<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
     xmlns:media="http://search.yahoo.com/mrss/"
     xmlns:content="http://purl.org/rss/1.0/modules/content/"
     xmlns:wfw="http://wellformedweb.org/CommentAPI/"
     xmlns:dc="http://purl.org/dc/elements/1.1/"
     xmlns:atom="http://www.w3.org/2005/Atom"
     xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
     xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
    xmlns:company="http:/purl.org/rss/1.0/modules/company" xmlns:fool="http://fool.com/rss/extensions"     >

    <channel>
        <title>ME Group International (LSE:MEGP) Share Price, History, &amp; News | The Twelfth Magpie</title>
        <atom:link href="https://www.twelfthmagpie.com/tickers/lse-megp/feed/" rel="self" type="application/rss+xml" />
        <link>https://www.twelfthmagpie.com/tickers/lse-megp/</link>
        <description>Share Tips, Investing and Stock Market News</description>
        <lastBuildDate>Wed, 22 Jul 2026 19:00:00 +0000</lastBuildDate>
        <language>en-GB</language>
                <sy:updatePeriod>hourly</sy:updatePeriod>
                <sy:updateFrequency>1</sy:updateFrequency>
        <generator>https://wordpress.org/?v=7.0.2</generator>

<image>
	<url>https://www.twelfthmagpie.com/wp-content/uploads/2026/05/cropped-Magpie_Icon_Black_RGB-1-32x32.png</url>
	<title>ME Group International (LSE:MEGP) Share Price, History, &amp; News | The Twelfth Magpie</title>
	<link>https://www.twelfthmagpie.com/tickers/lse-megp/</link>
	<width>32</width>
	<height>32</height>
</image> 
            <item>
                                <title>£10,000 in either of these FTSE 250 gems could net around £800 in passive income. But which to pick?</title>
                <link>https://www.twelfthmagpie.com/2026/06/26/10000-in-either-of-these-ftse-250-gems-could-net-around-800-in-passive-income-but-which-to-pick/</link>
                                <pubDate>Fri, 26 Jun 2026 05:06:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1710015</guid>
                                    <description><![CDATA[<p>Mark Hartley pits two 8%-yielding FTSE 250 dividend stocks against each other. But when it comes to long-term income, which is the safer pick?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/26/10000-in-either-of-these-ftse-250-gems-could-net-around-800-in-passive-income-but-which-to-pick/">£10,000 in either of these FTSE 250 gems could net around £800 in passive income. But which to pick?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">As the race for jobs in what looks likely to be an Andy Burnham-led government gets under way, I thought I&#8217;d conduct a little challenge of my own. I&#8217;ve identified two <strong>FTSE 250</strong> dividend stocks with similar characteristics &#8212; each one costs around 100p per share and yields around 8%.</p>



<p class="wp-block-paragraph">On the surface they look similar income plays, but once I dig into the numbers, they tell very different stories. So which matters most if you’re hoping to live off these dividends for years?</p>



<h2 id="h-a-reliable-reit-vs-a-fast-growing-equipment-vendor" class="wp-block-heading">A reliable REIT vs a fast-growing equipment vendor</h2>


<div class="tmf-chart-multipleseries" data-title="Primary Health Prop. + ME Group International Plc Price" data-tickers="LSE:PHP LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph"></p>



<p class="wp-block-paragraph">I already own a few shares in the real estate investment trust (REIT)<strong> Primary Health Properties</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-php/">LSE: PHP</a>), but it never hurts to consider other options.</p>



<p class="wp-block-paragraph">It owns government-backed, long-lease healthcare facilities across the UK and Ireland. For 30 consecutive years it&#8217;s increased its dividend, with a current yield around 7.92% and a 2025 payout of 7.1p per share.</p>



<p class="wp-block-paragraph">But strict REIT tax rules means it currently pays out essentially all adjusted earnings as dividends. That suits investors who want maximum cash today, but it leaves limited room to reinvest or cushion any shocks.</p>



<p class="wp-block-paragraph"><em>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.</em></p>



<p class="wp-block-paragraph">In the opposite corner is <strong>ME Group International</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>), which runs instant-service equipment such as photobooths and self-service laundry machines across Europe.</p>



<p class="wp-block-paragraph">In 2025, it raised dividends 9.5% to 8.64p per share, representing 58% of earnings per share (EPS). That&#8217;s consistent with its policy of paying out at least 55% of profit and works out to a dividend yield of about 7.9%.</p>



<h2 id="h-profitability-and-valuation" class="wp-block-heading">Profitability and valuation</h2>



<p class="wp-block-paragraph">On profitability, ME Group earns a net margin around 17.9% and delivers <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/return-on-equity-and-return-on-capital-employed/" target="_blank" rel="noreferrer noopener">return on equity</a> (ROE) of 30.8%. Primary shows a higher net margin of 56.6% but a more modest ROE of 8.6% – typical for a leveraged property vehicle.</p>



<p class="wp-block-paragraph">Valuation also differs. Following a sharp price dip, ME Group now trades on a <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio of just 7.34. Meanwhile, Primary sits closer to 13.86 – so ME looks more like a bargain today.</p>



<p class="wp-block-paragraph">Balance sheets also matter for income durability. ME Group has net cash of £26.5m, a quick ratio of 1.17 and debt-to-equity around 0.25, pointing to comfortable liquidity and conservative borrowing.</p>



<p class="wp-block-paragraph">Primary’s debt is roughly in line with equity, with a current ratio about 0.5 and a quick ratio below 1, so it relies more on debt funding.</p>



<h2 id="h-side-by-side-comparison" class="wp-block-heading">Side-by-side comparison</h2>



<figure class="wp-block-table"><table><thead><tr><th>Metric</th><th>Primary Health</th><th>ME Group</th></tr></thead><tbody><tr><td>Dividend yield</td><td>7.92%</td><td>8.4%</td></tr><tr><td>Payout ratio</td><td>107.58%</td><td>58%</td></tr><tr><td>Dividend growth</td><td>2.9%</td><td>9.5%</td></tr><tr><td>ROE</td><td>8.6%</td><td>30.8%</td></tr><tr><td>Net margin</td><td>56.6%</td><td>17.9%</td></tr><tr><td>P/E ratio</td><td>13.86</td><td>7.34</td></tr><tr><td>Approximate annual income on £10k</td><td>£792</td><td>£840</td></tr></tbody></table></figure>



<h2 id="h-risk-comparison" class="wp-block-heading">Risk comparison</h2>



<p class="wp-block-paragraph">Primary’s cash flows depend on UK and Irish healthcare budgets, NHS policy and property valuation yields. Higher interest rates or political pressure on rents could squeeze returns, especially with leverage elevated after recent transactions.</p>



<p class="wp-block-paragraph">ME Group faces more commercial and regulatory risk: photobooth demand can be hit by rule changes, such as tighter German passport photo regulations. Plus, its growth plan assumes continued roll-out of laundry sites and new products.</p>



