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Our monthly Ice Best Buys Now are designed to highlight our teamâs three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.
âBest Buys Nowâ Pick #1:
A G Barr (LSE: BAG)
Part-family-owned soft drinks business that has an attractive brands portfolio.
In its first half, sales grew by 33%, representing 10% like-for-like growth, driven by higher prices and volume growth. Profits are expected to arrive âmarginally above the top end of analyst expectationsâ for the full year.
While its operating margin is under pressure from cost inflation, the company reckons it can rebuild margins over the medium-term, helped by supply chain optimisation, cost management, and developing its brand portfolio.
While long time CEO Roger White is stepping down at âa mutually agreed date in the next 12 monthsâ, the company continues to look attractive, thanks to attractive brands, a strong balance sheet, and an excellent long-term record of dividends, profit growth and high ROCE.
Just announced a £12.3m deal for tropical drinks brand Rio, funded from its cash resources. The deal should broaden Barrâs brand portfolio and, with its strong balance sheet, itâs likely the company might make more bolt-on acquisitions.
Itâs currently trading at just over 16x forecast earnings, which we think offers attractive value for a well-managed business with a strong balance sheet and recognisable brands.
âBest Buys Nowâ Pick #2:
Redacted
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The post Just released: our 3 top income-focused stocks to buy before December [PREMIUM PICKS] appeared first on The Motley Fool UK.
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More reading
Could this acquisitive UK income stock be a bargain?
The Motley Fool UK has recommended A.g. Barr P.l.c.Â
