After a 24% fall in its share price over the past year, might RELX (LSE: REL) now be an attractive buy for my portfolio?

That is the question on my mind right now. While concerns about AI eating into its business have hammered its share price, it has gained 14% over the past couple of months.

So I have been wondering: could it be turning the corner?

This is a solid business and I don’t fear the AI impact

I have long thought RELX is a strong business.

It operates in multiple areas where customer demand is strong and alternatives are limited, such as providing vast reams of legal information to law firms. Its business model helps it make decent profits: last year, its operating margin was 32%.

But such information-rich businesses could be susceptible to AI-powered rivals.

We have seen similar fears push down the share prices of other businesses whose information trove is a competitive advantage, such as Autotrader Group (down 34% in a year) and Rightmove (now 32% cheaper than 12 months ago).

I think such fears are overdone, and it may be that the recent uptick in the RELX share price suggests that the market is also warming to that view.

Building the sort of proprietary databases RELX owns is hugely expensive. If anything, AI could actually turn out to help the company as it may lower some of its operating costs while rivals continue to lack its proprietary dataset, AI or no AI.

The price is cheaper, but not cheap

Having fallen by almost a quarter, is the RELX share price now a bargain?

I do not think so. Currently, the shares sell for 21 times earnings.

Over time, I expect revenues and earnings to grow as RELX has proven adept at building its business and adapting to a changing environment (another reason I do not fear AI’s impact on it). But I expect that growth to be modest not exponential.

This year’s interim figures illustrate this: revenue was up 3% year on year while operating profit was up 6%.

Earnings per share grew by almost a quarter, but I see that as exceptional rather than a norm.

I’m tempted, but not tempted enough

I have owned RELX shares in the past precisely because I think this is a high-quality business and, if the price is right, will be happy to buy them again.

Given that quality, I accept that the RELX share price can merit a premium. That may help explain why it was as high as it was 12 months ago.

If investors start to feel more confident that AI is not an existential threat to RELX’s business, I think the recent uptick in the share price could potentially be the start of a fuller recovery.

But I could be wrong about the impact of AI, so do not discount it as a risk altogether.

Meanwhile, RELX faces other potential challenges, such as weakening exhibition revenues. They declined 1% in the first half.

So on this occasion I will not be buying into RELX. Instead, I am looking for other great businesses with a more attractive share price right now.

Should you invest £5,000 in RELX right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if RELX made the list?

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Christopher Ruane does not hold any positions in the companies mentioned.

A SIPP is a brilliant way to build retirement wealth, as contributions are boosted by tax relief from day one. But the Stocks and Shares ISA offers something special too: freedom to withdraw your money whenever you like, with no tax to pay. So which is better?

The answer is a little annoying: it depends. So I decided to call in artificial intelligence, to see if it could work out which is better. AI is supposed to be clever, isn’t it?

ChatGPT replied that a Self-Invested Personal Pension offers the instant appeal of tax relief on contributions. “Your investments can then grow free of UK income and capital gains tax.”

Comparing tax wrappers

But there’s a catch: you can’t make withdrawals before age 55 (rising to 57 in 2028). You can then take 25% of your pot tax-free, up to a maximum £268,275. But further withdrawals may be subject to income tax.

Stocks and Shares ISA tax breaks work the other way around. There’s no upfront tax boost, but your investments grow free of income and capital gains tax, and withdrawals are entirely tax-free.

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.

Those are the nuts and bolts, but no overall AI verdict. So here’s my view. The SIPP gives you a generous tax break right at the start, the ISA at the end.

That makes a combination of the two particularly appealing. It could also help you manage your overall tax exposure in retirement nicely. Now to the next question. What should you buy for your SIPP or ISA?

Aviva offers income and growth

At The Twelfth Magpie, we favour building a balanced portfolio of FTSE 100 and FTSE 250 shares to build long-term wealth. One stock I rate is FTSE 100 insurer Aviva (LSE: AV).

Its shares are up around 75% over five years, but growth has slowed to around 12% over the last year. After such a strong performance, some kind of slowdown was likely.