<h2 id="h-my-verdict" class="wp-block-heading">My verdict</h2>



<p class="wp-block-paragraph">For those aiming mainly for reliability, Primary’s long dividend track record and government-backed leases make it more defensive. Just keep in mind that high payout ratio and debt load.</p>



<p class="wp-block-paragraph">ME Group has stronger profitability with a lower valuation and payout ratio. That gives it more growth potential but only for investors happy to accept some operational and regulatory uncertainty.</p>



<p class="wp-block-paragraph">In my opinion, both are worth considering: Primary as the steadier income anchor, and ME as the higher-growth complement.</p>



<p class="wp-block-paragraph">This highlights a key aspect of diversification: a mix of dependability and risk can actually help stabilise income when markets get rough.</p>



<p class="wp-block-paragraph"><h2>Should you invest £5,000 in Primary Health Properties Plc right now?</h2>
<p>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.</p>
<p>And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Primary Health Properties Plc made the list?</p>
<div class="wp-block-custom-block-collection-cta-button">
	<a id="ttm-ap-iot" href="https://www.twelfthmagpie.com/int-free-best-buy-now/" style="background-color:#5fa85d; width:fit-content; display:inline-flex; cursor:pointer; justify-content:center; align-items:center; transition:all 0.3s ease;border-width:0px; border-style:solid; border-color:#000000; border-top-left-radius:4px; border-top-right-radius:4px; border-bottom-right-radius:4px; border-bottom-left-radius:4px; --hover-background-color:#358832; --pressed-background-color:#0cbf06; padding-top:12px; padding-right:24px; padding-bottom:12px; padding-left:24px; margin-top:0px; margin-right:auto; margin-bottom:0px; margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06" ><p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">See The Six Stocks</p></a>
</div>
	
<style>
.custom-cta-button p {
  margin-bottom: 0 !important;
  color:#cc0000;
}

div.entry-footer div.textwidget div.braze-content-card div.wp-block-custom-block-collection-presentational-card {
padding: 0 !important;
margin: 0 !important;
}
</style></p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<p class="wp-block-paragraph"><em>Mark Hartley owns shares in Primary Health Properties.</em></p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/26/10000-in-either-of-these-ftse-250-gems-could-net-around-800-in-passive-income-but-which-to-pick/">£10,000 in either of these FTSE 250 gems could net around £800 in passive income. But which to pick?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>With yields of 8.4% and 7.9%, are these FTSE 250 shares perfect for a Stocks and Shares ISA?</title>
                <link>https://www.twelfthmagpie.com/2026/06/23/with-yields-of-8-4-and-7-9-are-these-ftse-250-shares-perfect-for-a-stocks-and-shares-isa/</link>
                                <pubDate>Tue, 23 Jun 2026 13:03:08 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1707579</guid>
                                    <description><![CDATA[<p>FTSE 100 dividend yields might be lower, but there are plenty of smaller-cap companies for Stocks and Shares ISA investors to investigate.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/23/with-yields-of-8-4-and-7-9-are-these-ftse-250-shares-perfect-for-a-stocks-and-shares-isa/">With yields of 8.4% and 7.9%, are these FTSE 250 shares perfect for a Stocks and Shares ISA?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">I&#8217;ve traditionally focused on the <strong>FTSE 100</strong> to find candidates for my Stocks and Shares ISA. And I generally go for picks with strong long-term dividend prospects &#8212; then I reinvest my dividends every year.</p>



<p class="wp-block-paragraph">But the top UK index now averages only 3% in dividend yields. And I see what I think could be some cracking long-term ISA stocks in the <strong>FTSE 250</strong>. I&#8217;m going to highlight two of them today.</p>



<h2 id="h-photos-and-laundry" class="wp-block-heading">Photos and Laundry</h2>


<div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value="percent"></div>



<p class="wp-block-paragraph"><strong>ME Group International</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>) is in the business of photo booths, laundry machines, vending machines, and other automated selling equipment. Investors have been offloading the shares, pushing the price down. And the big question for me is &#8212; what caused its 27% drop on 1 June.</p>



<p class="wp-block-paragraph">An obvious answer is that there was a profit warning that day due to weakening revenue, &#8220;<em>particularly in the French photobooth and laundry businesses</em>.&#8221; Management blamed it on &#8220;<em>a shift in consumer spending patterns driven by lower consumer confidence due to the ongoing conflict in the Middle East.</em>&#8220;</p>



<p class="wp-block-paragraph">The board also downgraded its full-year <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-profit-and-loss-account/" target="_blank" rel="noreferrer noopener">profit before tax</a> guidance to between £69m and £74m.</p>



<p class="wp-block-paragraph">This disappointment comes on the back of problems with regulatory changes in Germany, meaning its photo booths aren&#8217;t suitable for passport photos &#8212; a problem that new machines will hopefully solve.</p>



<p class="wp-block-paragraph">So what do I think? I feel bearish investors have overreacted. The current dangers are clear. But a forecast dividend yield of 8.4% and price-to-earnings (P/E) ratio under eight makes me believe there&#8217;s a fair bit of safety in today&#8217;s valuation.</p>



<h2 id="h-property-casualty" class="wp-block-heading">Property casualty</h2>


<div class="tmf-chart-singleseries" data-title="Primary Health Prop. Price" data-ticker="LSE:PHP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph"><strong>Primary Health Properties</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-php/">LSE: PHP</a>) has been recovering some of its five-year share price slide in the past couple of years. But we&#8217;re still looking at a robust 7.9% forecast dividend yield.</p>



<p class="wp-block-paragraph">It owns and operates medical facilities, including medical centres and GP clinics. And it counts the NHS as a major long-term client. I&#8217;d say that brings benefits and risk. It does mean dependable long-term clients. But a company like this is also at the mercy of NHS spending on privately-owned facilities.</p>



<p class="wp-block-paragraph">I reckon that&#8217;s probably the reason for the modest investor interest. At the current price, the shares trade on a discount to net asset value close to 20%.</p>



<p class="wp-block-paragraph">Primary Health is structured as <a href="https://www.twelfthmagpie.com/investing-basics/getting-started-in-investing/investing-in-reits-in-the-uk/" target="_blank" rel="noreferrer noopener">real estate investment trust</a> (REIT), which offers tax concessions on qualifying rental income. The other side of this is that a trust must distribute at least 90% of that income to shareholders. Partly as a result, 2026 is expected to bring the 30th consecutive annual dividend rise.</p>



<p class="wp-block-paragraph"><em>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.</em></p>



<h2 id="h-time-to-buy" class="wp-block-heading">Time to buy?</h2>



<p class="wp-block-paragraph">These both carry their own risks. But the risks are very different. And the two companies are in very different sectors. Together, that leads me to see them as strong possibilities to consider for a diversified Stocks and Shares ISA.</p>



