90% of sales are digital), and scale advantages in dough, logistics and advertising.

If inflation eases and wage growth settles, margins could improve, and new menu ideas plus more stores might help profits recover.

The bottom line

For UK income investors, WPP’s low valuation and high yield is very attractive, but risky. It could be a value trap if the turnaround stalls.

Domino’s looks more like a solid takeaway favourite on sale. It has debt and competition risks, but with a steadier, better‑covered dividend that might be worth thinking about for a long‑term ISA or SIPP drip‑feed.

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