£500 buys 259 shares in this 6.5% yielding income stock! [PREMIUM PICKS]
Premium content from Share Advisor UK
Our monthly Ice ‘Best Buys Now‘ are designed to highlight our teamâs three favourite, most timely Buys from our growing list of income-focused Icerecommendations, to help investors build out their portfolios.
Here are the latest three picks from our team of experts.
- Morgan Advanced Materials is starting to look like a higher-quality business, with the company offloading assets as part of a business simplification programme.
- The company now trades at 10.9x forward earnings (rolling 12 months), with that figure forecast to fall to 9.6x in 2027. Taking account of the improving balance sheet and 6.5% dividend yield, the stock appears to be trading at multi-year lows based on this adjusted metric.
- Free cash flow improved significantly in 2025, following a reduction in capital expenditure and a reduction in the scope of its investments in the Semiconductor business.
- The stock now trades around 13% below its 50-day moving average after the business reported lower profits and margins in 2025. However, the long-term picture remains intact with a clearer strategic direction.
- The company is considering the sale of its Thermal Products division, which could generate cash to reduce debt and would leave the business with two higher-margin units (Performance Carbon and Technical Ceramics).
- While itâs never good to assume that an asset will be disposed of, the business would appear much stronger without its Thermal Products division. With the remaining businesses offering a blended margin above 12%, the group could command higher margins.
âBest Buys Nowâ Pick #2:
Redacted
Want All 3 âBest Buys Nowâ Picks? Enter Your Email Address!
I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.
The post £500 buys 259 shares in this 6.5% yielding income stock! [PREMIUM PICKS] appeared first on The Motley Fool UK.
Should you invest £1,000 in Morgan Advanced Materials plc right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool 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 Morgan Advanced Materials plc made the list?
More reading
- Rolls-Royce’s share price has plunged 16% from its highs! Time to buy?
- Should I put 100% of my money into this dividend stock for passive income?
- FTSE 250 correction: a rare chance to buy cheap shares
- After 17 years, Robert Walters is once again a penny stock â yet analysts eye a 143% recovery!
- Are National Grid shares an oasis of calm as the FTSE 100 goes crazy?
Mark Rogers has no position in any of the shares mentioned. The Motley Fool UK has recommended Morgan Advanced Materials Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
