2 stocks that Look Good to me for 2020

Housebuilding

house builder Barratt Developments ticker BDEV keeps raising its dividend each year. But with a low interest rate environment and consistent demand for new properties, there’s not much sign of a slowdown in the market.

Chief executive David Thomas said in an update in October that the firm started the new trading year well and there was a “healthy” order book in the autumn. He acknowledged the presence of economic uncertainty but reckons the financial strength of the balance sheet will see the company through any short-term bumps if they arrive. Meanwhile, the outlook is positive for the foreseeable future. With the threat of nationalization now gone after the defeat of Labour by the conservatives. This company could do rather well in 2020.

With the share price near 670p, the forward-looking earnings multiple is just over 9 for the trading year to June 2021. The dividend yield is almost 7%, and looks to me very tempting.

Packaging and paper

Mondi ticker MNDI said  in an update that demand for its paper and packaging products had been a little softer in the third quarter than it had been. However, with a focus on efficient production and cost control, the directors don’t seem to be too worried. They said the firm’s “robust” business model and the “high-quality, cost-advantaged” asset base makes them confident about the outlook. It seems to me the firm operates in an attractive sector for today’s world.

With the share price near 1,643p, the forward-looking earnings multiple for 2020 is close to 12 and the anticipated dividend yield is about 4%. The firm has been a consistent performer delivering steady and balanced growth in revenues, earnings, cash flow and dividends for a long time, i have bought some shares and locked in an income stream from this little gem of a company.

Disclaimer: Any information on this channel is not to be taken as financial advice. The opinions expressed on this channel are not necessarily the opinions of the host. i am not a financial adviser and if you are seeking financial advice. please consult a professional. also any research done by myself or others used in or on this channel may or may not be accurate. this also extends to the opinions of the host and any guests. all material on and in this channel is for education and entertainment purposes only and i can not confirm or deny any of this.
all media and information used on this channel are claimed under fair usage