Here are three of my favourites value shares for the New Year. Each offers a brilliant blend of earnings and growth. Phoenix Group Weakening economic conditions in the UK are a worry for cyclical shares next year.
Financial services provider ( ) is one whose profits are susceptible to tough conditions. In this landscape, demand for discretionary products like life insurance and wealth management tends to slump. But with interest rates expected to continue falling, City analysts think 2025 could be a bright year for the Footsie firm.
Annual earnings are tipped to rise 22% next year. This leaves it trading on a of nine times. With dividends also tipped to rise, the on Phoenix shares is a whopping 11%.
That gives it the largest dividend yield of the FTSE 100 for next year. And unlike with many high-yield stocks, a strong balance sheet — the Solvency II capital ratio was 168% as of June — puts Phoenix in great shape to meet current dividend estimates. BAE Systems Unfortunately, 2025 looks set to be another year of conflict.
War in Ukraine is intensifying, while geopolitical ruptures in the Middle East are widening. Meanwhile, worries over broader Russian expansionism and Chinese foreign policy continue to grow in the West. This all means sales at defence giant ( ) are predicted to keep rising, driving a 12% increase in year-on-year earnings.
It also means the Tier 1 arms supplier is tipped to keep its long-running policy of dividend growth going. Subsequently, the dividend yi.