Top shares under 10 euros: Yes, they are back! Due to the declining stock market valuations, stock prices are also partially correcting under this brand. Sometimes a dividend deduction helps get us to these ratios.
Today we will take a look at two such top stocks under 10 euros. Both have solid returns, strong business models and attractive long-term return potential. Ready? So let’s go!
Top share under 10 euros: Hamborner REIT
A first top stock that has again fallen below the 10 euro mark is Hamborner REIT (WKN: A3H233). With a price level of currently EUR 8.60, even the dividend is very, very attractive. Based on a final payment of 0.47 euros, we currently received a dividend of 5.46%.
5.46% dividend yield, which appears to have been carved in stone in very large parts. Hamborner REIT has not cut its dividend once in two decades. Admittedly, it looked like this in the short term during the corona pandemic. However, the management decided due to rather small consequences. Funds from operations per. share of EUR 0.65 recently and a consequent payout percentage of 72.3% also shows that this share can afford a stable and in fact even moderately increasing payout.
However, Hamborner REIT is also a top stock below EUR 10 because the focus on real estate is timeless and value-stable. In times of inflation, this is a crucial benefit. A price-FFO ratio of currently 13.2 sets the course for a solid, long-term return. The majority of the funds from the operation come from the rental of daily business premises from supermarkets, DIY stores and other retail outlets. The second focus, on the other hand, is office space. Overall, a solidly valued stock that is now attractively priced from both an internal and an external point of view.
E.ON: Can it be a supplier?
Also E.ON-Shares (WKN: ENAG99) can be a top share under 10 euros. Basically: the stock certificates are currently trading at a price level of EUR 9.75. The first criterion is thus met. But, of course, it is not the price that matters, but the value and return potential.
For the E.ON share at EUR 9.75, there was a recent dividend of EUR 0.49. On this basis, investors will also receive a dividend of 5%, at least if the distribution remains constant next year. In 2022, the annual general meeting and thus the ex-dividend date has already passed.
With an earnings per. share in 2021 at EUR 1.80, the price-earnings ratio would not even be 5.5, although this value should not be used to determine the intrinsic value in the long run. The 2019 value of 0.68 EUR seems to me to be more adjusted, on the basis of which we achieved a price-earnings ratio of 14.3. This can be relatively solid, especially since utilities may very well be in demand at the moment due to the energy market. Not bad for a top stock for under 10 euros.
Long-term investors with a desire to receive solid dividends can therefore take a closer look. Perhaps also of the significance that the E.ON share will soon have a good chance of being listed above EUR 10 again.
The Top Stock under the 10 Euro article first appeared on The Motley Fool Germany.
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Vincent owns shares in Hamborner REIT. The Motley Fool does not own any of the listed shares.
Broget Fool Germany 2022