Here are two that institutional analysts believe are significantly undervalued right now, and could deliver outstanding returns over the next 10 years to 2036.

1. Victrex: a battered materials specialist

Victrex (LSE:VCT) is one of the world’s leading manufacturers of high-performance PEEK polymers. These are specialised ultra-durable, lightweight materials used in the aerospace, automotive, medical device, and semiconductor industries.

The stock has fallen nearly 40% from its 52-week high, yet the underlying business continues to generate significant cash. As such, dividends have continued to flow, pushing the yield to a remarkable 10.1% – one of the highest in the FTSE 250.

Analysts at Berenberg and Citi are both issuing price targets of 695p and 700p, respectively, suggesting that a chunky 25% discount may exist.

As Victrex’s H1 2026 results noted, revenue is growing despite near-term margin pressure caused, in part, by inventory destocking headwinds. That’s a signal that the core business and underlying demand remain intact and the company is merely suffering from a temporary cyclical downturn.

This perfectly demonstrates the cyclical nature of Victrex’s business. And while the market will eventually recover, there’s a big question mark over the timeline of this recovery.

A prolonged slowdown in automotive and aerospace production weighs heavily on demand for PEEK polymers. And it’s why analyst opinions are a bit split, with five recommending to Buy, six recommending to Hold, and two putting Victrex in the Sell category – a reflection of the genuine uncertainty about the pace of recovery.

2. Barratt Redrow: a deep-value housing play

Barratt Redrow (LSE:BTRW) was formed from the merger of two of the UK’s largest housebuilders, creating a business with enormous scale and a powerful position in the structurally undersupplied UK housing market.

Of the 19 analysts following the business, 15 rate the stock a Buy, with an average 12-month price target of 414p against a current share price of around 257p. That’s a 61% potential capital gain for value investors today. And with the UK government still committed to building 1.5 million homes, the structural tailwind for housebuilders looks powerful over the next decade.

The bear case, however, is real. The post-merger integration of Barratt and Redrow is still ongoing, and execution risk remains elevated. Higher mortgage rates continue to weigh on buyer affordability, and the company faces a significant fire safety remediation bill that could pressure free cash flow for years to come.

For patient investors with a 10-year horizon, these risks may prove temporary. But they shouldn’t be taken lightly.

The bottom line

Both of these value stocks are trading at meaningful discounts to analyst price targets.

Of course, neither stock is a guaranteed winner. The cyclical and operational risks are very real and could leave investors bitterly disappointed.

But providing both companies continue successfully navigate through their near-term challenges, I think both Victrex and Barratt Redrow are worth a deeper dive today.

After all, the best opportunities rarely come gift-wrapped, and that’s exactly what could make these two so interesting right now.

The post Expert picks: 2 top value stocks to buy and hold until 2036? appeared first on The Twelfth Magpie.

So is this a screaming buying opportunity? Or a classic value trap for investors to avoid?

What does Victrex actually do?

Victrex’s a world-leading manufacturer of PEEK polymers – a high-performance thermoplastic used across demanding sectors including aerospace, automotive, medical devices, electronics, and industrial engineering.

And as one of the world’s leading pioneers of this niche and versatile material, Victrex has historically commanded strong pricing power that, up to 2021, delivered outstanding shareholder returns.

So what went wrong?

Why’s Victrex in the doghouse?

There are essentially two primary catalysts behind Victrex’s recent downfall:

• Pandemic-driven supply chain disruptions led to overstocking by customers, resulting in a global inventory glut.
• Higher interest rates have weighed heavily across virtually all of Victrex’s target markets.

The impact of this is clear looking at the group’s latest results. Underlying pre-tax profits tumbled 21% in 2025 on the back of a less profitable product mix and nasty currency exchange headwinds. Meanwhile, it’s recently completed a manufacturing facility in China, which was supposed to be a new growth engine, but has so far proven to be a bit of a headache.

In 2026, this weaker performance has seemingly continued with both volumes and revenues falling by mid-single digits during the first quarter. And it seems its ambitious longer-term ‘mega-programmes’ are also being quietly scaled back to reduce near-term costs.

So far, a sustained operational and financial recovery has proven elusive. And 2026 looks likely to be another transitional year. But looking towards 2027, some promising signs seem to be emerging.

Is there a bull case?

Despite the gloom, there are genuine reasons for optimism. Even with a massive 9.5% yield, management’s maintained the annual dividend at 59.56p per share – signalling strong conviction in the long-term outlook.

