Just before Rachel Reeves delivered her spring statement yesterday (26 March), the FTSE 100 was at 8,684. That was 2.5% off its record high. Thirty-three minutes later, after she sat down, it was barely unmoved at 8,681. Given there was little new in what the Chancellor said, this isn’t surprising. Having said that, I thought there would have been more of a market reaction to the halving of Britain’s growth forecast for 2025.

But the movement in the overall value of the index hides some individual winners and losers.

During the course of the Chancellor’s speech, Babcock International Group (LSE:BAB) gained the most (0.65%) of all the stocks on the index. And it continued to rise after she had finished speaking.

Rolls-Royce Holdings, which derives approximately a quarter of its revenue from its defence division, was the next best performer.

In contrast, Severn Trent was the biggest loser, falling 0.76%. I suspect this reflects ongoing problems in the sector as the water industry wasn’t mentioned in the spring statement.

An uncertain world

Given that the government wants to establish the UK as a “defence industrial superpower”, it’s easy to see why Babcock’s share price did well. The government has already committed to increasing military spending to 2.5% of gross domestic product from April 2027. It now plans to spend an additional £2.2bn in the next financial year.

It also wants to streamline the procurement process to make it quicker and more agile. In addition, extra export finance will be made available to help companies in the sector sell more overseas.

A British success story

Since March 2020, Babcock has seen its share price more than double. As a result, it was recently promoted to the FTSE 100.

Encouragingly, the UK government generally likes to ‘spend local’ when it comes to defence, which should help the group continue to expand. Presently, it’s the second largest supplier to the Ministry of Defence. Importantly, it has a very small exposure to the US, which, under Donald Trump’s presidency, is looking to reduce its military spending.

And the stock appears to offer better value than that of its closest peer in the index, BAE Systems. For the year ending 31 March 2025, analysts are forecasting earnings per share for Babcock of 45.5p. This implies a forward price-to-earnings (P/E) ratio of 16.2. The P/E ratio of BAE Systems is 20.9. If the two were valued on the same basis, Babcock’s share price would be 28% higher.

However, I do have some concerns. Babcock incurred £90m of additional costs when building five ships for the Royal Navy. Its dividend is also tiny. Based on amounts paid over the past 12 months, the stock’s presently yielding just 0.7%.

However, for those investors who are comfortable investing in the sector, I think Babcock’s a stock they could consider. The Chancellor’s spring statement has reaffirmed the government’s commitment to the industry, which it believes can help contribute to economic growth.

Of course, successful investing requires taking a long-term view. Hourly movements in share prices should be ignored. But I think this analysis gives an insight into how institutional investors — those with deep enough pockets to move share prices significantly — are assessing the impact of the Chancellor’s announcements.

Despite the heightened interest in renewables, since March 2020, the FTSE 250’s three solar energy funds have under-performed the wider market. As a result, they now trade at a significant discount to their net asset values. And their yields are all close to — or in excess of — double figures.

Difficult times

The directors of Foresight Solar Fund (LSE:FSFL) are particularly frustrated at the failure (as they would see it) of investors to recognise the underlying value of its assets. They are now considering various strategic options and recently said: “The Board is of the view that consolidation is likely to be a major feature in the sector in the year ahead.”

Some of the sector’s recent problems can be blamed on a relatively low level of irradiation. In 2024, Foresight said the UK experienced the lowest number of hours of sunshine since 2013, which meant its portfolio generated 7% less electricity than budgeted.

To try and mitigate against volatile earnings, the fund has hedged 88% of anticipated revenues for 2025 at a price of £86/MWh. As for 2026, 69% of expected income has been fixed at the same price.

Expensive debt

Borrowing costs also appear to be weighing on the solar industry.

At 31 December 2024, Bluefield Solar Income Fund had total debts of £566m. That’s 6% more than its current market cap (£534m). I think it’s fair to say that interest rates haven’t fallen as quickly as most would have expected. This means the fund’s borrowing costs are higher than anticipated. And this makes the return from solar assets less attractive than anticipated, contributing to its shares trading at a discount.

Bluefield’s directors say “something needs to change” and have launched a “Perception Study with many of the larger shareholders, to assess their views and reflect on the way forward”.

Good for income

Currently, NextEnergy Solar Fund trades at the biggest discount.