<p class="wp-block-paragraph">Primary Health Properties in particular has long been on my list of potentially perfect candidates. It just hasn&#8217;t quite made it to the top.</p>



<p class="wp-block-paragraph"><h2>Should you invest £5,000 in ME Group International right now?</h2>
<p>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.</p>
<p>And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if ME Group International made the list?</p>
<div class="wp-block-custom-block-collection-cta-button">
	<a id="ttm-ap-iot" href="https://www.twelfthmagpie.com/int-free-best-buy-now/" style="background-color:#5fa85d; width:fit-content; display:inline-flex; cursor:pointer; justify-content:center; align-items:center; transition:all 0.3s ease;border-width:0px; border-style:solid; border-color:#000000; border-top-left-radius:4px; border-top-right-radius:4px; border-bottom-right-radius:4px; border-bottom-left-radius:4px; --hover-background-color:#358832; --pressed-background-color:#0cbf06; padding-top:12px; padding-right:24px; padding-bottom:12px; padding-left:24px; margin-top:0px; margin-right:auto; margin-bottom:0px; margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06" ><p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">See The Six Stocks</p></a>
</div>
	
<style>
.custom-cta-button p {
  margin-bottom: 0 !important;
  color:#cc0000;
}

div.entry-footer div.textwidget div.braze-content-card div.wp-block-custom-block-collection-presentational-card {
padding: 0 !important;
margin: 0 !important;
}
</style></p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<p class="wp-block-paragraph"><em>Alan Oscroft does not hold any positions in the companies mentioned.</em></p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/23/with-yields-of-8-4-and-7-9-are-these-ftse-250-shares-perfect-for-a-stocks-and-shares-isa/">With yields of 8.4% and 7.9%, are these FTSE 250 shares perfect for a Stocks and Shares ISA?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>£250 buys 227 shares in this 7.9%-yielding income stock!</title>
                <link>https://www.twelfthmagpie.com/2026/06/21/250-buys-227-shares-in-this-7-9-yielding-income-stock/</link>
                                <pubDate>Sun, 21 Jun 2026 06:21:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1705823</guid>
                                    <description><![CDATA[<p>Got a small lump sum? Zaven Boyrazian explores an overlooked FTSE 250 income stock offering a juicy 7.9% yield that's still growing!</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/21/250-buys-227-shares-in-this-7-9-yielding-income-stock/">£250 buys 227 shares in this 7.9%-yielding income stock!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">Some of the best&nbsp;income stocks&nbsp;are often those hiding in plain sight. And right now, tucked away in the <strong>FTSE 250</strong>, <strong>ME Group International </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE:MEGP</a>) is quietly offering a 7.9% dividend yield at a share price of around 109p.</p>



<p class="wp-block-paragraph">For just £250, an investor can snap up 229 shares and unlock £19.79 of annual passive income immediately. That&#8217;s not a life-changing sum, but as a starting point for a dividend-focused portfolio it&#8217;s a genuinely compelling one.</p>



<p class="wp-block-paragraph">So should I be rushing to buy?</p>



<h2 id="h-what-does-me-group-actually-do" class="wp-block-heading">What does ME Group actually do?</h2>



<p class="wp-block-paragraph">As a quick introduction, ME Group&#8217;s an international operator of over 49,000 automated self-service vending machines across 16 countries. Think photobooths in supermarkets, unattended launderettes in high-footfall locations, and digital printing kiosks.</p>



<p class="wp-block-paragraph">Is it a fancy business? No. But it&#8217;s nonetheless a highly cash-generative one, enjoying steady, recurring cash flows from machines that require minimal maintenance and near-zero ongoing operational costs.</p>



<p class="wp-block-paragraph"><div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>
</p>



<h2 id="h-is-the-yield-safe" class="wp-block-heading">Is the yield safe?</h2>



<p class="wp-block-paragraph">Despite the cash-generative nature of this business, investors have seemingly been reluctant to load up on shares, resulting in the high yield we see today. And to be fair, there&#8217;s some cause for caution.</p>



<p class="wp-block-paragraph">Photobooth revenue fell 4% last year, hit by a regulatory change in Germany requiring passport photos to be taken in citizens&#8217; offices rather than booths. This impact was only compounded by a one-off printer supplier issue. And together, these knocked £3m off revenue and crimped Photo.ME <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/what-is-ebitda/">EBITDA by 3.7%.</a></p>



<p class="wp-block-paragraph">But that&#8217;s only half the story. The Laundry arm delivered a far more impressive performance. Here, segmental revenues surged 17.3% to £112.4m, EBITDA climbed 18.1% to £55.5m, and the company installed a record 1,145 net machines in the year, bringing the total laundry estate to 7,607 units.</p>



<p class="wp-block-paragraph">In fact, the division now accounts for 46.1% of total group EBITDA, up from 41.1% in 2024, and this shift is still accelerating.</p>



<p class="wp-block-paragraph">The result is that, even with regulatory hurdles in Germany, the group nonetheless posted a record <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">pre-tax profit</a> of £78.2m, paving the way for a 9.5% dividend hike to 8.64p per share. And with earnings covering this payout by 1.7 times, this seems like a no-brainer income stock to buy. So what&#8217;s the catch?</p>



<h2 id="h-where-s-the-risk" class="wp-block-heading">Where&#8217;s the risk?</h2>



<p class="wp-block-paragraph">The German photobooth headwind isn&#8217;t going away quickly. Management expects the drag to continue through the current financial year before a new generation of compliant booths, integrating biometric and AI capabilities, begins rolling out in the second half of 2026.</p>



<p class="wp-block-paragraph">Until that rollout proves successful at scale, photobooth revenue will remain a source of ongoing uncertainty.</p>



<p class="wp-block-paragraph">As for the Laundry segment, that too has its weak spots. Installing the machines comes at significant upfront capital costs. And the business remains on the hook for the electricity and water needed for the machines to operate, which can directly impact profit margins.</p>



<p class="wp-block-paragraph">Put simply, if the utility costs of running its machines suddenly spike, earnings could struggle to keep up with their current pace.</p>



<p class="wp-block-paragraph">So what should investors make of all this? Personally, I think too many investors are focused on the regulatory challenges surrounding this business. While this is a real headwind, it&#8217;s ultimately a short-term one.</p>



<p class="wp-block-paragraph">As such, I think this income stock could be worth a closer look for long-term investors.</p>