But Aviva offers more than growth. It’s also paid generous dividends, yielding 6% or 7% at times. With those reinvested, the total return must be heading towards 110%. The trailing yield is around 5.4% today.

Chief executive Amanda Blanc has simplified Aviva by selling eight non-core businesses and focusing its efforts on the UK, Ireland and Canada. Operating profit jumped 25% to £2.2bn in 2025. In the first half of 2026, operating profit climbed another 24% to £1.33bn.

The shares look expensive

There’s plenty of growth potential in wealth management, general insurance and retirement products. The recent £3.7bn Direct Line acquisition adds another growth engine.

Every stock has risks. The cost of insurance claims can rise, stock markets can fall and integrating that Direct Line acquisition won’t be easy.

Today, the shares look expensive, with a trailing price-to-earnings ratio of 27. However, forward estimates put that closer to 15, reflecting expectations for much stronger earnings.

With £20,000 to invest, I thinks it’s good to spread the money across at least five shares from different sectors. Aviva would be worth considering as part of that mix. I’d buy it myself but already hold FTSE 100 insurer Legal & General Group. Sadly for me, Aviva has been the better investment.

Should you invest £5,000 in Aviva Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Aviva Plc made the list?

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Harvey Jones owns shares in Legal & General Group.

The FTSE 100 is running neck and neck with the S&P 500 as far as the returns percentage is concerned. That may surprise investors who’ve grown used to Wall Street leaving London trailing in its dust.

The US has enjoyed an enormous advantage thanks to its collection of giant technology companies. Yet investing is cyclical. Now there are signs that old-school UK banks, insurers, miners and pharmaceutical companies are getting some love.

Stock market racing demons

The FTSE 100 has one advantage over the S&P 500 – it pays more income. The typical dividend yield is around 3.3%, compared with 1.1% for the S&P 500.

The UK blue-chip index has been delivering growth too. It climbed 17.7% over the last 12 months to 10,824. With dividends included, the total return is around 21%.

The S&P 500 grew 20.2%. Including dividends the total return is 21.2%. This race could hardly be closer. I’m impatient to know how it turns out and decided to ask ChatGPT.

It’s not a crystal ball, but a chatbot. Which means it doesn’t really know, but it’s fun to ask. Its view? “Yes. I think the FTSE 100 could beat the S&P 500 over the next year, although I wouldn’t call it the more likely outcome with any confidence.”

Nice piece of fence sitting, that. It then highlighted the AI bubble threat. “If investors suddenly decide they’ve paid too much for the technology giants, the S&P 500 could take a nasty hit. The FTSE 100 might provide some ballast.“

A tale of two big cities

Don’t celebrate too soon, FTSE 100 fans. The bot said a US correction or crash would damage investor confidence everywhere. “Investors fleeing risk tend to sell everything first and ask questions later.”

Higher interest rates are another threat as the Iran war drives up energy prices. That would hit US growth stocks “particularly hard by reducing the value investors place on their future profits,” ChatGPT said.

It then cautioned: “Higher rates could also hurt FTSE 100 dividend shares. Income seekers could get better returns from cash and bonds without risking their capital.”

But overall ChatGPT is upbeat about the FTSE 100 concluding: “It’s been the unfashionable market for a long time. Sometimes that’s precisely when things get interesting.”

Glencore shares are booming

In my view, things are already interesting. I hold FTSE 100-listed Glencore (LSE: GLEN) and it’s been an extraordinary performer.

The shares have risen 102% over the last year. Yet it wasn’t always this way. Last year, Glencore’s earnings were hit by weaker energy and coal prices, with 2025 adjusted EBITDA falling 6% to $13.5bn.

Copper prices have surged on the green transition and Glencore is a major producer. In the first half of 2026, adjusted EBITDA rocketed 86% to $10.1bn. It’s also returning plenty of cash. Glencore has announced around $3.5bn of shareholder returns for 2026, including dividends and a $500m share buyback.

Commodity prices are also cyclical and can fall as quickly as they rise. A global recession would hurt demand, while mining remains a volatile business. Even so, Glencore’s copper ambitions and improving profits make the shares worth considering today. US tech still dominates the headlines, but plenty of FTSE 100 stocks excite me too.