But on the positive side, its falling share price means the stock’s now yielding 12.4%. Since listing in 2014, it’s increased its dividend every year. Of course, there are no guarantees when it comes to payouts. However, these types of funds generally have steady and predictable payouts. The long-term nature of their contracts and their ability to hedge future prices gives them a greater certainty over their income than businesses that are dependent on more conventional markets where consumers tastes can change at short notice.

Metric	Foresight Solar Fund	Bluefield Solar Income Fund	NextEnergy Solar Fund
Current share price (pence)	79.7	90.2	67.8
Discount to net asset value (%)	29.1	28.4	30.8
Dividend – last 12 months (pence)	8.0	8.8	8.4
Yield (%)	10.0	9.8	12.4
Group debt (£m)	272	566	333
Market cap (£m)	444	534	388

Final thoughts

Valuing unquoted assets, like solar farms, is subjective. Small changes to modelling assumptions can lead to large variations in valuations. However, even allowing for a large margin of error, the current discounts on these three funds seem excessive to me.

But it does appear as though the sector has fallen out of favour with investors. A combination of higher power prices and lower interest rates is probably what’s needed to get their share prices moving in the right direction. And there’s no guarantee that this will happen. However, as long as they are aware of these risks, income investors could consider all three for the generous yields that are currently on offer.

Taylor Wimpey’s (LSE: TW) share price has slumped 33% from its 20 September 12-month traded high of £1.69.

I think this has been driven almost entirely by two factors. The first was the dismal state of the housing sector for much of the past five years. This began with the spread of Covid from the beginning of 2020, which paralysed housing demand.

The invasion of Ukraine by major oil and gas supplier Russia pushed energy prices sky-high, fuelling inflation. This caused interest rates to surge and mortgage rates to hit 16-year highs. The resultant cost-of-living crisis added to the housing sector’s troubles.

Some optimism returned to the market as a new Labour government promised to build 1.5m new homes over five years. The first cut in the UK base rate since March 2020 occurred on 1 August 2024, further bolstering such hopes.

However, as quickly as it came, so it went, with October’s Budget widely said to be potentially inflationary and growth damaging.

How does the company look now?

Taylor Wimpey’s 2024 results released on 27 February showed a 32.4% year-on-year drop in profit before tax to £320.3m. This was way below analysts’ projections of £400.8m.

Revenue was also down by 3.2%, to £3.401bn and basic earnings per share fell 37.4% to 6.2p.

As a result of these numbers, the firm reduced its dividend by 1.3% to 9.46p. However, based on the current £1.13 share price this still gives an ultra-high-yield of 8.4%. By contrast, the average yield for its host stock index – the FTSE 100 — is just 3.5%.

Looking ahead, the firm expects to increase 2025 volumes to 10,400-10,800 homes. Consequently, it forecasts operating profit this year to be in line with analysts’ consensus of £444m.

I think a key risk here is that inflation continues to rise, pushing interest rates back up over time. This could deter people from buying new homes. Another risk is that the government fails to build the homes it has promised, as have so many previous governments.

How does the share valuation appear?

Consensus analyst forecasts are now that Taylor Wimpey’s earnings will increase by 17% a year to the end of 2027. It is exactly this growth that powers a firm’s share price and dividend higher.

Given this, together with other analysts’ figures and my own, a discounted cash flow analysis shows Taylor Wimpey shares are 39% undervalued.

Therefore, the fair value of the stock is £1.87, although it could go lower or higher than this.

Will I buy the shares?

I focus nowadays on stocks that yield 7%+ as I aim to live off dividends while reducing my workload. Taylor Wimpey certainly fits the bill here.

I also want these shares to be significantly undervalued, and the builder fits that bill too.

Crucially though, I also need to feel positive about the prospects for the sector in which a firm operates. But I do not feel positive about the UK housing sector.

I have seen a succession of governments fail to hit their housing targets, and I think this one may fail too. I also believe there is every chance that the cost of living will keep rising, which will deter home buyers. So, I will not buy this stock right now.

Many people use a workplace pension scheme to invest for retirement, but I think a Self-Invested Personal Pension (SIPP) can be a more attractive option. One key advantage of a SIPP is that investors have greater flexibility regarding their investment choices. This allows them to build a portfolio tailored to their risk appetite and specific objectives.

According to the ONS, the average UK salary is currently £36,972 a year. Here’s how an investor can try to secure a passive income flow that matches that figure from dividend shares held within a SIPP.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Earning £37k in annual dividends

Investments inside a SIPP don’t attract capital gains tax or taxes on dividends. Consequently, investors can buy and sell shares without worrying about what they might owe in taxes.

