So which bargain stocks have grabbed my attention today? Grainger (LSE:GRI) and Ibstock (LSE:IBST) have both caught my eye, as each carries one or more of a low:

• Price-to-earnings (P/E) ratio
• Price-to-earnings growth (PEG) ratio
• Price-to-book (P/B) ratio

As a keen income investor, I’ve also considered the dividend yields of each company. And one of these top stocks carries a yield miles above the FTSE 250 average of 3.3%. Let’s take a look.

Too cheap to miss?

Grainger’s share price has fallen off a cliff since the Middle East conflict began. Why? With soaring oil prices fuelling inflation, it’s possible that interest rates will be hiked, hitting the property stock’s asset values and earnings.

But have these fears been overstated? I think so, given how cheap Grainger’s shares are today. Its forward price-to-earnings (P/E) ratio has tumbled to 5.8 and its P/E-to-growth (PEG) to 0.7.

As well, the real estate investment trust (REIT) has seen its P/B ratio drop to 0.6. As with the PEG, any reading below 1 indicates a share trading below value.

Finally, Grainger’s dividend yield has jumped to 5.9%. Under REIT rules, at least 90% of annual rental profits must be paid out in dividends.

On balance, I think Grainger’s a top stock to consider in uncertain times. And especially with that rock-bottom valuation. Its focus on the stable residential property market should help it weather any storms. We all need a roof above our head, after all.

Looking longer term, Grainger has exceptional earnings potential as it steadily builds its portfolio. The company has more than 11,000 homes today, and a large development pipeline to raise that number by almost half. I think it could soar in value over time.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Another FTSE 250 bargain

Brick manufacturer Ibstock is possibly even more affected by the Iran war than Grainger. How so?

Rising interest rates threaten to derail the housing market’s fragile economy. On top of this, brickmaking is a highly energy-intensive process, leaving this FTSE 250 share vulnerable to rocketing energy prices.

Could these threats now be baked into Ibstock’s share price, though? I think so. In fact, I’m considering adding more of its shares to my existing holdings, so cheap are its shares right now.

Ibstock’s forward PEG ratio is just a fraction above 0, suggesting outstanding value. Its P/B is also under the value yardstick of 1, at 0.9.

As an investor, I’m happy to endure some short-term pain in exchange for significant long-term gain. And the potential returns I expect to make here are hugely attractive. Brick demand could accelerate sharply as Britain’s rising population fuels a housebuilding boom. Government studies suggest as many as 300,000 new homes are needed every year following years of undersupply.

Ibstock is especially well placed to capitalise on this opportunity. It’s the UK’s largest brickmaker, accounting for roughly 40% of market supply.

The post These white-hot FTSE 250 growth shares are on sale today! appeared first on The Twelfth Magpie.

There are numerous attractions, including:

• Full control over buying and selling the property.
• The ability to choose tenants, rents, and home improvements.
• The wide availability of buy-to-let mortgages to leverage returns.
• Protection from stock market volatility.
• The potential to capitalise on rising house prices.

Yet conditions have been getting tougher for buy-to-let investors in recent years. Reduced tax relief, rising mortgage rates, higher tenancy costs, and greater regulation have all made things more difficult.

And things could be about to get tougher for private landlords…

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Getting harder

Mortgage rates were set to be better in 2026 as inflationary pressures ease. But the Iran war has thrown a spanner in the works, and at least two Bank of England hikes are currently tipped for this year. Borrowing costs could spike for landlords.

That’s not the only problem facing buy-to-let investors. As I say, tighter regulation has also been a problem. And rumours are growing that the Chancellor is planning to stop private landlords from raising rents for one year as the Iran conflict hits household finances.

It’s just talk at the moment. Still, it’s another potential obstacle that would-be and existing landlords must consider.

Are REITs a better option?

My view on buy-to-let has been unchanged for years. I don’t like the upfront costs associated with buying rental property, or the day-to-day commitment of being a landlord. I also don’t like the idea of paying someone else to manage the property for me, not to mention maintenance costs that can be astronomical.

For me, investing in a REIT is far more attractive. I still get the same chance of receiving a steady stream of passive income, as buy-to-let landlords enjoy. REIT rules state at least 90% of annual rental profits must be paid out in dividends. That’s in exchange for juicy tax breaks.

