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Loads of the UK’s hottest shares are within the FTSE 100, however I believe buyers who overlook the FTSE 250 might be lacking out on some potential earnings. And with the brand new monetary 12 months right here in a few weeks, I’ve been wanting once more for some candidates.
Able to rebound?
Why is the ITV (LSE: ITV) share price struggling a lot? It’s straightforward to level to declining TV advert revenues, however that’s solely part of it. The true uncertainty comes from the altering face of digital televisual leisure. There’s intense compeition delivered by way of a multitiude of routes. And that, absolutely, can solely proceed.
The protection moat {that a} small variety of large TV operators used to get pleasure from has dried up and was stuffed in way back. Nonetheless, buyers appear to be beginning to take discover of ITV once more. The share price has been recovering in 2025, boosted by full-year outcomes on 6 March.
Money cow
Regardless of the TV panorama upheaval, ITV’s nonetheless fairly properly worthwhile. CEO Carolyn McCall spoke of report earnings from ITV Studios. She added: “ITVX has been the UK’s fastest growing streaming platform over the last two years.” And promoting has truly been going fairly nicely.
Her replace stated: “The board remains committed to paying a full year ordinary dividend of at least 5.0p in 2025, which it expects to grow over the medium term.” And that retains the yield over 6%.
ITV clearly nonetheless faces an uncertain future, and that dividend can’t be assured. However I think buyers may need referred to as the demise of ITV too quickly. It absolutely needs to be value contemplating for the brand new Shares and Shares ISA 12 months.
Downtrodden retailer
The B&M European Worth Retail (LSE: BME) share price has been by way of an odd 5 years. And it’s in a downward spiral once more, dropping almost 50% up to now 12 months.
However I see one other tempting dividend right here, with a forecast yield of 5.5%. The low cost retailer, greatest recognized within the UK for its B&M and Heron Meals chains, has a forecast price-to-earnings (P/E) ratio of solely eight. That’s with earnings anticipated to develop over the following three years too.
In January, B&M lowered its full-year EBITDA steerage and that nudged the shares additional down. However the change is comparatively minor, with the earlier vary of £620m-£660m narrowed to £620m-£650m.
Revenue from low costs
We mustn’t overlook that it is a cut-price retailer. And one factor meaning is that it’s not among the many biggest-margin sectors within the FTSE 250. It additionally suggests it may not be one of the best type of enterprise to climate the continued financial storms.
Nonetheless, at Q3 time, CEO Alex Russo described the enterprise as “undistracted by the present financial headlines“, and spoke of anticipated “constructive quantity progress throughout our ranges“. Oh, and the board introduced a particular dividend of 15p per share.
Once more, it is a enterprise going by way of difficult occasions. However once more, I believe it might be a mistake to not take into account it.