Moreover, investors get a helping hand from the government via tax relief. For a basic rate taxpayer, that’s 20%. Essentially, this means someone investing £100 in a SIPP will receive a £25 reclaim automatically from HMRC, resulting in a £125 contribution!

Aiming for nearly £37,000 in annual dividends is no mean feat, but it’s achievable. If the average dividend yield across an investor’s portfolio was 5%, they’d need £739,440 in stocks to turn this dream into reality.

Crunching the numbers

The amount individuals need to invest to hit this target varies considerably depending on their timeframe and portfolio growth rate. To illustrate this, the table below shows the monthly contributions required with 6% annualised growth, accounting for 20% tax relief.

Time period	Required monthly contribution
20 years	£1,275
30 years	£587
40 years	£296

At 8% growth, the numbers are as follows:

Time period	Required monthly contribution
20 years	£999
30 years	£395
40 years	£169

At 10% growth, here’s how much investors need to contribute:

Time period	Required monthly contribution
20 years	£773
30 years	£260
40 years	£93

Choosing the right shares and getting started as early as possible is crucial to building a healthy SIPP for the lowest possible contributions. That’s because compound returns can do the heavy lifting over longer periods.

Granted, investing in stocks isn’t a guaranteed way to build wealth. A poorly constructed portfolio may result in slower growth or even the destruction of capital. In addition, dividends aren’t assured since companies can cut or suspend shareholder distributions.

An income stock to consider

Nonetheless, buying the right mix of dividend shares can be a golden ticket to a comfortable retirement. One worth considering is FTSE 100 tobacco stock Imperial Brands (LSE:IMB), which offers a 5.6% dividend yield.

Arguably, cigarette manufacturing is a sunset industry. With a dwindling consumer base and government health initiatives designed to eliminate smoking entirely, Imperial Brands faces its fair share of challenges.

However, trading at a forward price-to-earnings (P/E) ratio of just 8.8, the share’s risks are reflected in its low valuation. The business has a long history of reliable profits and strong cash flow generation, which shouldn’t be dismissed lightly.

The latest full-year results show the company’s moving along nicely. A 4.6% expansion in underlying profit to £3.9bn and a 4.5% dividend boost to 153.42p per share are encouraging signs.

With a growing range of alternative nicotine products, such as vapes, I think Imperial Brands shares could still have a bright future.

By providing protection from capital gains tax and dividend tax, the Stocks and Shares ISA and Lifetime ISA can significantly boost an individual’s chances of building long-term wealth.

Even someone with £226 a month to invest in UK shares, funds and trusts has an opportunity to make a six-figure retirement fund. This is the average amount that modern Britons currently save each month, according to NatWest.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Decision time

The first thing to consider is what sort of ISA to use. The Lifetime ISA can be opened by those aged 18-39, and those who invest receive a tasty government top-up (£1 for every £4 the account holder deposits).

However, there are also government penalties of 25% on withdrawals before the age of 60, for any reason other than buying a first home. What’s more, Lifetime ISAs can also be contributed to only up to the age of 50.

Stocks and Shares ISAs meanwhile, don’t feature government charges or age restrictions beyond 18. But on the downside, they also don’t include that lovely top-up like the Lifetime ISA.

It’s worth mentioning that the Stocks and Shares ISA annual contribution limit is £20k versus £4k for the Lifetime ISA. But for our person targeting a £226 monthly investment, this isn’t a problem.

The plan

The good news is that Britons can hold one of each of these ISAs to contain shares and other assets. So if they choose to, our regular investor could use both to try and maximise their returns.

Here’s how this could work in practice. Let’s say our person has just turned 35 and plans to retire at the State Pension age of 68. They have no plans to pull money out before they reach retirement, so don’t have to worry about withdrawal charges on the Lifetime ISA.

They could invest £226 for 15 years in a Lifetime ISA, until the cut-off age of 50. After this point, they could continue investing using a Stocks and Shares ISA.

If they achieved an average annual return of 9% with their investments, they would — over that 23-year period — have a total retirement fund of £229,826 spread across both ISAs (including government top-ups).

Global perspective

With a diversified selection of shares, funds and trusts, history shows us that this 9% figure’s a realistic target. Remember though that past performance is no guarantee of future returns.