<p class="wp-block-paragraph"><h2>Should you invest £5,000 in ME Group International right now?</h2>
<p>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.</p>
<p>And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if ME Group International made the list?</p>
<div class="wp-block-custom-block-collection-cta-button">
	<a id="ttm-ap-iot" href="https://www.twelfthmagpie.com/int-free-best-buy-now/" style="background-color:#5fa85d; width:fit-content; display:inline-flex; cursor:pointer; justify-content:center; align-items:center; transition:all 0.3s ease;border-width:0px; border-style:solid; border-color:#000000; border-top-left-radius:4px; border-top-right-radius:4px; border-bottom-right-radius:4px; border-bottom-left-radius:4px; --hover-background-color:#358832; --pressed-background-color:#0cbf06; padding-top:12px; padding-right:24px; padding-bottom:12px; padding-left:24px; margin-top:0px; margin-right:auto; margin-bottom:0px; margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06" ><p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">See The Six Stocks</p></a>
</div>
	
<style>
.custom-cta-button p {
  margin-bottom: 0 !important;
  color:#cc0000;
}

div.entry-footer div.textwidget div.braze-content-card div.wp-block-custom-block-collection-presentational-card {
padding: 0 !important;
margin: 0 !important;
}
</style></p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<p class="wp-block-paragraph"><em>Zaven Boyrazian does not hold any positions in the companies mentioned.</em></p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/21/250-buys-227-shares-in-this-7-9-yielding-income-stock/">£250 buys 227 shares in this 7.9%-yielding income stock!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Here’s how investors could target £12,959 a year in dividends from this hidden gem of an income share…</title>
                <link>https://www.twelfthmagpie.com/2026/05/27/heres-how-investors-could-target-12959-a-year-in-dividends-from-this-hidden-gem-of-an-income-share/</link>
                                <pubDate>Wed, 27 May 2026 08:06:56 +0000</pubDate>
                <dc:creator><![CDATA[Simon Watkins]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1696447</guid>
                                    <description><![CDATA[<p>This overlooked FTSE income share is quietly delivering the sort of strong long‑term cash generation and rising dividends that savvy investors look for. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/05/27/heres-how-investors-could-target-12959-a-year-in-dividends-from-this-hidden-gem-of-an-income-share/">Here’s how investors could target £12,959 a year in dividends from this hidden gem of an income share…</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">Most investors focus on the major <strong>FTSE</strong> names when hunting for a big, reliable income share. But some of the best opportunities sit quietly in the mid‑cap world, with <strong>ME Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>) being one of them, in my view.</p>



<p class="wp-block-paragraph">It runs the photo booths, laundry pods and ID kiosks we all walk past without noticing. Yet, they generate remarkably steady cash flows that are forecast to keep rising.</p>



<p class="wp-block-paragraph">It is basically a quiet empire of small machines that never sleep and never ask for a pay rise. But these machines are not of the ‘speculative tech stock with an overblown valuation to match’ variety. Instead, this is a vending machine conglomerate with a balance sheet as crisp as freshly ironed Egyptian cotton.</p>



<p class="wp-block-paragraph">So what sort of income could we be looking at over the long term?</p>



<h2 id="h-what-are-the-key-growth-drivers" class="wp-block-heading"><strong>What are the key growth drivers?</strong></h2>



<p class="wp-block-paragraph">A risk for ME Group is a drop-off in footfall in shopping centres and transport hubs due to cost-of-living pressures. Another is faster adoption of digital‑only ID systems that could require extra investment to keep its booths compliant.</p>



<p class="wp-block-paragraph">Nevertheless, analysts forecast the firm’s profits will rise by 8.5% a year on average until end-2028 at minimum. And this is the powerhouse of dividend and share price gains for any firm.</p>



<p class="wp-block-paragraph">Its full-year 2025 results released in March look supportive of this view. They showed another record year, with profit before tax up 7.1% year on year to £78.2m. This illustrated how improved operational leverage from a larger installed base is boosting margins. Once a booth or laundry pod is installed, extra revenue converts to profit at a high rate, driving strong cash‑generation potential. <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/what-is-ebitda/">EBITDA increased</a> 6% to £120.4m, driven by a 17.7%rise in laundry machines revenue across Europe.</p>



<p class="wp-block-paragraph">Meanwhile, group revenue edged up 2.4% to £315.4m. This was supported by upgrades to next‑generation photo booths designed to meet tightening ID standards — another structural driver of future earnings.</p>


<div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="2021-05-27" data-end-date="2026-05-27" data-comparison-value=""></div>



<h2 id="h-so-how-much-dividend-income-potential" class="wp-block-heading"><strong>So how much dividend income potential?</strong></h2>



<p class="wp-block-paragraph">ME Group has raised its dividends from 7.39p in 2023 to 8.64p last year.&nbsp; This gives a current dividend yield of 5.9% &#8212; nearly double the <strong>FTSE 100</strong>’s present 3.1% average.</p>



<p class="wp-block-paragraph">Of course, dividend returns can go down as well as up, given fluctuations in share price and annual dividend. Nonetheless, analysts expect ME Group’s dividend yield to rise to 6.2% this year, 6.7% next year and 7.3% in 2028.</p>



<p class="wp-block-paragraph">So, a £20,000 holding in the firm could make investors £21,410 in dividends after 10 years and £157,523 after 30 years.</p>



<p class="wp-block-paragraph">The figures are based on the forecast 7.3% as an average and on <a href="https://www.twelfthmagpie.com/investing-basics/the-miracle-of-compound-returns/">dividend compounding</a> being used. This simply involves the dividends being reinvested in the stock, which has a supercharging effect on the returns.</p>



<p class="wp-block-paragraph">At the end of 30 years, the holding’s total value would be £177,523. And that would generate a yearly income of £12,959!</p>



<h2 id="h-my-investment-view" class="wp-block-heading"><strong>My investment view</strong></h2>



<p class="wp-block-paragraph">ME Group will never be the loudest or most glamorous stock in the market. But its record results and rising dividends give it real substance.</p>



<p class="wp-block-paragraph">The business has multiple growth engines, strong cash generation and a valuation that still looks modest for what it delivers.</p>



<p class="wp-block-paragraph">For income‑focused investors, that combination makes it a company well worth considering, in my view.</p>



<p class="wp-block-paragraph"><h2>Should you invest £5,000 in ME Group International right now?</h2>
<p>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.</p>
<p>And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if ME Group International made the list?</p>
<div class="wp-block-custom-block-collection-cta-button">
	<a id="ttm-ap-iot" href="https://www.twelfthmagpie.com/int-free-best-buy-now/" style="background-color:#5fa85d; width:fit-content; display:inline-flex; cursor:pointer; justify-content:center; align-items:center; transition:all 0.3s ease;border-width:0px; border-style:solid; border-color:#000000; border-top-left-radius:4px; border-top-right-radius:4px; border-bottom-right-radius:4px; border-bottom-left-radius:4px; --hover-background-color:#358832; --pressed-background-color:#0cbf06; padding-top:12px; padding-right:24px; padding-bottom:12px; padding-left:24px; margin-top:0px; margin-right:auto; margin-bottom:0px; margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06" ><p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">See The Six Stocks</p></a>
</div>
	