I also don’t have to manage the property, and I can sell my holdings far more quickly and cheaply than a bricks-and-mortar property. Furthermore, REIT investors can invest in a far broader range of assets. I hold Primary Health Properties and Target Healthcare for instance. The benefit? They let me make money from the lucrative primary medical centre and care home sectors respectively.

A top trust to consider

But what about if investors just want to stick to residential property? I think Grainger (LSE:GRI) is a great trust to look at.

Down the years, it’s become one of the FTSE 250‘s greatest dividend growth shares. Since 2011, annual payouts have risen every year bar one. The exception was in 2021, when asset sales and pandemic pressures impacted group rental income and dividends.

What I especially like about Grainger is its enormous portfolio of 11,000+ homes. The advantage? It can still pay a reliable dividend even if some of its tenants don’t pay the rent or vacate. A buy-to-let investor with one or two properties may not have the same security.

Like any REIT, Grainger isn’t completely without risk. Higher interest rates will have a knock-on impact on its borrowing costs and therefore expansion plans. But given the choice to invest here or in buy-to-let? For me, it’s a no-brainer.

The post 3 REITs to consider as buy-to-let gets tougher in 2026! appeared first on The Twelfth Magpie.

Right now, I can see shares in each category for investors to consider. And they’re not always the most obvious names.

Associated British Foods 

The FTSE 100 currently has a dividend yield of 3.3%. And Associated British Foods (LSE:ABF) is exactly in line with this. 

That makes the next question a straightforward one – is this an above-average business? I think it might be.

The company’s main asset is Primark. And while it’s a retailer, it’s important not to underestimate just how valuable it is. Primark recently reported a fall in like-for-like sales across Europe. But that’s not as significant as it might be. 

It certainly highlights a key risk. When consumer spending is weak, lower sales can lead to price cuts that weigh on margins. Unlike the majority of publicly-traded retailers, though, Primark is still expanding rapidly. Especially in the US.

The firm currently has around 38 stores in the US. But there’s talk of this growing to over 100 by 2030, which is a big increase.

While success isn’t guaranteed, the early signs are promising. And there are also expansion plans in other countries. That means Primark’s growth isn’t limited to like-for-like sales. And it’s why I think dividend investors should take a look. 

Grainger

Despite excess inventory in the UK housing market, affordability issues remain. Enter Grainger (LSE:GRI).

Ultimately, housing is a basic need. And if people aren’t in a position to buy – for whatever reason – they have to rent.

The firm owns and leases residential properties. And it has 11,000 properties with 5,000 more in its pipeline for future growth

In terms of the dividend, the situation is a little complicated. Grainger is becoming a real estate investment trust (REIT). That means the dividend will become mandatory. But the firm should benefit from tax exemptions on its rental income.

Analysts think the result will be a yield of around 5.5%. And that might well be attractive in today’s market. 

There’s obviously a shortage of housing in the UK, so demand for Grainger’s properties should stay strong. But there are risks. One of these is regulation. Shifting standards can result in higher costs and while Grainger is well-positioned right now, that could change. 

In terms of dividends, though, this looks like an interesting business in a durable industry. And I think it’s worth a closer look. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Income investing

There’s more than one way to be a dividend investor. But the best opportunities are often high-quality companies that the market underestimates.

In my view, both Associated British Foods and Grainger meet this description. Neither is a high-octane bushes, but that’s not the point. 

Both combine decent dividends with strong growth prospects. And that’s what I think investors looking for passive income should prioritise.

The post 2 UK dividend stocks to consider buying in April appeared first on The Twelfth Magpie.

JD Sports Fashion (LSE:JD.), Grainger (LSE:GRI) and TBC Bank (LSE:TBCG) are three that have caught my eye this month. Each comes with an ultra-low price-to-earnings (P/E) ratio. But that’s not all that makes them great value stocks to consider buying.

Here’s why they could be too cheap for investors to ignore.

Fashion and sports star

Retailers like JD Sports face severe challenges as surging oil prices fuel inflationary pressures. But could this be baked into this FTSE 100 share’s current valuation? I think so. Fresh share price weakness leaves the sportswear giant on a forward P/E ratio of 6.5 times.