The iShares Core MSCI World ETF (LSE:IWDG) could be one great exchange-traded fund (ETF) to consider today. This pooled investment has delivered an average annual return of 10.8% since its creation in 2017.

If this continues, our investor would have an even better £277,363 to retire on by the time they hit 68.

This global ETF has holdings in 1,353 companies across the globe and spanning different sectors. These range from US information technology specialists Nvidia and Apple, to Japanese motor manufacturer Toyota, UK consumer goods giant Unilever and Swiss healthcare provider Novartis.

Funds like this can still decline in value during broader stock market downturns. This particular one has declined 3.1% since the start of March.

But over the long term, their ability to capture investment opportunities while also spreading risk can be an effective way to build a big ISA

With the new £20,000 ISA allowance just round the corner, it could pay to clear up a few misunderstandings.

1: You can’t take money out

If we put cash into an ISA and then take it out, do we lose that part of our allowance? Actually, some providers are more flexible with their Stocks and Shares ISA offerings.

Suppose we pay in £5,000. Then we decide we need the cash and take it out again before buying any shares. Traditionally, that’s £5,000 used from our annual allowance. But some flexible ISAs will let us replace cash that we hadn’t yet used to buy shares without losing any allowance.

It differs between ISA providers, so be sure to check.

2: Cash ISAs beat inflation

UK inflation stands at 3%. And the best one-year Cash ISA rates are around 4.5%. If inflation falls in the next 12 months, that could be an even better deal.

But when inflation was under 2% and Bank of England base rates were at 0.5%, it was hard to find a Cash ISA paying more than 1%. We could avoid tax, but still lose money in real terms.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

So, this is perhaps only a partial myth. And a Cash ISA can be a good way to save for a rainy day, or for those who want guaranteed interest with no risk. But for serious long-term investment, a Stocks and Shares ISA is the champion in my book.

3: A Stocks and Shares ISA is hard

Picking the right shares, and knowing when to get in and out, surely needs expert knowledge. And the UK’s thousands of ISA millionaires are all financial whizzkids glued to their trading screens all day, right?

That could hardly be further from the truth.

In reality, ISA millionaires put more of their money into investment trusts than other investors, and leave it there.

Scottish Mortgage Investment Trust (LSE: SMT) is one of the most popular. It invests in high-tech growth stocks, and includes Amazon, Meta Platforms, Taiwan Semiconductor Manufacturing, and Nvidia in its top 10.

Some investors buy and sell these stocks regularly, trying to hit the bottoms and tops. They often get the timing wrong, but they can also build up trading charges quickly.

Buy and hold

The really succesful investors simply buy stocks like this, getting them some diversification to soften the growth risk. And they just hold for the long term, through the ups and downs. And even with all the recent Nasdaq volatility, Scottish Mortgage shares are still up 75% in five years.

Oh, and over the past 10 years they’ve gained more than 250%. The Nasdaq volatility does show along the way, mind.

Scottish Mortgage is still a riskier investment than others. But the most successful ISA investors buy safer investment trusts too, with ones that go for dividends from mature UK blue-chip companies being popular.

So that’s the real secret of the ISA millionaires. They spread their money to reduce the risk, resist short-term trading, and just leave it there to compound over the long term. Why make it harder?

This morning (26 March) UK inflation data for February came out. It revealed a surprise fall from 3% last month to 2.8%, giving a boost to the FTSE 100 and FTSE 250 in the morning. Yet this data and the implications will cause different reactions for some sectors and FTSE stocks. Here is one that I think could do well, alongside one that could struggle.

Boosting profit margins

Tesco (LSE:TSCO) is one company that could really benefit from inflation trending back lower in coming months. One of the key components that goes into the consumer price index for inflation is groceries and other everyday goods that Tesco stock. The store’s customers are sensitive to rising prices. As a result, when inflation is very high, Tesco experiences lower demand. This was something that we saw during 2022, when it climbed above 10%.

On the other hand, part of the 12% share price rally in the last year has come as inflation has shown signs of being back under control. The 2024 annual results mentioned how the net concern about inflation from customers is now down to 50% from 70% at the start of the
year.

From a financial perspective, the report spoke about a focus on growing absolute profits while maintaining margins. One way it’s seeking to do this is by “targeting productivity initiatives that at least offset inflation in the medium term”. This shows me that the business has learnt from the problems caused by rising prices back in 2022 and is taking steps to address this in case inflation rises in coming years.