<style>
.custom-cta-button p {
  margin-bottom: 0 !important;
  color:#cc0000;
}

div.entry-footer div.textwidget div.braze-content-card div.wp-block-custom-block-collection-presentational-card {
padding: 0 !important;
margin: 0 !important;
}
</style></p>



<hr class="wp-block-separator has-alpha-channel-opacity" />



<p class="wp-block-paragraph"><em>Simon Watkins does not hold any positions in the companies mentioned.</em></p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/05/27/heres-how-investors-could-target-12959-a-year-in-dividends-from-this-hidden-gem-of-an-income-share/">Here’s how investors could target £12,959 a year in dividends from this hidden gem of an income share…</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Here’s how Warren Buffett built multi-billion-dollar passive income streams</title>
                <link>https://www.twelfthmagpie.com/2026/05/09/heres-how-warren-buffett-built-multi-billion-dollar-passive-income-streams/</link>
                                <pubDate>Sat, 09 May 2026 20:09:00 +0000</pubDate>
                <dc:creator><![CDATA[Christopher Ruane]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1687930</guid>
                                    <description><![CDATA[<p>Warren Buffett's set up passive income streams totalling billions of dollars annually. So what could someone with a modest amount of spare cash learn from this?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/05/09/heres-how-warren-buffett-built-multi-billion-dollar-passive-income-streams/">Here’s how Warren Buffett built multi-billion-dollar passive income streams</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">When it comes to passive income, most people could learn a thing or ten from billionaire investor Warren Buffett. Buying shares on behalf of his investment vehicle <strong>Berkshire Hathaway</strong> over decades, he set up passive income streams that now earn the business billions of dollars a year.</p>



<p class="wp-block-paragraph">In fact, converting the gains to GBP, Berkshire earns over £100 a <span style="text-decoration: underline">second</span> in passive income from dividends alone.</p>



<p class="wp-block-paragraph">So even someone with just a few hundred pounds to spare can draw some inspiration when it comes to earning passive income.</p>



<h2 class="wp-block-heading" id="h-taking-the-long-view">Taking the long view</h2>



<p class="wp-block-paragraph">For example, I said <a href="https://www.twelfthmagpie.com/investing-basics/great-investors/warren-buffett/">Buffett built those dividend streams</a> over the course of decades. Choosing to take a long-term approach to investing can pay off handsomely.</p>



<p class="wp-block-paragraph">Say, for example, a share has a dividend yield of 5% and the investor chooses to reinvest (<a href="https://www.twelfthmagpie.com/investing-basics/the-miracle-of-compound-returns/">compound</a>) it rather than taking it out as cash.</p>



<p class="wp-block-paragraph">Compounding £250 at 5% annually, it should be worth over £400 after a decade and around £678 after 20 years. This approach has worked even better in some cases for Buffett, as shares he bought like <strong>Coca-Cola</strong> have <a href="https://www.twelfthmagpie.com/personal-finance/share-dealing/guides/what-is-a-dividend-aristocrat/">increased their dividend annually for decades</a>.</p>



<p class="wp-block-paragraph">At any point, the investor could choose to stop compounding and draw any dividends as cash.</p>



<h2 class="wp-block-heading" id="h-focus-on-future-free-cash-flows">Focus on future free cash flows</h2>



<p class="wp-block-paragraph">When looking for shares to buy, investors sometimes focus on profits or how popular the business is. Those factors can play a role. Buffet typically focuses on profitable not loss-making businesses, while a business’s popularity, thanks to things like its brand or proprietary technology, can help give it a competitive advantage.</p>



<p class="wp-block-paragraph">Buffett calls that a “<em>moat</em>” (it helps repel rivals) and his investment in <strong>Apple</strong> is an example of both factors at play.</p>



<p class="wp-block-paragraph">But earnings are an accounting concept. They can include non-cash items. So when it comes to funding dividends, they are not necessarily a reliable guide to how a company might support its dividend.</p>



<p class="wp-block-paragraph">By contrast, a company’s accounts provide <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-cash-flow-statement/">a detailed breakdown of its cash flows</a>. They show the hard, cold <span style="text-decoration: underline">cash</span> coming in and going out of the door. That matters when it comes to funding dividends.</p>



<p class="wp-block-paragraph">It is important not just to assess current free cash flows, but also what they might look like in future. After all, dividends are never guaranteed to last.</p>



<h2 class="wp-block-heading" id="h-buy-into-brilliant-businesses">Buy into brilliant businesses</h2>



<p class="wp-block-paragraph">Some companies can support a strong dividend for a while but have ropier long-term prospects. </p>



<p class="wp-block-paragraph">One share I think investors should consider for its long-term passive income potential is <strong>ME Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>).</p>



<p class="wp-block-paragraph">From <em>Photo-Me </em>booths to orange juice machines and garage forecourt laundrettes, the multinational company’s focus on vending machines is highly cash generative. It helps support a dividend yield that stands at 5.7%.</p>



<p class="wp-block-paragraph">Not only that, but the current share price is just 10 times earnings. I see that as an attractive valuation.</p>


<div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Its huge network of vending machines gives the <strong>FTSE 250 </strong>company a competitive advantage. For a rival to set up an equivalent network would be prohibitively expensive. And that gives it a substantial moat.</p>



<p class="wp-block-paragraph">Still, with fewer shoppers visiting high streets, there is a risk that physical vending machines could decline in usage over time. From a long-term perspective though, I like the proven business model and cash generation prospects.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/05/09/heres-how-warren-buffett-built-multi-billion-dollar-passive-income-streams/">Here’s how Warren Buffett built multi-billion-dollar passive income streams</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>How big does an ISA need to be when aiming for a £500 monthly second income?</title>
                <link>https://www.twelfthmagpie.com/2026/04/16/how-big-does-an-isa-need-to-be-when-aiming-for-a-500-monthly-second-income/</link>
                                <pubDate>Thu, 16 Apr 2026 07:05:00 +0000</pubDate>
                <dc:creator><![CDATA[Christopher Ruane]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1676866</guid>
                                    <description><![CDATA[<p>What sort of money would someone need to put into dividend shares if they were serious about targeting a £500 second income per month?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/04/16/how-big-does-an-isa-need-to-be-when-aiming-for-a-500-monthly-second-income/">How big does an ISA need to be when aiming for a £500 monthly second income?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">Just how much money does it take to make money? Or, put another way, if someone wanted to target a second income of £500 a month on average without working for it, what sort of investment in dividend shares might help them hit that goal?</p>



<h2 class="wp-block-heading" id="h-dividend-yield-important-but-be-careful">Dividend yield: important, but be careful</h2>



<p class="wp-block-paragraph">The answer to that question depends on the average dividend yield their ISA earns.</p>



<p class="wp-block-paragraph">Dividend yield is basically how much someone earns in dividends annually, expressed as a percentage of what they paid for the shares that pay them.</p>



<p class="wp-block-paragraph">So, take the £500 as an example. That is £6k per year. </p>



