2 Inexpensive FTSE 100 Dividend Stocks To Buy Now! – .

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2 Inexpensive FTSE 100 Dividend Stocks To Buy Now! – .


The FTSE 100 is full of top quality bargains. Here are two cheap blue-chip UK stocks that I am considering buying right now.

An FTSE 100 share in the era of e-commerce

To me, it’s no surprise that Royal Mail (LSE: RMG) the share price has remained afloat in recent weeks. With many other UK stocks facing a big Omicron-related impact, Royal Mail could likely benefit from a worsening Covid-19 crisis.

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Markets around the world are reeling from the coronavirus pandemic … and with so many large companies trading at prices that appear to be ‘discount containers’, now may be the time for savvy investors to close. potential business.

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Parcel traffic at the courier soared last year as closures pushed shoppers away from Main Street and onto their cellphones and laptops. So it’s no exaggeration to suggest that e-commerce sales could rise again as viral infection rates rise. Sales could increase even if new restrictions are not imposed, such is the extent of anxiety among buyers, as analysts at ParcelHero recently mentioned.

City analysts believe Royal Mail profits will rise 14% in this fiscal year (through March 2022). Although I think the projections could be improved depending on the state of public health emergency. Regardless of that, I would still buy shares in the delivery giant today as e-commerce looks set to continue to grow rapidly. Dropshipping company Oberlo estimates that 24.6% of all retail sales will be made online by 2025. That compares to an estimated 19.5% share for this outgoing year.

Current forecasts mean that the Royal Mail share price is commanding a forward price / earnings (P / E) ratio of just under 8 times. In addition, at current levels, the courier is showing a substantial dividend yield of 4.6%. This reading beats the wider 3.5% average of the FTSE 100 from a decent distance. Letter and parcel volumes at Royal Mail could suffer if the UK economy cools sharply. But I think the company still looks very attractive from a reward / risk perspective.

5% dividend yield

I am also thinking of adding national grid (LSE: NG) to my equity portfolio alongside Royal Mail. Indeed, its ultra-defensive operations (it has a monopoly on maintaining the British electricity grid) provide excellent peace of mind when it seems like the world is going to hell in a handcart. Its services will remain essential even if the Covid-19 crisis gets out of hand and the economy collapses.

Like any UK stock, of course, National Grid exposes its investors to certain risks. For example, maintaining the country’s network of pylons, substations and other equipment is expensive and undermines profits. These costs can also increase unexpectedly in extreme weather conditions. In addition, the threat that lawmakers could deprive National Grid of its role as the sole gatekeeper of the network is a pervasive risk facing its shareholders.

Yet at current prices, these are dangers that I am happy to accept. City brokers believe National Grid earnings will rise 17% in the fiscal year ending March 2022. That leaves the company trading on a forward price-to-earnings growth ratio (PEG) of only 0.6. A reminder that a reading below 1 suggests that a stock might be undervalued by the market.

This, combined with a 5% forward dividend yield, makes National Grid great value for money, in my opinion.

I think this UK action could help me retire early, just like the main stocks discussed in this special report on wealth.

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Markets around the world are reeling from the coronavirus pandemic …

And with so many large companies still negotiating at prices that appear to be “containers of discounts,” perhaps now is the time for savvy investors to close potential deals.

But whether you are a new investor or a seasoned professional, deciding which stocks to add to your shopping list can be a daunting prospect during an unprecedented time.

Fortunately, The Motley Fool is here to help: Our UK CIO and his team of analysts have shortlisted five companies they believe STILL offer significant long-term growth prospects despite the global foreclosure …

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