One risk is the tough competition in this sector. Supermarket chains have thin profit margins at the best of times, so any cost increase could flip the business from a profit to loss.

Pressure on pricing

National Grid (LSE:NG) is a firm that could struggle with low inflation. This might sound odd, but hear me out. As an energy utility company, National Grid’s revenues are often linked to inflation through regulated price controls. Lower inflation can lead to reduced allowable price increases, potentially impacting revenue growth and profitability.

Back when inflation was surging in 2022, energy companies like National Grid came under pressure from some who believed the businesses made excess profits as part of passing the higher costs onto customers. This wasn’t illegal and was within the Ofgem price control frameworks. But it certainly helped National Grid financially.

The flipside could also be true if inflation keeps falling. Without much wiggle room on price increases, National Grid could see revenue stagnate. Of course, a risk to this pessimistic view is that revenue could grow organically. If the business can enjoy a successful marketing campaign or customer acquisition push, revenue could grow that way instead.

The stock is down a modest 2% in the past year, with a dividend yield of 5.84%.

On balance, I’m staying away from National Grid right now but feel investors might want to consider Tesco stock as an inflation idea for a portfolio.

Investing in the stock market can be a great way of earning a second income. But investors need to think carefully about the best available opportunities.

Dividend stocks can be a terrific choice. But they aren’t the only way to generate income from an investment portfolio and they might not even be the best.

There’s more than one way to get cash out of a portfolio. And doing it by selling part of a stake in a company can be advantageous from a tax perspective.

Taxes

A Stocks and Shares and ISA is a great asset for investors. But it isn’t an option for everyone and for those that have to invest without one, it’s important to think about tax implications.

In the main, there are two ways investors can find themselves having to give their returns to the government. The first is dividend tax and the second is via taxes on capital gains.

One big difference between the two is the tax-free thresholds. This is much higher in the case of capital gains (£3,000) than dividends (£500), which can be significant for investors. 

Basic rate taxpayers looking to generate £2,000 from a £10,000 investment have a choice. They can either look for companies that will pay dividends or focus on capital gains (or both).

There are two disadvantages to the dividend approach – our £2,000 target is above the tax threshold and it’s hard to find that kind of yield. But neither of these applies to the capital gains strategy.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Capital gains

A £2,000 return on a £10,000 investment translates into a 20% return, which is huge. But there is one stock where I think it might be a genuine possibility. 

3i (LSE:III) is a FTSE 100 private equity firm. And the increase in the company’s book value – the difference between its assets and its liabilities – has grown at almost 20% per year. 

In other words, someone who owned 1% of the business in 2015 has been able to sell 20% of their stake each year and still have an investment with the same value. That’s important.

A £10,000 investment is enough to generate £2,000 per year. Fluctuating share prices mean this can’t be guaranteed, but I think the business has shown it has a sustainable competitive advantage.

Growth

The key to 3i’s impressive growth has been the success of its investments. And it has a unique approach that sets it apart from other private equity firms on this front. 

It’s easy for private equity firms to get stuck buying at the wrong times. Investors are typically more forthcoming when things are going well, but this usually means prices are high.

Unlike its rivals, 3i focuses on investing its own money, rather than taking in capital from clients. This allows it to be more selective about looking for opportunities at the right time. 

The risk with this is it can result in a highly concentrated portfolio, which has happened with 3i. So investors considering the stock should think about it as part of a portfolio with other assets.

When Trump was elected as US President back in November, Tesla  (NASDAQ: TSLA) stock initially soared. Investors believed that Musk, as a key supporter of Trump’s bid for a second term in the White House, and his electric car company were set fair. However, since peaking in December, the shares have crashed 43%, wiping out $700bn in market cap.

All hands call

Among claims that Musk is distracted far too much by his role in the US administration, last Friday (21 March) he broadcast an all hands meeting. Therein he advised employees to “hang on to your stock”.

There is little doubt that investors have become increasingly concerned that the charismatic leader has taken his eye off the ball when it comes to managing the day-to-day running of the company.

The latest issue to beset the EV maker is with its Cybertrucks fleet. In a major embarrassment, Tesla has been forced to recall virtually every one — stainless steel panels are prone to fall off when driven at speed.

I am sure that owners were less than impressed to hear that the wrong type of glue had been used to hold the panels in place. Particularly as they cost as much as $100,000 each. In total, there have been eight recalls for the Cybertruck over safety fears in the last 15 months.

