Top value stocks for smart investors? Of course there can be. Valuations are cheaper, although the outlook is mixed in the short to medium term. However, if markets calm down or we get closer to a more normal market setting, it can mean strong long-term returns.
I see two value stocks that can be top for smart investors right now. What are they and what are their benefits? You’re getting smarter in three minutes, I promise.
BASF: Top value stock for smart investors
It should be smart investors BASF (NASDAQ: BASF) as your first top value stock to consider. The chemical group DAX is simply valued relatively cheaply at the moment. The dividend yield now functions as a constant in a valuation that changes cyclically. Based on the most recently paid EUR 3.40 per share, the dividend yield is currently around 6.8%. That is a relatively high figure, rounded off with a price-to-earnings ratio in 2021 of just over 8.
There are concerns about the BASF stock, no doubt. In particular, the short-term prospects for energy security are causing problems for the chemical company. Production depends on having enough resources and energy. Otherwise, errors may occur and as a result a worse result. The market is currently pricing this with this favorable valuation.
But there are bright spots. OPEC signaled, among other things, that they wanted to act as a reliable supplier of fossil fuels. It is a good indicator of the top value stock for smart investors. All in all, this market is special. Especially when it comes to assessing long-term prospects. Even temporarily declining earnings per. share does not change by the fact that the DAX chemical group is currently cheap and high in dividends.
Medicinal properties: Also very value!
REITs are generally no longer in demand in times of rising interest rates. on Medicinal properties (NASDAQ: AMD) (NASDAQ: AMD), I think this leads to us getting a stock of really highest value to smart investors. At the very least, the valuation is cheap enough to be conspicuous in the case of real estate investment funds.
Let’s look at the details: With a stock price of $ 18.02, the price-to-FFO ratio is currently only 9.6. The dividend yield is also relatively high at over 6.2%. We must not forget that this value stock actually has a moderate growth potential.
On the risk side, of course, there are a few things that savvy investors should know about this stock of the highest value. Rising interest rates are a burden, the relatively high level of debt is another construction site. Nevertheless, this evaluation measure offers a high, attractive safety margin. Even without further growth, there would still be a solid long-term return potential, especially as the payout percentage of 62% leaves room for change.
Article 2 Top Value Stocks Smart Investors Should Be Think About Now first appeared on The Motley Fool Germany.
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Vincent owns shares in BASF and Medical Properties. The Motley Fool does not own any of the listed shares.
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