The good news for JD is key brands like Nike and Adidas are regaining popularity with consumers, latest financials show. Collectively, these top-tier brands make up the lion’s share of company sales. Even if shopper spending power becomes more constrained, their excellent brand power could support strong sales at the retailer.

Longer term, I’m optimistic JD’s profits could soar from today’s levels as global store expansion rolls on. Recent price weakness represents a new dip opportunity to consider.

Top trust

Grainger is one of the most attractive dividend stocks on offer today, in my view. Like all real estate investment trusts (REITs), it has to pay 90% or more of its rental profits out in cash to investors.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

That’s not all. It’s Britain’s largest listed operator in that most defensive of sectors: residential property. So even if economic conditions worsen and inflation bursts higher, rental income should remain broadly stable.

Higher interest rates will likely hit its share price by raising borrowing costs. This could also weigh on its growth prospects by making new housing developments prohibitively expensive. However, those REIT rules mean Grainger should still be a reliable and generous dividend growth stock.

City analysts agree, meaning a huge dividend yield of 5.1% for this financial year (to September 2025). A forward P/E ratio of 8.9 times provides an extra sweetener for value investors.

The best bank?

TBC Bank is one of the hottest growth stocks out there, in my view. Unlike Lloyds, for instance, which operates in a very mature market, this FTSE 250 bank operates in the fertile Georgian marketplace. This is one that offers the stunning combination of low product penetration and surging demand as the local economy booms.

Like other banking stocks, TBC also stands to gain from more favourable interest rates that’ll boost margins. Rising inflationary pressures are feeding expectations that central banks will stop cutting — or perhaps even hike — their lending rates.

I don’t think these factors are reflected in TBC’s low forward P/E ratio of 5.6 times. Growth could be impacted if the National Bank of Georgia raises rates, hurting the domestic economy. But I think the bank’s challenges are more than baked into that low earnings multiple.

One final thing: the dividend here for 2026 is a gigantic 6.5%.

The post These 3 FTSE 100 and FTSE 250 stocks are now dirt cheap! appeared first on The Twelfth Magpie.

Grainger (LSE:GRI) is the UK’s largest commercial landlord. It has – in my view – an enviable portfolio of properties in some attractive locations and strong rent collection metrics to boot. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Grainger’s portfolio

With any REIT, one of the key things to focus on is its portfolio. It has over 11,000 properties, almost all of which are currently occupied by paying tenants. 

In terms of location, these are distributed across major UK cities. And unlike other residential REITs, a significant number of them are located in London. 

As a result, the company offers the opportunity to invest in property in areas where house prices are prohibitively high. But is this something investors should be looking for?

The rise in artificial intelligence (AI) brings with it an increasing risk of redundancies, especially for white-collar workers. And these are the people that typically live in cities.

There’s a risk that this might lead to lower demand for Grainger’s properties in the future. But investors can gauge the severity of that particular threat for themselves. 

In the meantime, a couple of high-profile investing names have been taking an interest in the stock. And while that’s not itself a reason to buy, it’s worth paying attention to.

Smart money

One individual who has recently been betting on Grainger is Mike Ashley – of Sports Direct fame. The former Newcastle United owner has acquired a stake equivalent to 3.1% of the firm.

I’m choosing my words carefully here, because the number of shares Ashley has actually bought is zero. He’s made his move using derivatives, rather than buying the stock directly.

These are – or should be – almost identical to the underlying shares from an economic perspective. The only real difference is that they aren’t eligible for stamp duty. 

A non-economic difference, though, is that they don’t come with voting rights. So Ashley is presumably planning to be a passive participant, rather than an active investor. 

An institution that has been buying shares, though, is Norges Bank. The firm manages the Norwegian Sovereign Wealth Fund and has increased its stake to 9%. 

The company has over 9,000 equity investments across the world, which is a huge number. But I do think it’s significant that Grainger is on its radar as a stock worth buying. 

Time to buy?

I think there are some really interesting opportunities in UK REITs at the moment. And while Grainger has been on my list, it’s never been my top opportunity. 

News of some high-profile investment names looking to get involved has caused the stock to climb this week. And that’s probably made it slightly less attractive.