Meanwhile, new CEO James Routh is driving a broader operational review targeting “commercial, cost and operating efficiencies”, which could meaningfully start to lift earnings from depressed levels. And this positive impact could be even further amplified by an eventual wider cyclical recovery for PEEK demand across its end markets.

That said, maintaining dividends at almost 60p is a risky move considering underlying earnings per share only reached 43.9p, putting the payout ratio at an alarmingly high 135.7%.

In the short term, that’s not necessarily disastrous. But if management’s expected market recovery doesn’t materialise in time, shareholders could not only suffer a dividend cut, but see the balance sheet significantly weakened as well.

So what’s the verdict?

Victrex’s long-term opportunity remains genuinely enormous. The company estimates its total addressable market could be five times larger than its current revenue stream, with PEEK demand forecast to grow strongly over the coming decade.

Personally, I want to see a bit more recovery progress before considering this value stock for my portfolio. But seeing such a growth opportunity on sale for just 14.4 times underlying earnings is pretty rare. So for contrarian investors willing to be patient, a closer inspection might not be a bad idea.

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On paper, that means investors could be looking at a juicy passive income opportunity. But a high yield is only as good as the underlying earnings supporting it. And if cash profits start falling behind, this seemingly lucrative income opportunity could become an income trap.

So, let’s figure out which camp Victrex shares belong to.

Why is the Victrex yield so high?

Victrex is a global leading manufacturer of PEEK polymers – a high-performance lightweight thermoplastic used throughout the automotive, aerospace, medical, and industrial engineering sectors.

However, a global inventory glut combined with higher interest rates has weighed heavily on PEEK polymer demand across most of its target markets in recent years. As such, Victrex shares haven’t exactly been stellar performers of late. In fact, the stock is down close to 70% since April 2021. And even in 2026, the shares have continued to slip.

Despite this cyclical downturn, management has nonetheless maintained shareholder payouts, resulting in the yield climbing from around 2.5% to over 10% today.

The question investors now have to answer is whether or not the cycle is approaching its long-anticipated recovery.

Green shoots are emerging

In its 2025 fiscal year (ending in September), some encouraging trends started to emerge.

After years of customers relying on excess pandemic-era inventory, the destocking headwinds finally started showing signs of slowdown down. And while a less favourable product mix still resulted in underlying profits suffering, that too might soon start to change.

Following its latest trading update in February 2026, management’s profit improvement plan is now underway with a minimum savings target of £10m per year by September 2027. As such, the company has described 2026 as a “transitional year”, with a step up in volumes, growth, and profitability expected in 2027 and beyond.

Risk versus reward

Obviously, seeing early signs of recovery is promising, as is the expected long-term trajectory of the global PEEK polymer market. However, there still remains a lot of uncertainty surrounding this business, especially for its dividend.

Why? Because as things stand, the company is paying out more in dividends than it’s generating in profit… a lot more.

For reference, Victrex’s dividend per share in 2025 stood at 59.56p versus an earnings per share of just 32p. And subsequently, management has been taking on debt to continue rewarding shareholders.

Needless to say, it’s a risky move. And if the expected market rebound fails to materialise or another macroeconomic headwind emerges, delaying the recovery, the company could end up in a deep financial hole.

The honest verdict

Victrex’s lofty dividend yield is a reflection of the non-trivial risk surrounding this business. There is a valid bull case to be made if market conditions improve as expected. But any further delays or disruptions could quickly wipe out such hopes, leaving investors vulnerable to a dividend cut.

Personally, the risk’s too high for my tastes. That’s why I’m looking at other high-yield income opportunities right now.

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A combination of external and internal pressures has dragged down the share price over the last 12 months. And yet it remains confident in rewarding loyal shareholders with juicy dividends. So much so that the FTSE 250 stock now pays a staggeringly-high 9.9% yield!

So could this be a rare opportunity to lock in an awesome passive income at a massively discounted price? Let’s find out.

The Victrex puzzle

As a quick introduction, Victrex is the world’s largest manufacturer of PEEK– a high-performance engineering polymer with pretty exceptional material properties.

PEEK’s chemically inert, biocompatible with the human body, electrically and thermally resistant, and offers impressive strength, all while being incredibly lightweight. As such, manufacturers within the automotive, aerospace, healthcare, and electronics sectors are increasingly substituting traditional metals such as aluminium with this polymer. And the steady increase in demand is reflected in the group’s rising PEEK volumes.