<p class="wp-block-paragraph">At a 10% yield, that would require an ISA worth £60k. Halve the yield and the requirement doubles: at a 5% yield, the ISA would need to be £120k.</p>



<p class="wp-block-paragraph">That makes it sound like the way to go could be to buy <a href="https://www.twelfthmagpie.com/investing-basics/the-high-yield-portfolio/">high-yielding shares</a>. </p>



<p class="wp-block-paragraph">But looking out the window today and seeing that today is sunny does not automatically mean the weather will be sunny a month from now. </p>



<p class="wp-block-paragraph">Similarly, historic dividend performance can tell us something about how a company’s business has performed in the past – but is no guarantee it will do so in future.</p>



<p class="wp-block-paragraph">I try to look at <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-cash-flow-statement/">how much spare cash a company looks set to generate</a> in future. </p>



<p class="wp-block-paragraph">That is a judgement and it could be proved wrong: even the best businesses can run into unforeseeable difficulties. Diversifying the ISA across different shares can help reduce the impact of such events on the second income, but it is also important to focus on the quality of the shares one buys.</p>



<h2 class="wp-block-heading" id="h-setting-a-realistic-target">Setting a realistic target</h2>



<p class="wp-block-paragraph">If 10% seems unrealistic (no <strong>FTSE 100 </strong>share currently offers such a yield although some <strong>FTSE 250</strong> ones do), what about 5%?</p>



<p class="wp-block-paragraph">It is well above the current yield of either of those indexes, but I do see it as a realistic target in today’s market.</p>



<p class="wp-block-paragraph">I said above that would make a <a href="https://www.twelfthmagpie.com/personal-finance/share-dealing/stocks-and-shares-isa/">Stocks and Shares ISA</a> worth £120k. But that does not need to be a lump sum.</p>



<p class="wp-block-paragraph">Someone could start from nothing and build up the ISA to that size through regular contributions, perhaps speeding things up by initially <a href="https://www.twelfthmagpie.com/investing-basics/the-miracle-of-compound-returns/">compounding (reinvesting) dividends</a>.</p>



<h2 class="wp-block-heading" id="h-why-not-consider-this-dividend-share">Why not consider this dividend share?</h2>



<p class="wp-block-paragraph">One share I think investors ought to consider for its dividend potential is <strong>ME Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>).</p>



<p class="wp-block-paragraph">After a 22% share price fall over the past year, the operator of Photo-Me booths sells for just 10 times earnings and offers a 5.8% dividend yield. I see that as attractive.</p>



<p class="wp-block-paragraph">Demand for passport photos and mementos is proving more durable in the digital age than some people expected, although long-term decline in photo booth use is a risk for the FTSE 250 company.</p>



<p class="wp-block-paragraph">Fortunately, it has many other strings to its bow, from laundry machines at garages to orange juice makers in some of the many markets in which it operates globally.</p>


<div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">This is a cash generative business, which can be good news for dividends. </p>



<p class="wp-block-paragraph">A recent delay in last year’s results unnerved the City. But when published, they revealed a 9% uplift in cash generated from operations, to over £2m per week on average. The annual dividend per share was boosted 10%.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/04/16/how-big-does-an-isa-need-to-be-when-aiming-for-a-500-monthly-second-income/">How big does an ISA need to be when aiming for a £500 monthly second income?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>Is the FTSE 250 seriously undervalued?</title>
                <link>https://www.twelfthmagpie.com/2024/10/07/is-the-ftse-250-seriously-undervalued/</link>
                                <pubDate>Mon, 07 Oct 2024 12:59:28 +0000</pubDate>
                <dc:creator><![CDATA[Christopher Ruane]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1399288</guid>
                                    <description><![CDATA[<p>The past five years have seen weaker growth in the FSTE 250 index than the FTSE 100. What's going on -- and might it offer this writer an opportunity?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/10/07/is-the-ftse-250-seriously-undervalued/">Is the FTSE 250 seriously undervalued?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">One argument for investing in medium-sized companies is that they have more opportunities for growth than large, mature ones. Looking at the five-year performance of the <strong>FTSE 100</strong> and <strong>FTSE 250</strong> indexes though, this is not immediately obvious. During that time, the leading index of large blue-cap companies has grown by 14.2% while the secondary one is up just 3.6%.</p>



<p class="wp-block-paragraph">Could that be because of some systemic problem with the sorts of companies seen in the FTSE 250? Or might it point to an undervaluation problem?</p>



<h2 class="wp-block-heading" id="h-quality-street-or-dead-end-alley">Quality street or dead-end alley?</h2>



<p class="wp-block-paragraph">Starting with the first possible explanation, there may be something to be said for the idea that the FTSE 250 contains more than a few fairly uninspiring companies.</p>



<p class="wp-block-paragraph">We often talk about the index of medium-sized companies as if they are all growing and might yet enter the larger peer. But the opposite is also true. Once a company’s market capitalisation declines to the point where it no longer merits a place in the FTSE 100, it gets relegated to the &#8216;second division&#8217;. In this case, that is the FTSE 250.</p>



<p class="wp-block-paragraph">So the FTSE 250 contains struggling former FTSE 100 members like <strong>Ocado</strong> (down 31% in the past year) and <strong>Burberry </strong>(down a whopping 64% in the past year). </p>



<p class="wp-block-paragraph">Sure, there are companies with strong growth prospects in there. But it is a mixed bag.</p>



<h2 class="wp-block-heading" id="h-is-there-a-valuation-gap-and-will-it-ever-close">Is there a valuation gap – and will it ever close?</h2>



<p class="wp-block-paragraph">That does not necessarily bother me though, as I tend to <a href="https://www.twelfthmagpie.com/personal-finance/share-dealing/guides/should-you-invest-in-individual-shares-or-funds/">buy individual shares</a> rather than tracker funds.</p>



<p class="wp-block-paragraph">I see arguments for both approaches, but buying an individual share can sometimes mean I do well even when <a href="https://www.twelfthmagpie.com/investing-basics/isas-and-investment-funds/tracker-funds-and-index-trackers/">the index</a> of which that share is a member fares poorly.</p>



<p class="wp-block-paragraph">A number of FTSE 250 shares look undervalued relative to what I see as their long-term potential.  But that does not mean those shares will necessarily move up closer to what I see as fair value. One reason is that some investors may think the shares deserve a discount given the typically smaller size of the firms in the 250 compared to their Footsie peers.</p>



<h2 class="wp-block-heading" id="h-looking-for-long-term-value">Looking for long-term value</h2>



<p class="wp-block-paragraph">But I see others as very promising. Take <strong>ME Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>) as an example. The operator of Photo-Me booths and similar vending machines worldwide, the company yields over 4%. Its <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings ratio</a> of 14 looks reasonable to me given what I see as strong business growth prospects.</p>