If the share price settles down a bit, I might well come back to take a closer look. But for the time being, I think there are more attractive ways to earn passive income from property.

The post Smart investors are betting on this passive income stock appeared first on The Twelfth Magpie.

Real estate investment trusts (REITs) allow investors to avoid the high upfront costs and day-to-day management that typically comes with buy-to-let. What’s more, thanks to rules on dividends, these trusts can also be a better way to target a large and stable second income.

Furthermore, if purchased within an ISA, investors don’t pay tax on any of their passive income or capital gains. It’s a perk that buy-to-let landlords would love to have.

With all this in mind, which REIT stocks should investors consider buying today?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Investing in an ISA

The beauty of REITs is that I can have a range of sectors to choose from. Unlike buy-to-let, where investment is restricted to residential property, in the UK I can choose to invest in, for instance:

• Medical centres
• Shopping malls

• Data centres
• Care homes
• Office blocks
• Warehouses and distribution centres

For residential property investment, Grainger (LSE:GRI) is a top trust to consider in my book. It has 11,078 homes spanning the country on its books, and a committed pipeline of 954 more homes to supercharge rental earnings.

Having a wide range of properties like this reduces the impact of rent defaults and empty properties on overall returns. For the last financial year (to September 2025), Grainger’s occupancy averaged an impressive 98.1%.

For buy-to-let investors owning maybe one or just a handful of homes, these dangers are much more severe.

There are risks at Grainger, of course. Government plans to build 300,000 new homes a year might harm future rent growth as supply increases. Rising regulation — such as the Rent Reform Bill this year that limits rent increases and bans no-fault evictions — is another threat to future earnings.

Yet these are threats facing private landlords too.

REIT benefits

I like the idea of investing in residential real estate right now. Rent growth has slowed in the UK, but with Grainger targeting a rise of 3% to 3.5% this year, investors can still expect a solid return on their cash.

I also like the excellent defensive characteristics of residential property. Rental income and occupancy remains steady across the economic cycle, providing excellent long-term dividend stability.

With REITs paying 90% of rental profits out in dividends each year, too, they’re one of the best ways to target passive income in my view.

Targeting a million

By investing in an ISA, individuals can combine buying REITs like this with other shares to target better returns that they could otherwise expect by just buying property.

Since 2015, the average Stocks and Shares ISA has delivered an average annual return of 9.64%. If this continues, someone investing just £500 a month could make more than a million (£1.05m to be exact) in 30 years.

I hold a wide range of REITs and stocks in my own portfolio. I’m confident this strategy will help me build significant wealth over time.

The post Forget buy-to-let! Aim for a million with a Stocks and Shares ISA instead appeared first on The Twelfth Magpie.

The details of the Budget will be revealed on 26 November. And while there’s a lot that’s uncertain, investors should be thinking now about changes that could be on the way. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

What are REITs?

REITs are companies that own and lease real estate in the form of houses, offices, warehouses, or just about any kind of property. And they have a unique tax-advantaged status.

Unlike other companies, REITs don’t pay any tax on their income. But they have to return 90% of what they make to investors in the form of dividends.

This makes them very efficient income sources. Where buy-to-let investors have to pay tax on their rental income, REITs can distribute cash to shareholders without having to do this.

Furthermore, savvy REIT investors can use a Stocks and Shares ISA or a SIPP to protect themselves from dividend tax. This is a big benefit – and it might be about to get bigger…

Tax brackets

The Chancellor had been rumoured to be considering increasing income tax. But while that’s been ruled out, a freeze on tax thresholds now seems more likely.

That means people stand to pay more tax as their income increases. And it affects landlords, who pay tax on their rental income.

REIT investors who invest using an ISA or a SIPP, by contrast, are set to be unaffected. And that could make REITs even more attractive to investors than buy-to-let properties. 

If this happens, REITs across the board could get a boost. So now might be the time for investors to have a serious look at the passive income opportunities on offer.

London housing 

One name that I think is particularly interesting is Grainger (LSE:GRI). The firm only became a REIT a couple of months ago, but it has a really interesting portfolio of houses.

Around half of the firm’s properties are located in London. As a result, it benefits from strong demand and there’s not much available space for building, so supply is naturally limited.