Should you invest £5,000 in Glencore Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Glencore Plc made the list?

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Harvey Jones owns shares in Glencore.

With a price-to-book (P/B) ratio of just 0.66, IP Group (LSE:IPO) looks like one of the ‘cheapest’ stocks on the FTSE 250. It also has a low price-to-earnings (P/E) ratio of just 9.23, a level usually only seen on stocks with a tanking share price.

But that’s not the case here. The share price is actually up 26% year-to-date. That combination suggests a recovery has already kicked in, but the market’s slow to revalue it. So I had to take a look and see if this is a genuine recovery story, or just short-term hype.

What IP Group does

IP Group isn’t a conventional company but rather a platform that does venture capital and private equity investing. Its core focus is on unlisted university spin‑outs and innovative start-ups across life sciences, physics, energy, healthcare, and telecommunications.

It earns revenue through fair‑value gains, exits and fund-management fees but reports net asset value (NAV) per share as its key metric. As such, standard earnings ratios can look odd year to year.

That’s why I need to dig deeper to understand if the stock’s truly undervalued.

Valuation assessment

In 2025, the group’s NAV recovered to £975.1m from £952.5m, turning it from a £207m loss to a £66.9m profit. That’s the most likely catalyst that kicked off a price recovery in mid-2025.

The NAV per share also rose to 110.4p, around 35% higher than the current share price — which explains the low P/B ratio. That gap narrowed from around 45% in 2024, highlighting the current growth trajectory.

If that continues, it could equate to significant gains over the coming 12 months. Analyst coverage is limited but I managed to find two price targets of 110p and 119p, implying growth of between 50%-63%. 

What’s driving the recovery?

In 2024, IP Group racked up total cash proceeds from exits of £183.4m, almost five times 2023. Much of that cash came from the sale of Featurespace to Visa and Garrison Technology to Everfox. Those exits left the group with gross cash and deposits of £285.6m, declining to £211m by year‑end 2025 following investments and buybacks.

The group’s portfolio looks to be maturing nicely, particularly with investments in Oxford Nanopore and several therapeutics and clean‑energy businesses.

So what could go wrong?

A key risk is that IP Group’s returns are highly volatile and heavily dependent on fair‑value movements and exits from early‑stage science and tech businesses. That’s quite different to the steady sale income or operating profits of normal businesses.

As a result, it’s had negative operating cash flow in recent years, and not particularly strong shareholder returns. If new investment opportunities dry up, or its early-stage bets don’t pay off, the next set of results could disappoint.

Final thoughts

Due to its focus on investing in start-ups, IP Group presents more like a high-risk/high-reward penny stock than an established FTSE 250 company.

However, its exposure to specialist science and tech ventures has proven profitable in the past. For investors looking for exposure to this type of niche private equity, it offers a rare opportunity that’s worth keeping in mind.

But the risks warrant closer inspection, and I’d only consider it as a small allocation in a broadly diversified portfolio.

Should you invest £5,000 in Ip Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ip Group Plc made the list?

---

Mark Hartley does not hold any positions in the companies mentioned.

A Stocks and Shares ISA is a wonderful way to build long-term wealth. All capital gains and dividends are free from tax, allowing your money to compound year after year without HMRC taking a slice.

That makes them particularly attractive for income investors. There are plenty of top dividend stocks on the FTSE 100, but the following three can’t be beaten on yields. They’re in different sectors, so might complement each other nicely.

Legal & General Group

Life insurer and asset manager Legal & General Group (LSE: LGEN) is finally showing some life. Its shares are up 16% over the last year, although they’re just 8.7% higher over five years. The trailing dividend yield is an impressive 7.47%.

I hold L&G myself, so I’m pleased to see the recent recovery. Latest results were encouraging. Core operating earnings per share jumped 11% in the first half of 2026, while the group has started a £1.2bn share buyback. It also raised its interim dividend by 2%.

There are risks. Legal & General’s profits can be affected by investment markets, while its huge asset management operation is exposed to a potential stock market sell-off. The shares have also struggled for years, so there’s no guarantee this revival will last. But that income looks sustainable and is hard to ignore.

