Looking for FTSE 100 bargain stocks? Check these out!
Stock markets are yoyo-ing in 2026, providing excellent FTSE 100 investment opportunities. Many top quality blue chips trade on rock-bottom price-to-earnings (P/E) ratios. Other large cap UK shares now boast monster dividend yields. Some offer both.
M&G (LSE:MNG), Alliance Witan (LSE:ALW) and Lion Finance (LSE:BGEO) are three that have caught my attention today. Want to know what I think makes them genuine bargains to consider rather than value traps? Read on.
8% dividend yield!
Recent share price weakness has propelled M&G’s dividend yield for this year back above 7%, to 7.7%. For 2027, the yield moves to 8%. This makes it one of the FTSE 100’s most irresistible dividend stocks and high on my watchlist for when I have cash to invest.
The firm’s fallen in value as the Iran war has worsened inflationary pressures. If the conflict persists, consumer spending on discretionary financial products could drop. However, I’d still consider buying M&G shares — the long-term outlook remains robust as ever, with demographic changes tipped to drive rapid market growth.
M&G’s leading sector position puts it in great shape to supercharge earnings in this landscape. In the meantime, I expect the firm to keep paying enormous dividends, supported by its cash-rich balance sheet.
Top trust
At £12.20 per share, Alliance Witan’s dividend yield has risen to 2.4%, the highest in about a year. That’s not groundbreaking — the average yield on FTSE 100 stocks sits higher than this at 3.2%.
However, it’s an added sweetener for an investment trust that’s already looking cheap. Today it trades at a 6.1% discount to its net asset value (NAV) per share.
Like other shares-based trusts, Alliance Witan’s dropped amid broader stock market volatility. It might do again. But longer term, I’m expecting it to keep delivering juicy rewards. The average annual return here has averaged 10% over the last five years.
This reflects the trust’s huge portfolio of quality stocks. With holdings in 227 global shares spanning industries and regions, it allows investors to effectively spread risk and capture a multitude of opportunities.
Growth and dividends
Lion Finance is one of the FTSE’s most exciting bank shares in my view. It only entered the blue-chip index in late March. Like HSBC, it harnesses the enormous growth potential of emerging markets.
In this case, the company (formerly known as Bank of Georgia) provides banking services to Georgians and Armenians. Profits have grown rapidly for years, as rapid economic growth has turbocharged boosted personal wealth levels. The bank’s underlying profits soared 28% year on year in 2025.
Can it keep delivering these sort of stunning numbers, though? An extended Middle East conflict could hit earnings if regional and global growth cools. However, I think this is more than reflected in Lion’s rock-bottom valuation.
The forward P/E ratio is 5.6 times. A 3.8% dividend yield provided a tasty bonus. I’m optimistic the bank will keep going from strength to strength.
The post Looking for FTSE 100 bargain stocks? Check these out! appeared first on The Motley Fool UK.
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HSBC Holdings is an advertising partner of Motley Fool Money. Royston Wild has positions in HSBC Holdings. The Motley Fool UK has recommended HSBC Holdings and M&g 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.