<p class="wp-block-paragraph">Last year revenues grew 5% while post-tax profit grew 11%. Operating machines that conveniently provide what people need just when they need it can be a lucrative line of business. Last year, ME Group’s net profit margin was an impressive 15%.</p>


<div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">As we saw during the pandemic, any unexpected drop in town centre and shopping centre visitor numbers poses a significant risk to the company’s revenues and profits. But with a proven business model and limited competition, I see ME Group as a share investors should consider buying.</p>



<p class="wp-block-paragraph">In the past five years, the share has more than doubled.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/10/07/is-the-ftse-250-seriously-undervalued/">Is the FTSE 250 seriously undervalued?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>2 dividend shares with a price below £2 and a yield above 4.3%</title>
                <link>https://www.twelfthmagpie.com/2024/07/17/2-dividend-shares-with-a-price-below-2-and-a-yield-above-4-3/</link>
                                <pubDate>Wed, 17 Jul 2024 09:56:00 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1335930</guid>
                                    <description><![CDATA[<p>Jon Smith applies his stock market filters for dividend shares and finds two he feels could be worthy inclusions in his portfolio.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/07/17/2-dividend-shares-with-a-price-below-2-and-a-yield-above-4-3/">2 dividend shares with a price below £2 and a yield above 4.3%</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">I&#8217;m very specific with what I&#8217;m looking for from the stock market. I apply different screening filters for stocks all the time. At the moment, I&#8217;m on the hunt for dividend shares with a yield above the <strong>FTSE 250</strong> and <strong>FTSE 100</strong> average. At the same time, I&#8217;m looking for ideas with a share price below £2. Here&#8217;s what I&#8217;ve found.</p>



<h2 class="wp-block-heading" id="h-it-s-all-about-me">It&#8217;s all about ME</h2>



<p class="wp-block-paragraph">The first stock is <strong>ME Group International </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE:MEGP</a>). The FTSE 250 firm&#8217;s known for its automated photo-booths, printing kiosks and other vending solutions. At the moment the stock trades at 180p and has a <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">dividend yield</a> of 4.33%.</p>



<p class="wp-block-paragraph">It&#8217;s not just the income side that&#8217;s appealing to me. Over the past year, the share price has jumped by 8%. </p>



<p class="wp-block-paragraph">Part of the increase in the dividend and the share price relates to the strong performance from 2023. The report hailed <em>&#8220;a year of record financial performance&#8221;</em>. This was driven by various factors. For example, it expanded abroad in Australia. Further, it launched new partnerships with Central Co-op and Morrisons.</p>



<p class="wp-block-paragraph">The future looks good, with a modernisation push already under way on existing products. Even with this, the profitability shouldn&#8217;t be hindered, so dividends aren&#8217;t under threat. In terms of risks, I&#8217;d say that it needs to keep focusing on diversifying away from photo-booths and similar machines, as demand for these more traditional services could fade.</p>


<div class="tmf-chart-multipleseries" data-title="ME Group International Plc + Lloyds Banking Group plc Price" data-tickers="LSE:MEGP LSE:LLOY" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-low-share-price-high-income">Low share price, high income</h2>



<p class="wp-block-paragraph">Another idea is <strong>Lloyds Banking Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-lloy/">LSE:LLOY</a>). It might take some a while to process, but the Lloyds share price is less than £1. In fact, at 58p, it has the lowest share price in the entire FTSE 100.</p>



<p class="wp-block-paragraph">But there&#8217;s a big difference between having a low share price and <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/" target="_blank" rel="noreferrer noopener">being undervalued</a>. A stock could trade at £1,000 and be undervalued. When it comes to the bank, the 31% rally over the past year means that, in my eyes, it&#8217;s fairly valued. However, I&#8217;m looking at this from the income side right now.</p>



<p class="wp-block-paragraph">A dividend yield of 4.72% is very healthy, and it has been above 5% for most of the past year. The dividend per share payments have been increasing, from 2p in 2021 to 2.4p in 2022 and 2.76p over the last year. This is due to boosted earnings coming out of the pandemic, with higher interest rates also helping the company.</p>



<p class="wp-block-paragraph">Looking forward, it&#8217;s true that interest rate cuts wont be helpful. This is a risk. However, I do think this could be offset by the positive sentiment from consumers. Lower interest rates should make them spend more, able to afford mortgages, and raise confidence to take out loans. All of this should make the bank money.</p>



<p class="wp-block-paragraph">I like both stocks, and when I get some more free cash will look to allocate it to these ideas.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/07/17/2-dividend-shares-with-a-price-below-2-and-a-yield-above-4-3/">2 dividend shares with a price below £2 and a yield above 4.3%</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>This former penny share has quadrupled. Could it go higher?</title>
                <link>https://www.twelfthmagpie.com/2024/06/29/this-former-penny-share-has-quadrupled-could-it-go-higher/</link>
                                <pubDate>Sat, 29 Jun 2024 14:45:06 +0000</pubDate>
                <dc:creator><![CDATA[Christopher Ruane]]></dc:creator>
                		<category><![CDATA[Charticle]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1327195</guid>
                                    <description><![CDATA[<p>Christopher Ruane looks at a former penny share he thinks has a distinctive business model and weighs some pros and cons of buying it for his portfolio.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/06/29/this-former-penny-share-has-quadrupled-could-it-go-higher/">This former penny share has quadrupled. Could it go higher?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">A lot of penny shares are in obscure firms most people have never heard of. But not all. Take <strong>ME Group </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>) as an example. Four years ago, the company was trading firmly in penny share territory. Since then, it has more than quadrupled, thanks to solid profits and cash flows.</p>



<p class="wp-block-paragraph">While you may never have heard of the company, there is a fair chance you have seen (or even used) one of its thousands of photo machines in supermarkets, shopping centres, and elsewhere, or one of its RevolutIon<em> </em>laundry machines.</p>



<h2 class="wp-block-heading" id="h-attractive-business-model">Attractive business model</h2>



<p class="wp-block-paragraph">This is a lucrative business. The company operates in areas that have high demand. Even during the depths of the pandemic, when ME Group was trading as a penny share, revenues fell but did not collapse.</p>



<figure class="wp-block-image size-full is-resized"><img fetchpriority="high" decoding="async" width="1200" height="603" src="https://www.twelfthmagpie.com/wp-content/uploads/2024/06/Me-Group-revenue-1200x603.png" alt="" class="wp-image-1327196" style="width:840px;height:auto"/></figure>



<p class="wp-block-paragraph"><em><sup>Created using TradingView</sup></em></p>



<p class="wp-block-paragraph">When it comes to profitability, earnings have moved around. </p>



<p class="wp-block-paragraph">Even before the pandemic earnings per share had declined – and they took a pummelling over the next several years, helping explain why ME was trading as a penny share.</p>



<figure class="wp-block-image size-full"><img decoding="async" width="1200" height="600" src="https://www.twelfthmagpie.com/wp-content/uploads/2024/06/ME-basic-EPS-1200x600.png" alt="" class="wp-image-1327197"/></figure>