LondonMetric Property

LondonMetric Property (LSE: LMP) is a real estate investment trust, or REIT, focused on properties such as logistics, convenience and healthcare assets. Its shares have also disappointed. They’re down 10% over 12 months and 28% over five years. As a result, the trailing yield has climbed to 6.64%.

REITs have had a difficult few years as higher interest rates increased borrowing costs and hit property valuations.

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.

Yet LondonMetric’s net rental income rose 16.6% to £455.3m in its latest full year, while EPRA earnings climbed 13.9% to £305.3m. The dividend increased 3.8% to 12.45p and was 108% covered by earnings.

That’s encouraging, although debt costs are a worry, especially if inflation threatens to drive interest rates higher. The share price has been patchy, but the income is excellent.

Imperial Brands

Imperial Brands (LSE: IMB) is the tobacco giant behind brands including Winston, Gauloises and Davidoff. Its shares have fallen 18% over the last year, but they’re still up a thumping 65% over five years, with dividneds on top. Its trailing yield is 6.47%.

It’s still generating heaps of cash. In its latest half-year results tobacco net revenue rose 1.5%, while new-generation products grew 7.5%. Smoking volumes are falling overall, of course, and regulation remains a threat.

Whatever your personal view of Big Tobacco, it has shrugged off all the challenges to become a terrific source of dividend income and share price growth.

All three are worth considering for investors seeking high income. They’ve all been patchy, but that’s partly why the yields are so generous.

Split £20,000 equally and the average yield of 6.86% would produce a passive income around £1,372 a year. That may grow steadily over time, if investors reinvest their dividends and boards keep hiking payouts. Not convinced? I can see other tempting FTSE 100 income stocks out there today…

What income stock do we like better than Legal & General Group Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

---

Harvey Jones owns shares in Legal & General Group.

When we see a penny stock come close to six-bagging in a month, we’ve lost the chance to get in cheap, right? But what if the shares are still priced at not many pennies?

That’s the way GCM Resources (LSE: GCM) is looking right now. It’s price is just 17.7p, at the time of writing, and we’re looking at a market-cap of only £66.5m. So what’s been happening, and what might be next?

What does it do?

GCM’s big project is its Phulbari Coal and Power Project in Bangladesh. And it’s what’s behind the big August price spike. The company’s been waiting for the green light from the government for years now, and it sounds like it might be on the verge of getting it.

Bangladesh has around 8,000MW of coal-fired generating capacity, though it’s mostly fuelled by imported coal. And GCM says Phulbari could supply around 60% of domestic demand.

Then on 17 August, Bangladesh’s finance minister made an announcement. The country is finalising its energy mix plans and it’s actively considering coal and gas along with renewables — including further coal-fired power.

Coal tomorrow?

For exploratory mining companies, a move like that would be very welcome. But for many, it might signal only the start of moving its mines from exploration to producing actual deliverables.

GCN however, reports Phulbari is already development-ready, with extensive feasibility studies, environmental assessments and technical planning completed. So it’s already a significant way along the path.

But there’s a major milestone still to be achieved. GCM isn’t profitable. And it’s led debt to build to a net figure of £4.9m by the end of 2025. Looking at the firm’s debt-to-equity ratio of 15.9% though, that’s actually not too bad. I don’t see it as a major balance sheet threat.

We have no forecasts to go on at the moment. And even if we had, they’d have been thrown up in the air by this latest political development.

So what’s next?

GCM reckons it has around 472m tonnes potentially recoverable from Phulbari. That’s a lot of coal! If Bangladesh’s energy plans go in its favour, this could potentially be the start of something good that could last for years.

The problem is, nothing’s been finalised yet. And GCM’s hopes and dreams hinge on the ‘p’ word… politicians. I hate it when a company’s fortunes depend pretty much entirely on what politicians want to happen — and that’s in any country.

It’s against a background of political risk facing any UK company operating in the developing world.

