3 breathtaking bargain stocks I’m hoping to buy in 2024!

Could big dividend yields and low earnings multiples make these ideal stocks to buy for the New Year? Here’s why I think the answer is yes.

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I’ve been scouring the London stock market for the greatest value stocks to buy next year. I’m seeking companies that trade on rock-bottom price-to-earnings (P/E) ratios and carry market-beating dividend yields.

Here are three cut-price UK shares I’ll be aiming to buy at the next opportunity.

Ramsdens Holdings

Many British stocks face considerable uncertainty in 2024 as the domestic economy sags. Shock news that UK GDP shrank 0.3% in October suggests that a potential recession is coming down the tracks.

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However, pawnbrokers like Ramsdens Holdings (LSE:RFX) perform strongly in such an environment. Indeed, this company printed record profits of above £10m during the 12 months to September as the cost-of-living crisis endured (exact full-year numbers are due to be confirmed in mid-January).

Ongoing expansion gives Ramsdens extra opportunity to grow earnings as well. It opened eight new stores in fiscal 2023 to take the total to 161. It has also invested heavily in its online channel to capitalise on the e-commerce boom.

Today the firm trades on a low P/E ratio of 8.7 times for 2024. It also carries a chunky 5.2% dividend yield.

The company faces severe competition from money lenders. But I believe this is priced into Ramsden’s valuation.

Primary Health Properties

Real estate investment trusts (REITs) have been struck by high interest rates more recently. Persistent inflationary pressures may mean interest rates stay higher for longer too, keeping net asset values (NAVs) of these stocks under pressure.

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.

Yet I still think Primary Health Properties (LSE:PHP) is an attractive value stock for the New Year. Moderating inflation, and the poor state of Britain’s economy, mean that rates are likely to come down. Besides, this UK property stock has excellent defensive qualities that make it a top pick in these uncertain times.

As its name implies, the FTSE 250 firm specialises in the rock-solid healthcare sector. Furthermore, the rents it receives are derived from government bodies. Finally, the company has its tenants tied down on long-term contracts (its weighted average unexpired lease term (WAULT) stood at 10.6 years as of June).

This all explains why analysts expect PHP’s long record of annual earnings growth to continue next year. So the company trades on an undemanding P/E ratio of 14 times. A large 7% dividend yield provides an added sweetener.

Greencoat Renewables

Investing in renewable energy stocks could be another good idea to build wealth next year. Not only is demand for cleaner power sources steadily growing. The stable nature of electricity demand makes these companies lifeboats in troubled times like these.

Greencoat Renewables (LSE:GRP) is one such stock on my radar. Today it trades on a P/E ratio of just 11.4 times for next year. It also packs a huge 6.9% dividend yield.

Purchasing green energy shares comes with acceptance that earnings may drop during periods of adverse weather. During cloudy and calm conditions power generation can drop off a cliff.

But Greencoat’s wide geographic wingspan helps to reduce this risk. The wind and solar farms it owns are spread across Ireland and mainland Europe.

I think this UK share could be a great long-term buy as the fight against climate change heats up.

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has positions in Primary Health Properties Plc. The Motley Fool UK has recommended Primary Health Properties Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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