RE: Bought today.19 Aug 2022 17:10
Charlie Keough.. Motley 4/8/22
The major pull is its whopping 12.5% dividend yield, which is considerably better than the FTSE 100 average of 3%-4%. With inflation spiking to a new 40-year high of 9.4% in June for the UK, this also comfortably covers this.
So, regardless of these headwinds, I’d still buy Persimmon shares today. My main attraction is its meaty dividend yield, which will create a nice passive income stream. And with its low valuation, alongside a positive long-term outlook with increasing housing demand, I’d be happy to open a small position in the FTSE 100 share.
With this said, I’m not giving up on Persimmon just yet. Many stocks have seen their share prices dented this year, so it’s not alone in its struggles.