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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 owns attractive brands.
Grew like-for-like sales by 15.9% in latest fiscal year.
Impressive momentum from its Funkin brand, the UKâs leading ready-to-drink cocktail brand, which grew revenues by 16%.
The company says that 9.6m UK consumers drink cocktails out of home, a 1.6m increase since pre-pandemic, which has helped the category increase by 13% to £686m since 2019. This looks like a growth avenue for the company.
Recent acquisition of Boost âhas performed exceptionally wellâ.
While operating margins declined from 14.9% to 13.6% due to inflationary cost pressure and higher investment, the company believes it can rebuild margins over the medium-term.
Currently trading at around 16x forecast earnings, a discount to the three-year average of closer to 20x.Â
âBest Buys Nowâ Pick #2:
Redacted
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The post Just released: our 3 best income-focused stocks to buy right now [PREMIUM PICKS] appeared first on The Motley Fool UK.
Like buying £1 for 51p
This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!
Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.
What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?
See the full investment case
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The Motley Fool UK has recommended A.g. Barr P.l.c.Â