One potential risk is the possibility of future changes in rental legislation creating costs and weighing on returns. But it’s worth noting this is also an issue for buy-to-let investors.

At least with Grainger, investors get a management team to deal with this for them. And with roughly 4,500 more properties in the pipeline, the portfolio looks set to grow. 

Long-term thinking

Investors should be thinking about how the upcoming UK Budget might reshape their portfolios. And that includes the rental market and income-generating property investments.

The point isn’t just to be one step ahead of a potential boost in share prices. It’s to be own assets that have better long-term prospects.

If income tax thresholds staying fixed pushes up the amount of tax landlords pay on their rental income, this could benefit the owners of REITs over buy-to-let properties. And it’s being reported as a serious possibility.

As a result, I think investors should take a look at the opportunities in the REIT sector in the UK right now. And Grainger is a new name that’s worth serious attention.

The post REITs might be big winners in the upcoming UK Budget — here’s what to look for appeared first on The Twelfth Magpie.

It’s no secret that the hardest part of buying a house is often getting the deposit together as prices just keep going up. But I think this could be a smart way to try and build some wealth to help the process.

Building a deposit

Trying to put together a deposit to buy a house can be a soul-destroying experience and we all know why. Despite higher interest rates in the last few years, property prices just keep going up.

In the last 10 years, the average house price in the UK is up by around 50% and the average wage has increased by about 4%. Forget Netflix, gym subscriptions, and whatever else — that equation just doesn’t work.

Source: Trading Economics

There are lots of theories about why property prices keep going up – I certainly have mine – but that’s a conversation for another day. What matters right now is what to do about it.

To avoid being left behind, future first-time buyers need something that can keep pace with rising house prices. And I think Grainger is well worth checking out as a potential answer.

A ready-made portfolio

Grainger owns and leases a portfolio of over 11,000 houses across the UK. And around half of these are located in London, where demand always seems to be exceptionally strong. 

Source: Grainger Investor Relations

Put simply, this is a way of investing in property. So unless something strange happens, an investment in the company should grow as the value of its portfolio increases with rising house prices.

There are a few reasons why it might not. One is the possibility of changing rental regulations generating a lot of unforeseen costs if Grainger has to keep modifying its buildings.

Other things being equal though, an investment in the firm should be able to keep pace with a rising property market. And we haven’t even got to what I think is the best bit. 

Rental income

As a REIT, Grainger is required to return 90% of its taxable income to shareholders. So investors don’t just participate in rising property prices, they also get cash dividends from the business.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Dividends are never guaranteed, but have been growing steadily over the last decade. And the company reports that a lot of its tenants tend to stay in its properties for the long term.

Grainger also has big plans for future expansion. A future pipeline worth around £1.3bn means it’s looking to add another 37% to the value of its existing portfolio. 

In a market where prices only seem to go higher, that could be worth a lot. And investors can participate in this growth by buying shares in the company without needing a huge deposit.

If you can’t beat ’em…

It feels like first-time buyers in the UK are at a structural disadvantage – and they have been in recent years. But investing in property via REITs is an idea that’s well worth thinking about.

Owning shares in Grainger could help future buyers avoid being left behind by rising house prices while earning passive income on the side. And it’s not the only opportunity worth considering.

The post This REIT offers a way onto the London property ladder for less than £2 appeared first on The Twelfth Magpie.

Bank of England actions have also driven up debt-servicing costs, increasing their day-to-day expenses and hampering their growth plans by limiting investment opportunities.

Fears of higher interest rates enduring mean many REITs continue to trade below value. This provides an excellent opportunity for long-term investors to nip in and grab some bargains.

Under sector rules, at least 90% of annual rental earnings must be paid out in dividends. Here are two I think are worth considering for a cheap way to target a passive income.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Home run

Full disclosure: while Grainger (LSE:GRI) isn’t a REIT just yet, it’s scheduled to transition into one by October. This makes it worthy of consideration for those building a shopping list of possible shares to buy.

The company’s the UK’s largest landlord in the residential sector. This has two significant advantages: occupancy is high throughout the economic cycle (this was 96% as of March, latest financials show). And rents are rising sharply as Britain’s chronic homes shortage endures.