Typical growth decision

If any company right now shows those classic signs of a typical penny stock risk/reward balance, it has to be GCM Resources. In my younger days, I’d almost certainly go for this one. And I think growth stock investors who don’t mind the risk should treat it as one for consideration.

And you know what? I’m actually toying with the idea of a very small investment. Perhaps alongside a hot dividend stock I have my eye on…

What income stock do we like better than Gcm Resources Plc right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

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Alan Oscroft does not hold any positions in the companies mentioned.

Space Exploration Technologies Corp (NASDAQ:SPCX) — aka SpaceX — is a company I’ve wanted in my Stocks and Shares ISA for a long time. Unfortunately for me, the rocket pioneer remained private for the first 24 years of its existence.

But that all changed on 12 June when SpaceX made history with its record-breaking IPO. Suddenly, I could buy all the shares I wanted, money and ISA allowance permitting.

However, in my experience, new listings tend to fall below their IPO price within a few months, giving me a better price to invest later on, if I’m still interested. So I normally hold off. In this case though, I’ve broken with tradition and added SpaceX to my ISA. Here are three reasons why.

A 40% pullback

SpaceX stock went public at an IPO offer price of $135, but shot up to $225 within days. Now, it’s back around $140. So one attraction is that I’ve invested near the IPO price, around 40% lower than June’s peak.

Of course, this shows how incredibly volatile the stock is — the sort that could give you whiplash if you watched it too closely!  I’m strapped in for a wild ride.

Dual monopoly

The second reason I’ve invested is that SpaceX essentially has two monopolies. Not only is it the world’s dominant launch firm, but it also has a global connectivity utility in the shape of Starlink.

The figures illustrate just how far ahead of the competition SpaceX is. Last year, it carried out 165 orbital missions, averaging a launch roughly every 2.2 days. It lofts between 80% and 90% of all payload mass to orbit every year.

Meanwhile, the Starlink internet mega-constellation recently reached 11,000 satellites. No other satellite operators come anywhere close to this.

To put SpaceX’s dominance into perspective, it has roughly seven times more satellites in orbit than the next four largest constellations combined, according to KeepTrack data from July.

Starlink, which now has more than 12.5m subscribers, is already generating very strong recurring revenue and margins. But it’s still very early days for this business, which has multiple future growth avenues available:

• Direct-to-cell (connecting to smartphones).
• In-flight connectivity (Southwest, Virgin Atlantic, Iberia, and Aer Lingus activated Starlink in Q2).
• Maritime and commercial shipping.
• Defence and government communications (Starshield).

Terrestrial AI utility potential

Finally, SpaceX has a truly unique AI opportunity. That’s because the AI revolution has run into a power supply constraint here on Earth, whereas compute infrastructure in orbit could be powered by near-continuous solar power.

FTSE 100 investment trust Scottish Mortgage, which has SpaceX as its top holding, compellingly puts the investment case like this: “SpaceX is not just building a connectivity business. It is positioning itself at the intersection of launch, energy, and AI in a way that no other company on Earth can replicate“.

Of course, a $1.9trn valuation already reflects how special the company is. If revenue doesn’t skyrocket over the next five years as Wall Street expects, then this investment might be a bitter disappointment.

To my mind, there’s also massive key person risk in the shape of CEO Elon Musk, whose vision and drive is literally irreplaceable. However, due to the rareness of this company, and its enormous competitive advantages, I’m willing to take on the risk. Investors might want to research SpaceX further.

Should you invest £5,000 in SpaceX right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if SpaceX made the list?

 

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Ben McPoland owns shares of Scottish Mortgage and SpaceX.

It’s no surprise that my preferred method of earning passive income is by investing in the stock market. I’ve found it fits well into my current lifestyle and financial situation — but that doesn’t necessarily mean it’s the ‘best’ option.

So I decided to see what the world’s favourite generative AI bot had to say on the matter. I simply asked ChatGPT: “What’s the best way to earn passive income.”

This was its response…

It depends

There’s no single ‘best’ way to earn passive income – the right approach depends on how much capital you have, how hands‑off you want to be, your risk tolerance, and your tax situation.

Fair play, that’s a pretty smart response. And it’s right: each individual needs to consider the idea of earning extra income based on their own personal situation.