Yet, despite this higher demand, revenue and earnings are still struggling, sending the share price down almost 40% in the last 12 months. What’s going on?

Good strategy meets bad execution

While PEEK volumes have been rising, a combination of shifting product mix and stiff Chinese competition has resulted in average selling prices suffering.

As such, revenue growth over the last five years has pretty much flatlined. And the profit picture is even less impressive, as heavy investment into a new manufacturing plant in China weighed down on the bottom line.

The plant was supposed to improve Victrex’s competitive position in a key market. But this once-highly anticipated growth catalyst has so far proven to be a bit of a headache, with initial volumes struggling to ramp up and no clear breakeven timeline available.

Yet despite these stumbles, dividends are still being paid. How?

What’s behind the 9.9% yield?

While disappointing, operations at Victrex’s China plant are slowly getting back on track. And management is also expecting to deliver £10m in annualised savings by September 2027.

At the same time, new contracts are emerging from the group’s ‘mega programme pipeline’. This includes the firm’s Magma project, where PEEK piping is used for deepwater oil & gas production, with revenues expected to start materialising in 2026.

As such, management appears fairly confident about Victrex’s financial outlook, describing 2026 as a transitional year before a solid earnings recovery story kicks off in 2027.

In the meantime, dividends are being maintained with debt. That’s fine if the promised turnaround is successfully delivered. But if this expected recovery fails to materialise, Victrex could be stretching its balance sheet too thin, ultimately leading to a painful payout cut.

So, what’s the verdict?

The possibility of an earnings inflexion in 2027 is very real. But it relies on solid execution – something that Victrex hasn’t exactly demonstrated in recent years.

So, while a £5,000 investment does snap up 827 discounted shares and unlocks a near-£500 passive income, it comes with a high level of risk. And personally, I think there are other income stocks that look far more secure right now.

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To try and narrow down the search, I asked ChatGPT to identify the country’s cheapest share. This is what the software told me. 

Caution!

Before giving the answer, the programme warned that it was unable to identify the most undervalued stock “with absolute certainty”. It pointed out that there were a number of different valuation techniques available.

ChatGPT then listed a few shares that appear to be trading below their “estimated intrinsic value”. Warren Buffett describes this as the “discounted value of the cash that can be taken out of a business during its remaining life”. He says it’s the “only logical approach” to evaluating investments.

The alternative Magnificent Seven?

The seven identified by the software were On the Beach Group, Victrex (LSE:VCT), Brickability Group, PageGroup, Motorpoint Group, Pinewood Technologies Group, and Nichols.

I then asked it to pick its favourite. It said it would “lean towards” Victrex. Why?

Well, it suggested the producer of polymers had a “structural niche advantage” and that its recent share price fall could be a buying opportunity. It also highlighted its “strong” balance sheet and good dividend history.

Of course, relying on a piece of software to make investment decisions isn’t a good idea. Artificial intelligence tools have earned a reputation for making some glaring errors. In my view, it’s essential to undertake some human-led research before parting with any cash.

So that’s what I did. I decided to take a closer look at Victrex.

What did I learn?

The group manufactures high-performance polymers (very strong plastics), which are used in a wide variety of applications. Due to the specialist nature of its activities, it has relatively few competitors.

But its share price has come under pressure over the past five years. It’s fallen 70% since March 2021.

The principal reason is that market conditions have resulted in the group selling more of its lower margin products. For example, in volume terms, the company sold 12% more during the year ended 30 September 2025 (FY25) but its revenue was only 1% higher compared to FY24.

Its FY21 gross profit margin was 54%. During FY25, it fell to 45.3%.

Other problems include tariffs and teething problems associated with starting production at its new factory in China.

Over the past five years, the group’s dividend has been remarkably consistent. In fact, it’s remained unchanged at 59.56p a share. It means the stock’s now yielding an amazing 9.3%. However, a flat payout and huge yield could be a warning sign of an impending cut.

Encouragingly, the group has little debt.

So is the stock cheap?

Applying some of the valuation techniques that ChatGPT identified, including the price-to-earnings (P/E) ratio, does suggest the stock’s reasonably priced, certainly by recent standards.

However, I’m unconvinced Victrex is undervalued. Its financial performance is going in the wrong direction, which explains why its share price is declining. Also, the group said 2026 will be a “transitional year”, which is really a polite way of warning shareholders not to get too excited. Therefore, I don’t want to invest.

