£2,000 to invest? A 9.2%-yielding FTSE 100 stock to buy right now

Recent stock market sell-offs means plenty of top-quality FTSE 100 shares are now trading at rock-bottom prices. This gives eagle-eyed investors like me a chance to nip in and grab a few choice bargains.

Persimmon (LSE: PSN) is one dirt-cheap FTSE 100 share I’m seriously considering buying today. I’m particularly attracted by its enormous dividend yields which sit just shy of double-digits.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

More good news

Britain’s housebuilders are soaring on Tuesday following another excellent trading update from Barratt Developments (LSE: BDEV). In it the FTSE 100 firm said that private reservations have remained “strong” despite the end of the Stamp Duty holiday and fewer Help to Buy reservations.

Net private reservations were down 2.3% year-on-year between 1 July and 10 October, Barratt said. But this reflected strong pent-up demand in 2020 following Covid-19 lockdowns, as well as a rush of interest from Help to Buy buyers before changes to the purchase scheme came in last December. Comparing reservation rates with those of the same 2019 period is a better indication of trading. And net reservation rates were up an impressive 18.1% on this basis in the past couple of months.

9.2% dividend yields!

Barratt’s bright release has lifted share prices across the housebuilding sector. Yet many of these cyclical shares continue to trade on dirt-cheap earnings multiples. Take FTSE 100-quoted Persimmon. At the current price of £26.70 per share, the homebuilder trades on a forward price-to-earnings (P/E) ratio of just 10 times.

As I said earlier, I think Persimmon is particularly attractive because of its enormous dividend yields. A yield of 8.9% for 2021 makes it one of the best FTSE 100 dividend stocks to buy, in my opinion. And what’s more, the yield marches to 9.2% for 2022. Both readings smash the broader Footsie average of 3.5% to smithereens.

One of the best FTSE 100 value stocks

Persimmon has itself put out a terrific trading update of its own in recent weeks. In August it said that private sales rates in the first six months of 2021 were up 30% year-on-year. They were also up approximately 20% on the same 2019 period.

Furthermore, Persimmon reported total forward sales of £2.23bn as of June. This was up 9% from levels reported between January and June 2019. Sales at the FTSE 100 firm continue to be helped by interest rates than remain much lower than their historical average, giving a big boost to homebuyer affordability. The support of Help to Buy, and the benefit of an increasingly competitive mortgage market, are also helping to drive new-build demand in the UK.

The Bank of England could well raise interest rates to battle runaway inflation. But I don’t expect this to significantly hit Persimmon’s sales as rates will remain well below those historical norms. Instead I think the main threat to the company (and to BDEV) comes from raw materials shortages that could hit construction rates and push up costs.

Still, it’s my opinion that this danger is well reflected by the FTSE 100 firm’s low earnings multiple. I think Persimmon is one of the best value stocks for me to buy today, and particularly because of those enormous dividend yields.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild owns shares of Barratt Developments. The Motley Fool UK has no position in any of the shares mentioned. 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.

This post was originally published on Motley Fool

Financial News

Daily News on Investing, Personal Finance, Markets, and more!