Increasing competition

One of the biggest headaches the company faces is increasing competition. Chinese EV maker BYD‘s share price soared recently following an announcement that its latest batteries could be charged in five minutes. If EV charging could be as quick as filling up at the petrol station, then that’s a really big deal.

But competition is coming from all different angles these days. More traditional car manufacturers are also muscling in. In France, Renault is ready to launch a new brand of ultra-cheap EVs. The Twingo will hit the market for under €20,000.

Beyond EVs

Tesla is a lot more than just EVs. It has long been in the energy storage business. But its biggest bet is in robotics. The all-hands call provided Musk with an opportunity to provide a glimpse into this futuristic technology.

There is little doubt that the company has a competitive advantage when it comes to building out a new generation of robots. Its expertise in electric motors, batteries, power electronics, and structural design will be crucial in the application of real world AI applications.

After years of research, Optimus is now in production. The robot has a 22 degree of freedom hand and forearm and is learning to walk and catch balls.

Musk predicts that Optimus will be the biggest product of all time – “10 times bigger than the next biggest product ever made”. Whether his fleet of robots will ever match the popularity of the ubiquitous iPhone, only time will tell.

I know one thing, Musk has a long history of failing to deliver on promises. Look at his promise on fully autonomous driving cars.

My fear is that the shine has well and truly worn off this once innovative company. I think that many private investors are starting to look beyond the hype now. I certainly won’t be investing.

The FTSE 250 is a popular hunting ground for investors seeking growth shares. Its composition of mid-cap shares provides (in theory) more scope for significant earnings growth than the FTSE 100‘s blue chips, and therefore the potential for superior capital gains.

What unfairly gets less attention is the index’s ability to provide a decent passive income. To illustrate the point, the FTSE 250’s forward dividend yield of 3.5% matches that on offer from the Footsie.

Today I’m looking for the best ‘all rounders’ for UK share investors to consider buying today. Here are two from the FTSE 250 I think are attractive growth and dividend stocks, and especially so at current prices.

Warehouse REIT

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.

Real estate investment trusts (REITs) like Warehouse REIT (LSE:WHR) typically don’t have the potential to deliver stratospheric dividend growth. But they compensate for this by providing a reliable stream of passive income regardless of economic conditions.

This is thanks in large part to REIT dividend rules. Each year, at least 90% of annual rental profits must be distributed by way of dividends.

However, this alone isn’t enough to guarantee steady dividends, given their relationship to profits delivery. Yet earnings at companies such as this are usually immune to volatility thanks to the long contracts that tenants are tied down with.

In the case of Warehouse REIT, the weighted average unexpired lease term (WAULT) as of September was 4.7 years.

City analysts expect annual dividends to be locked for this financial year (to March 2025) and next year. However, investors can still enjoy a tasty 6.2% dividend yield.

I expect rising demand for logistics properties to underpin strong long-term dividends here. I think it’s worth considering despite interest rate risks to its profits (e.g., the potential for higher borrowing costs and reduced asset values).

Indeed, City analysts expect earnings to rise 23% in financial 2025 and 7% in financial 2026. With a forward price-to-earnings-to-growth (PEG) ratio of 0.8 for this year, that represents decent value for money.

Any reading below one suggests that a share is undervalued.

Bakkavor

Bakkavor (LSE:BAKK) is another FTSE 250 share offering an attractive blend of growth, dividends, and value.

Forecasters think earnings here will leap 26% year on year in 2025. This leaves it dealing on a forward PEG multiple of 0.6. Meanwhile, expectations of another dividend increase leaves the dividend yield at a meaty 4.9%.

Bakkavor makes freshly prepared food like bread, salads, pizzas, and desserts. This has two distinct advantages for investors.

Firstly, food industry earnings tend to remain stable regardless of economic conditions. We all need to eat, don’t we?

Secondly, the company is tapping into a fast-growing segment: people are becoming more inclined to healthier, fresher meals, but an increasingly large number of us don’t have the time to prepare them. Bakkavor solves this problem.

With operations across the UK, US, and China, Bakkavor provides exposure to rock-solid markets alongside fast-growing ones. Bear in mind, though, that its geographic footprint leaves it vulnerable to foreign currency risk.

Bakkavor has also been experiencing earnings issues in Asia recently, though the success of recent restructuring initiatives is an encouraging omen.