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But on rare occasions, I find a company with a high yield that’s well-covered and sustainable. Such instances can be an excellent opportunity to boost a portfolio’s average yield.

Currently, Victrex (LSE: VCT) looks like just such a stock. But do the benefits outweigh the risks?

A high and reliable dividend yield

Victrex is a world-leading manufacturer of PEEK, a super-strong plastic used in planes, cars, medical gear and electronics. From mobile phones to medical implants, it’s found everywhere — so demand isn’t an issue. But trade tariffs and a tough market tore the shares down 26% in the past 12 months.

But since bottoming-out at 589p last November (2025), they’ve recovered 14.6%.

The wider fall in price has ramped up the yield, pushing it past 8%. And now that a recovery looks genuinely likely, it’s appealing to both income and growth hunters. But can it maintain that high yield?

Recent earnings results

Last year’s numbers weren’t great due to currency swings, a weak medical market and startup costs at its new China factory. Even while sales volumes rose 12%, revenue dipped and underlying profit before tax fell 21%. Earnings per share (EPS) dropped 15% to 43.9p.

Yet through it all, the board kept the dividend flat at 59.56p per share for the year, with the next payment due at the end of February.

And that’s the real draw: a high-yielding dividend stock with proven reliability. Payouts have grown around 2.8% a year even while margins have shrunk. Plus, cash coverage remains sufficient 1.23 times even with the dip in profits.

What’s more, debt’s minimal at only £49m, with plenty of cash to cover interest payments and a balance sheet that looks solid.

Currently trading on a forward price-to-earnings (P/E) ratio around 14, it’s far cheaper than historical averages. PEEK demand’s expected to grow as planes and cars become lighter and medical uses expand.

But right now, medical is soft with destocking while Asia competition’s heating up. Plus, China factory costs dragged profits down by £8m last year and are likely to do so again this year.

What does this mean for investors?

Right now, the core concern is a lack of earnings visibility. While medical implementations are expected to recover, that isn’t guaranteed. If profits don’t improve, the new China factory costs could ramp up debt. 

At the same time, the economic slowdown is hitting big customers like those in aerospace. If volumes stall or competition bites, dividends could come under pressure despite the coverage.

For a UK investor happy with moderate risk, Victrex is still worth considering — given its high yield, healthy finances, and decent growth potential (if sectors rebound).

It’s not a sure thing but, in my opinion, it could be a rare opportunity to boost the average yield in a diversified portfolio.

The post An 8.5% dividend yield? I’m thinking of buying shares in this recovering FTSE 250 income gem appeared first on The Twelfth Magpie.

What’s wrong with that picture?

Actually: nothing is wrong with it!

It is possible to earn a four-figure annual passive income doing exactly what I said above. Not guaranteed (as dividends never are and they form the basis of this plan), but possible. Here’s how.

Sticking to businesses I know and understand

Say the investor spreads the £20k evenly across 10 companies, staying diversified. I am not talking here about tiny obscure companies, but proven, long-established blue-chip businesses.

At a 7% compound annual growth rate, such a portfolio ought to be worth around £39k a decade from today. At an 7% dividend yield, that would produce annual passive income streams of around £2,754.

Charges can eat into returns, so it is important to choose the right Stocks and Shares ISA.

Weighing risks and rewards

Those 10 shares should be diversified across a range of sectors.

A red hot FTSE 100 means that, while until recently a number of shares offered a yield of 7% or more, at the moment the only ones that do are Legal & General and Phoenix Group.

In the FTSE 250, Victrex (LSE: VCT), MONY Group, and PageGroup all currently offer yields above 8%. Some higher-yielding shares could mean someone hits the 7% target even including some shares yielding less than 7%.

There are other 7%+ yielders in the FTSE 250 too, including multiple investment trusts as well as shares with yields set to fall as dividends are cut: WPP is an example.

But above, I mentioned proven blue-chip shares. What that means may vary for different investors. With a wide range of yields available in both indexes, I think a 10-share portfolio yielding an average 7% is doable.

However, it is important to remember that a high yield can be a red flag that the City fears a possible dividend cut.

So care is required to prioritise smart share-picking over greed. No dividend is ever guaranteed to last. As a WPP shareholder, I know that all too well!

