UK shares have been sold off sharply as worries over the US economy have mounted. But I’m not running for the hills. In fact, I’m looking for top dividend stocks to buy at knock-down prices.
I’ve been investing long enough to know that volatility’s part and parcel of share investing. I also know that, over time, the stock market’s always recovered, and that those who buy when prices are down have a chance to maximise their returns over the long term. Unfortunately, I don’t have any spare cash in my investing account to make the most of last week’s market slump.
If I did, here are two dividend-paying bargains I’d buy today. Aviva When the US economy catches a cold, the whole world sneezes, as the saying goes. But I believe the fresh decline in ( ) shares makes the company — which operates in the UK, Ireland and Canada — an even more attractive value buy.
The Footsie company now trades on a forward price-to-earnings (P/E) ratio of 10.5 times. And its sits at 7.
4%, more than twice the index average. Despite the threat of US contagion, I think things are looking up for the financial services giant. Interest rate cuts last week will likely boost demand for its life insurance, pension, and other discretionary products.
And more Bank of England trimming could be coming down the line very soon. Aviva’s massive general insurance operations should continue to offset weakness elsewhere in the business. Although that weakness remains an issue, spending on house, car.