Like-for-like revenues were up 4.4% in the six months to March. To capitalise on this favourable backdrop, Grainger has a development pipeline of 4,565 homes scheduled for completion over the next few years.

I don’t believe this opportunity is reflected in the cheapness of the trust’ shares. Today, the build-to-rent (BTR) specialist trades at a 32% discount to its NAV per share of 294p, as stated at the end of March.

On the dividend front, Grainger offers a robust 4.2% forward yield for the current financial year (to September).

I think it’s a top upcoming REIT to consider for passive income growth. It hiked the interim dividend 12% for the current fiscal period.

Be mindful however, that government plans to supercharge housebuilding over the next several years could impact rental growth.

Space to grow

Warehouse REIT‘s (LSE:WHR) another cheap property stock that’s grabbed my attention. Today, its shares change hands at a 10.8% discount to today’s estimated NAV per share of 128.7p.

As its name suggests, the company lets out spaces for businesses to store and distribute goods. As a consequence, it’s well-placed to capitalise on multiple growth trends including:

• The steady growth of online shopping
• Increasing demand for ‘last mile’ logistics
• Changes to global supply chains, including the rise of ‘just in time’ inventory management
• The spike in ‘nearshoring,’ where companies bring their operations closer to home

With high exposure to cyclical sectors, rents can be less predictable than those of Grainger’s. But its focus on multi-let warehouses helps reduce (if not totally eliminate) this threat. In total, it has 409 different tenants spread across 60 sites. This provides considerable strength through diversification.

Dividends at Warehouse REIT are tipped to remain stable through to the end of the next financial year (to March 2027). And on the plus side, this means yields sit at a robust 5.7% for the period.

The post 2 cheap REITs to consider for a long-term passive income appeared first on The Twelfth Magpie.

Harnessing the green revolution

Britain has some of the world’s most ambitious renewable energy targets, which bodes well for companies like Greencoat UK Wind (LSE:UKW). By 2030, the government plans to meet 100% of the country’s total energy demand with clean sources.

This provides an attractive place for green energy providers to invest. Changes to onshore wind farm planning rules will make it easier for businesses to expand. And the Contracts for Difference (CfD) model — which guarantees a multi-year fixed electricity price — is run in a way that provides better revenues visibility than operators in most other countries enjoy.

As its name suggests, Greencoat UK Wind’s portfolio just covers these shores, proving maximum exposure to this environment. On the downside, this narrow footprint leaves group earnings more vulnerable to localised weather patterns. However, the country’s assets are located across all the home nations and on land and sea, which reduces this threat.

Brand heavyweight

The rising popularity of local household goods manufacturers poses a threat to the established industry giants like Unilever (LSE:ULVR). But I’m hopeful the FTSE 100 company has what it takes to weather the storm — after all, it’s been leading in its markets since the late 1920s.

Revenues certainly continue chugging higher for now, an especially impressive feat as cost-of-living crises linger in some regions. Underlying sales increased 3% in the three months to March, with volumes rising even as price increases came into effect. This illustrates the mighty brand power of brands from Dove soap and Axe deodorant to Hellmann’s mayonnaise.

Largely speaking, Unilever’s diversified model across geographies and product lines gives it excellent long-term earnings visibility. With heavy exposure to fast-growing emerging markets, too, it has considerable scope for long-term growth.

Home comforts

The UK’s huge shortage of residential rental properties is well documented. The exodus of buy-to-let investors threatens to make it worse.

Build-to-rent (BTR) specialists like Grainger (LSE:GRI) stand to be big winners from this trend. Government plans to supercharge housebuilding could limit this growth opportunity, but the massive market shortfall will take years and significant effort to solve.

In the meantime, rents in the UK remain on course to continue rising at breakneck pace. Latest Office for National Statistics (ONS) data showed private rents soared 6.7% in the 12 months to May.

Grainger is expanding to capitalise on these favourable conditions as well. Its £1.3bn BTR pipeline includes around 4,500 homes. It’s expected to boost earnings (on a European Public Real Estate Association, or EPRA, basis) by 50% between last year and 2029.

One final thing: the company’s plans to transition to a real estate investment trust (REIT) could make it an excellent passive income share. Under sector rules, REITs must pay out at least 90% of annual rental earnings in dividends.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

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