Passive income in practice

Lately, I have been adding to my existing shareholding in Victrex. A 69% share price drop in five years has pushed the FTSE 250 share’s dividend yield up to a whopping 8.4%.

But might this be fool’s gold?

After all, the dividend has been flat for years – hardly an encouraging sign.

The full-year dividend was maintained in December, but it was not covered by earnings. With a new boss taking over last month, I reckon the dividend could come under close scrutiny.

Still, Victrex’s proprietary polymer technology gives it pricing power when selling to clients who use it in critical applications like car safety.

Sales grew handily last year: volumes were up 12% last year. A trading update for the most recent quarter showed a sales volume decline, though. I am hoping that is a blip not a trend.

The problem is that average selling prices are down sharply, partly because Victrex is selling more low-margin products but demand for high-margin ones like its medical offering remain weak.

I see a risk that could continue, but reckon Victrex still has the bones of an excellent business.

The post Here’s how a 10-share, £20k Stocks and Shares ISA could earn £2,754 in annual passive income appeared first on The Twelfth Magpie.

That’s more than triple what large-cap index investors are earning right now. And with a £5,000 lump sum, investors can snap up around 720 shares, unlocking a £428.83 passive income in the process. So is this a good idea?

Why’s the yield so high?

High dividend yields are typically created due to one of two reasons. Either the company has massively increased shareholder payouts and the market hasn’t noticed (very rare), or something’s wrong. In the case of Victrex, it’s the latter.

While dividends have continued to flow, a series of operational challenges has seen Victrex shares take a near-30% tumble since February last year, pushing the yield up in the process.

Most notably, it’s been the botched launch of its highly-anticipated China manufacturing plant that’s put investors on edge. Early production quickly encountered unforeseen headwinds, resulting in management cutting volume guidance for 2025 from an original range of 100-200 tonnes of polymer volume down to just 50 tonnes.

This much slower than expected ramp-up put pressure on profit margins that were already being squeezed by inventory destocking headwinds, particularly from its higher-margin healthcare customers. And with institutional analysts downgrading their recommendations from Buy to Hold, it isn’t surprising to see sentiment suffer.

A buying opportunity?

Looking at the latest forecasts, the consensus from investing experts still largely seems to be a Hold recommendation. However, there’s room for some contrarian optimism.

The group’s latest quarterly trading update has seen revenue slip by around 6% year on year, down to £62.4m. Management places the blame on regular seasonality within its end markets. And subsequently, it reiterated that the business remains on track to meet full-year expectations.

At the same time, self-help initiatives are expected to deliver £10m in permanent annualised savings, with most of the benefits emerging in its 2027 fiscal year (ending in September).

In the words of its leadership, 2026 “will be a transitional year, with our Profit Improvement Plan helping us become a more efficient, growth-focused and performance-oriented company”.

Assuming the company can successfully execute its plan while improving economic conditions would certainly help restore demand for its speciality polymers, investors may indeed be looking at a rare opportunity to lock in an impressive yield from this income stock.

What could go wrong?

As things stand, shareholder dividends are at risk, with Victrex paying out more than its generating in free cash flow.

If market conditions improve, this may not ultimately matter since the company can dip into its cash reserves to fill the gap in the short term. But if demand, particularly from the healthcare sector, fails to materialise in time, dividends are indeed at risk of being slashed as Victrex seeks to preserve capital.

This uncertainty is why today’s yield is so high. And with the firm’s recent track record on operational execution being less than impressive, it’s a risk I’m not ready to take just yet. That’s why this income stock is staying on my watchlist for now, and I’m looking elsewhere for dividend opportunities. Luckily, I’m spoilt for choice.

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Nevertheless, there remain plenty of high-yield opportunities left to explore. In fact, here’s a basket of five stocks that offer an 8.8% overall average cash payout.

• Ashmore Group (LSE:ASHM) – 8%.
• Sequoia Economic Infrastructure – 8.6%.
• Victrex – 8.7%.
• Pagegroup – 8.2%.
• Ithaca Energy – 10.7%.

So are these income opportunities no-brainer buys in 2026?

Inspecting yields

While the prospect of earning a 10.7% yield from stocks like Ithaca is obviously exciting, it’s important not to forget that dividends are never guaranteed. And during challenging periods, companies are often forced to slash shareholder payouts to preserve capital.

That’s why before investing in any lucrative-looking dividend shares, investors must carefully consider both the risks and potential rewards. With that in mind, let’s take a closer look at the first company on the list – Ashmore.

