The uk market has some interesting value plays right now. Ftse 100 broke 8000 recently but theres still sectors trading well below historical averages.
Been screening for uk stocks with sustainable dividends and reasonable valuations. The criteria im using are pe below 12, dividend yield above 4%, and payout ratio below 70% so theres room for growth even if earnings dip.
A few names that showed up: vodafone is controversial but the yield is attractive if you believe they can stabilize the business. Legal and general has strong cash generation from insurance and asset management. National grid is defensive with regulated returns.
Running these through valuesense to check quality metrics and most pass except for a few that have concerning debt levels. The uk banks also look cheap but i already have exposure through canadian banks so probably wont double up.
Main risk with uk equities is sterling. If youre a us investor the currency can help or hurt depending on direction. For domestic uk investors thats obviously not a factor.
Anyone else allocating to uk right now?