However, expanding on its response, the chatbot did lean towards dividend investing. It went on to discuss how a diversified portfolio of income‑producing assets could be the “most reliable and scalable route” for UK residents. This is particularly true when you take into account the tax benefits of using a Stocks and Shares ISA or a SIPP.

Most other passive income strategies don’t offer any tax relief.

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 how can a beginner approach the idea of dividend investing without taking on too much risk?

The cautious approach

Earning income from investing in stocks is not a ‘get-rich-quick’ scheme — it requires massive amounts of patience and dedication.

But that’s not a bad thing — slow and steady growth beats quick money almost every time. Trust me, in the end, an income stream built on a stable foundation will last much longer.

So how do we build that?

An income-focused portfolio shouldn’t just be dividend shares — a foundation of highly-established defensive stocks is just as important.

Then you can add the high-yielders and a few growth stocks to keep the momentum going.

A few examples

The foundational shares that I’ve trusted for years include Lloyds, Tesco, Unilever, GSK, and National Grid. You could also opt for an actively managed fund like City of London Investment Trust, which includes 70 to 80 stocks on the FTSE 100 and FTSE 250.

When it comes to dividend shares, I screen for stocks with strong dividend coverage and a long history of payouts. British American Tobacco is a good example, along with Shell and Legal & General.

But one dividend stock that’s been increasingly catching my attention lately is Investec (LSE:INVP). With a 6% yield, it sits firmly in high-yield territory, and has the payment history to back it up.

The share price has shown promise too, climbing 115% over five years. That helped the bank secure a place in the FTSE 100 this year.

So what could go wrong? 

The bank has offices in South Africa and the UK, which adds regional diversification — but also risk.

Many investors fear the political situation in South Africa is unstable, and if the currency devalues it could hurt Investec’s profits. At the same time, it’s a key financial hub for Africa, a continent with exceptional growth potential. So it could swing either way.

Latest results show strength: revenue up 4.2%, operating profit up 3.4%, and a 9.6% increase in net core loans.

Falling interest rates could hurt profits, but for now, I think it’s a top passive income share to consider.

What income stock do we like better than Investec Group right now?

One of our Share Advisor analysts has just released a brand new stock report that we think is a must-read for any investor looking to try and generate potential income.

And the best bit is that you can see if for yourself, right now, absolutely free of charge!

No jargon. No hard sell. Just a clear look at an income share we think is worth your time.

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Mark Hartley owns shares in British American Tobacco, Lloyds, Legal & General, Tesco, Unilever, GSK, National Grid, and City of London Investment Trust.

The BP (LSE: BP) share price has had a strong run. It’s up around 20% over the last year and 70% over five. Add roughly 5% a year in dividends and the total five-year return is approaching 100%. Not bad for a stock that’s been through an extraordinary amount of turbulence.

During the pandemic (2020), BP shares crashed with the oil price. In 2022, the Ukraine war sent oil and gas prices soaring and BP stock duly followed. Then energy prices fell. So did BP.

A volatile FTSE 100 stock

The FTSE 100 oil giant had other issues. BP spent years trying to reinvent itself as a greener energy company, only to retreat under pressure from activist investors and frustrated shareholders. The company has endured a string of boardroom changes and has also been hit by punitive windfall taxes on its UK operations.

There’s been good news too. BP made a major hydrocarbon discovery at Bumerangue offshore Brazil, its largest discovery in 25 years. Then came the Iran war.

Brent crude jumped to around $118 a barrel at the end of April as the conflict disrupted supplies. It’s now retreated to $88, but that still up 47% on $60 at the start of the year. Where it goes next depends on the Middle East, and I’m not making predictions.

Consensus stock predictions

So what do the experts reckon? The 27 analysts offering one-year share price forecasts produce a consensus target of 600p. If correct, that would see BP shares climb around 16% from today’s 515p. Add the forward dividend yield of roughly 4.9% and we’re looking at a potential total return above 20%. Pretty decent, if you ask me.

The forecasts are wide-ranging though, from 454p to 770p. That last one is a rise of 50%. So could BP really hit 770p? As far as I’m concerned, it could go anywhere.