<p class="wp-block-paragraph"><em><sup>Created using TradingView</sup></em></p>



<p class="wp-block-paragraph">But as the chart above shows, they are now stronger than they have ever been. I think that speaks to the appeal of ME’s business model: its automated machine network means that its labour costs can be kept low, while the services it offers tend to have robust demand. If people need to do their laundry, they need to do their laundry.</p>



<h2 class="wp-block-heading" id="h-valuation-could-offer-long-term-value">Valuation could offer long-term value</h2>



<p class="wp-block-paragraph">But a good business does not necessarily make a good investment. <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/">Valuation</a> matters too.</p>



<p class="wp-block-paragraph">I think ME Group stacks up fairly well on that front. Looking at the current <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings ratio</a> of 13, I think it offers the potential for long-term appreciation if earnings per share continue to increase in future.</p>



<p class="wp-block-paragraph">On top of that, the dividend yield of 4.3% looks attractive to me.</p>



<p class="wp-block-paragraph">I think the company’s unique estate of machines and long experience of vending machines helps set it apart from competitors. But there are risks. As we saw during the pandemic, any drop in the number of people visiting shopping centres can lead to a sharp drop in demand.</p>



<h2 class="wp-block-heading" id="h-buy-or-wait">Buy or wait?</h2>



<p class="wp-block-paragraph">Having been a penny share within the last four years, though, could ME Group head back there any time soon?</p>



<p class="wp-block-paragraph">Anything is possible in the markets, of course, but for now at least I think the firm’s robust business performance is likely to keep the share price buoyant. Its lack of competition in many areas gives it pricing power, which I think could mean we see even higher earnings in future.</p>


<div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">So, even though it no longer offers the screaming value it did as a penny share, if I had spare cash to invest today I would be happy to add ME Group to my portfolio.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/06/29/this-former-penny-share-has-quadrupled-could-it-go-higher/">This former penny share has quadrupled. Could it go higher?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                            <item>
                                <title>My best FTSE 250 stock to consider buying now for passive income while it’s near 168p</title>
                <link>https://www.twelfthmagpie.com/2024/05/18/my-best-ftse-250-stock-to-consider-buying-now-for-passive-income-while-its-near-168p/</link>
                                <pubDate>Sat, 18 May 2024 07:43:40 +0000</pubDate>
                <dc:creator><![CDATA[Kevin Godbold]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1301595</guid>
                                    <description><![CDATA[<p>This is a rare stock with a growing underlying business and a fat dividend yield – it’s worth consideration for passive income.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/05/18/my-best-ftse-250-stock-to-consider-buying-now-for-passive-income-while-its-near-168p/">My best FTSE 250 stock to consider buying now for passive income while it’s near 168p</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">My best <a href="https://www.twelfthmagpie.com/personal-finance/share-dealing/guides/how-to-generate-a-passive-income-in-retirement/">passive income</a> stocks are backed by businesses with growing cash flows and dividends.</p>



<p class="wp-block-paragraph">In the <strong>FTSE 250</strong> index, <strong>ME Group International</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-megp/">LSE: MEGP</a>) ticks a lot of boxes.</p>



<p class="wp-block-paragraph">For a start, with the share price near 168p (on 15 May), the forward-looking dividend yield is around 5% for the trading year to October 2025. But earnings, cash flows and dividends have been growing as the business expands.</p>



<p class="wp-block-paragraph">Meanwhile, the aggregated yield of the FTSE 250 is running near 4.2%, so ME Group is beating its index.</p>



<h2 class="wp-block-heading" id="h-strong-cash-flow">Strong cash flow</h2>



<p class="wp-block-paragraph">The company operates, sells and services instant-service vending equipment in 18 countries, mainly aimed at the consumer market.</p>



<p class="wp-block-paragraph">We&#8217;re talking about things like:</p>



<ul class="wp-block-list">
<li>photobooths and integrated identification solutions;</li>



<li>unattended laundry services and launderettes;</li>



<li>digital printing kiosks;</li>



<li>food service vending;</li>



<li>and other vending equipment such as children&#8217;s rides, amusement machines, and business service equipment.</li>
</ul>



<p class="wp-block-paragraph">The multi-year record for <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-cash-flow-statement/">cash flow</a> looks stable and has been growing. That backs up the dividend payments, which have been cranking up well since 2020. However, they did stop altogether that year when the pandemic struck.</p>



<p class="wp-block-paragraph">City analysts expect further advances for earnings and the dividend this year and next. Meanwhile, the share price has been responding well to the growth in the underlying business:</p>


<div class="tmf-chart-singleseries" data-title="ME Group International Plc Price" data-ticker="LSE:MEGP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Growth has been both organic and via acquisitions. Diversification into new markets and technical innovation have driven a phase of expansion in the business and it looks set to continue.</p>



<h2 class="wp-block-heading" id="h-a-positive-outlook">A positive outlook</h2>



<p class="wp-block-paragraph">In February with the full-year results report, chief executive and deputy chairman Serge Crasnianski was upbeat about the outlook.</p>



<p class="wp-block-paragraph">The business had delivered a year of <em>“record</em>” financial performance and progressed its long-term growth strategy.</p>



<p class="wp-block-paragraph">Crasnianski said the laundry operations are a <em>“key growth driver”</em>. But there was strong revenue and earnings growth across all the firm’s business areas and geographies.</p>



<p class="wp-block-paragraph">The directors expect to build on the success of 2023’s trading and achieve further progress during the current trading year.</p>



<p class="wp-block-paragraph">However, the current operational momentum hasn&#8217;t arrived overnight. For many years, the company has been building long-term relationships with major site owners.</p>



<p class="wp-block-paragraph">Equipment is usually placed in areas of high footfall such as supermarkets, shopping malls, transport hubs, and administration buildings. The strategy has led to the steady cash flow enjoyed by the enterprise today and for the past few years.</p>



<p class="wp-block-paragraph">However, there are risks from competition and general economic shocks. For example, in 2018 the share price plunged when the company downgraded its 2019 profit guidance because of over-supply in its Japanese photo identification business.</p>



<p class="wp-block-paragraph">It’s always possible for the firm to hit turbulence again given the way it’s expanding in its markets.</p>



<p class="wp-block-paragraph">Nevertheless, ME Group appears to be executing the growth of its operations well for the time being. So I see it as worth deeper research with a view to considering the stock for inclusion in a <a href="https://www.twelfthmagpie.com/investing-basics/what-is-diversification/">diversified</a> passive income portfolio.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/05/18/my-best-ftse-250-stock-to-consider-buying-now-for-passive-income-while-its-near-168p/">My best FTSE 250 stock to consider buying now for passive income while it’s near 168p</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></content:encoded>
                                                                                                                    </item>
                    </channel>
</rss>