Income from an asset manager

As a quick introduction, Ashmore’s an asset management business that focuses on investing in emerging market opportunities across both equity and debt instruments. And in the last few years, Ashmore’s investment performance has been quite impressive.

A wider emerging market rally has helped boost the investment returns, with the MSCI Emerging Market Index climbing by 44.5% since the start of 2024. That supported stronger investment returns.

The only problem is, Ashmore wasn’t able to fully capitalise on it. Why? Because this rally’s largely fallen under the radar of most investors who have reallocating capital towards US tech stocks. And with fewer assets under management, Ashmore’s fee-earning income is currently insufficient to cover dividends.

But that might be about to change.

Bull versus bear

Earlier this month, the company issued an encouraging trading update that showed a significant 8% increase in assets under management in the last quarter of 2025. This was partly driven by the continued strong performance of its investments. But more encouragingly, it has seen a $2.6bn surge in net client contributions – the first major net cash inflow since 2019.

That’s a critical pivot point. If inflows continue to accelerate throughout 2026, the group’s asset under management and, in turn, fee-earning opportunities could expand, supporting the group’s dividend. In fact, that’s why Ashmore shares have already surged more than 20% so far this year.

However, while encouraging, it’s important to remember there remains considerable risk. With a payout ratio of 144%, profits need to rise considerably. The group does have some substantial cash & equivalents on its balance sheet to help support dividends in the short-term. But over the long run, relying on the assets is obviously unsustainable.

In the meantime, while emerging markets are performing strongly, the rally isn’t guaranteed to continue. After all, currency weakness in Argentina and Brazil, alongside US-China trade tensions and growing conflicts in the Middle East, could potentially derail momentum.

Nevertheless, it’s an income opportunity that could be worth a closer look for investors with a higher risk tolerance. The same applies to the dividend shares on this list. Like Ashmore, they also have their own fair share of challenges, but a few could still hold promising long-term potential.

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Mid-cap company share prices have performed poorly compared to the UK’s biggest stocks over the past five years too. Does this mean we could be entering a new golden era for FTSE 250 investors, in terms of both growth and income? Let’s look at a couple of potential dividend winners.

Big 8.6% yield

When I look at Victrex (LSE: VCT), the first thing I notice is the shocking five-year share price performance, down a whopping 72%. But then I’m drawn to a very tasty forecast dividend yield of 8.6% — and reconciling the two is a bit of a puzzler.

Digging a bit deeper, I immediately see a potential pitfall. With full-year results in December, the high-tech polymer producer maintained its annual dividend at 59.56p. But underlying earnings per share (EPS) fell some way short of that at just 43.9p.

Can that level of payout be maintained until profits pick up again? Well, it looks like maybe it can. The company has a ‘Profit Improvement Plan’ underway, aiming to achieve savings of at least £10m with full annual benefits in 2027.

And it speaks of “dividends maintained at current level, provided net debt/EBITDA target range not exceeded; excess cash returns available via share buybacks or special dividends when net debt/EBITDA moves sustainably below 0.5x“. With a new net debt/EBITDA target range of 0.5x-1.0x, the liquidity seems to be there.

There’s a clear need for caution here, and I’ll remain wary until I see those earnings start to rise again. But I do think dividend investors should consider Victrex as a 2026 dividend stock candidate.

Covered by earnings

The MONY Group (LSE: MONY) share price has also fallen over the past five years, this time off by 31%. Surprisingly, that’s after shareholders have enjoyed rising earnings and dividends in the past three years, with bright forecasts ahead.

We see a lower forecast dividend yield than at Victrex, though still attractive at 6.8%. And this time, it looks like it should be strongly covered by earnings. For the first six months of the year, the finance services firm declared an interim dividend of 3.3p per share. Adjusted EPS of 9.3p came in at 2.8 times that. And net debt was down a very handy 27%, to just £18.4m.

The company’s financial comparison offerings do face competition. They also face changing consumer patterns and preferences. How many, having used comparison services to pick what they want, will simply stick to that in the years ahead?

It’s a risk, but it doesn’t deter forecasters, who see Mony’s earnings continuing the trend of the past few years. Between 2024 and 2027, there’s an EPS increase of 25% on the cards… with 14% dividend growth predicted too.

Mony ticks a number of the most important boxes for me for a long-term dividend stock candidate.

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