Of the 30 analysts giving stock ratings in the past three months, most are positive:

• Strong Buy: 12
• Buy: 2
• Hold: 13
• Sell: 1
• Strong Sell: 2

That’s encouraging, but the 13 Holds are a useful warning. From here, anything could happen. There could be peace in Iran, which would presumably sink oil. Or the war might spread, sending crude to the stars. I just don’t think you can select BP by second-guessing the oil price. Too many variables.

Reasons to buy this one

I think BP shares are worth considering today, but more as portfolio diversification. Even during the green transition, the world still needs oil and gas, and BP has rewarded shareholders lately.

Things could improve further if new CEO Meg O’Neill gets a grip on the business. She’s already moved quickly to restructure BP and sharpen its focus. After the summer we’ve had, some investors won’t want to touch fossil-fuel giants at all. I respect that.

For everybody else, BP’s worth considering as an investment. Just accept that this one is going to be volatile. If you’re in two minds, I can see other great FTSE 100 dividend growth stocks to consider today…

Should you invest £5,000 in Bp P.l.c. right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bp P.l.c. made the list?

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Harvey Jones owns shares in BP.

The FTSE 100 might be trading near all-time highs, but not every stock on the index has had luck. Among some of the worst hit is housebuilder Persimmon (LSE:PSN), having fallen 58.9% over the past five years.

The company has now been flagged for likely relegation to the FTSE 250 in the FTSE Russell’s upcoming September quarterly review. Currently valued at £3.87bn, it has the second-smallest market-cap on the index after Entain, another stock flagged for possible relegation.

So what’s the reason for such a collapse?

What’s behind the fall

While Persimmon’s internal operations appear sound, a mix of external factors and macro pressures have led to losses. A brutal combination of cyclical housing weakness and structural cost pressures slashed revenues, pressuring margins and impacting the share price.

Here’s three key reasons for the company’s decline:

• High mortgage rates and elevated interest rates have reduced buyers’ borrowing power, while falling house prices and softer sales have cut volumes and revenues.

• Since 2020, the cost of building a home has risen by around £76,000. Persimmon now expects costs to rise £40m-£50m, with 3%-4% build‑cost inflation throughout 2027.

• Operating profits have fallen about 50% since the 2022 peak. Investors now fear the high‑margin, high‑volume environment’s unlikely to return soon.

• The entire UK housebuilding sector has seen multiple profit warnings and downgrades, while safety regulations and requirements have added complexity and cost, further pressuring the business model.

So what does this mean for investors, and should they be worried?

A risky recovery play

For shareholders (and potential buyers), Persimmon now looks like a high‑yield, cyclical recovery play. But while it has clear income appeal, it still faces risks around margins, volumes and the wider housing market.

Cyclical risk and interest rate sensitivity remain key concerns. If rates remain high or house prices slip further, the next set of results could disappoint, potentially leading to a drawn-out price decline.

Still, the company has committed to a minimum 60p per share annual capital return (currently all as dividends), with a 20p interim already declared for 2026. That gives a yield around 6%, but with profits expected to decline over the next few years, dividend growth’s unlikely.

The valuation is understandably low, with a forward price-to-earnings (P/E) ratio around 11 and price-to-book (P/B) ratio of 1. That makes the current look cheap, but only if the housing market recovers.

Essentially, if rates fall and affordability improves, you’re looking at a high-yielding cheap stock with growth potential. The resulting total return could be significant — but when could that happen? The stock could still fall further from here.

My verdict

Despite the gloomy economic backdrop, Persimmon still has a lot going for it. It benefits from a strong land bank, vertical integration and resilient enough profits to outperform peers in the right environment.

If it can survive this lull until the housing market recovers, it’ll probably bounce back stronger than ever. The question is whether you’re prepared to lock up capital until that happens.

In my opinion, I don’t see any big changes in the immediate future. Based on the income and recovery potential, it still deserves a closer look — but it might be sensible to see how the next few months unfold before making a decision.

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Mark Hartley does not hold any positions in the companies mentioned.