Higher interest rates have helped support the Lloyds Banking Group (LSE: LLOY) share price in 2022.

They’ve helped widen the profits the bank has made on its lending activities. More support from the Bank of England’s rate setting committee can be expected, too.

But this doesn’t mean I’d buy the FTSE 100 bank today. Here are just three reasons I’m avoiding Lloyds shares today.

1. A collapsing housing market

Lloyds is a major player in the UK mortgages market. Unfortunately for the bank, this sector is critical in driving the bottom line.

Data today from Nationwide showed home sales fall for the first time in 15 months in November. Demand from homebuyers fell because of soaring interest rates to tame inflation and support the flagging pound.

They’ve risen by half a percentage point at the last two Bank of England meetings. And an even-bigger 0.75% hike is predicted at the latest meeting this Thursday. No wonder Lloyds is tipping home sales to fall 8% in 2023.

2. Broad-based weakness

Surging interest rates threaten to crush demand for mortgage products in the short-to-medium term. There’s also a danger of missed home loan payments increasing to eye-popping levels.

This partly explains why Lloyds set aside another £668m for bad loans provisions in the third quarter. It caused the bank to miss City profit forecasts. And more are likely to be coming down the pipe as the UK economy toils.

The problem for Lloyds, however, is that it faces weak revenues growth and a surge in loan impairments across the board. Indeed, total loans and advances clocked in at £456.3bn in the third quarter, basically flat from the prior three months.

That’s the trouble with investing in highly cyclical shares like banks. Profits can soar when the economy is thriving. They usually sink when times get tough.

3. Lack of overseas exposure

But Lloyds offers an extra layer of risk to investors. Its focus on the British retail banking sector means it doesn’t benefit from geographic diversification.

Unlike Barclays, HSBC, and Standard Chartered, for instance, it can’t look to other markets to drive earnings during tough periods at home. This is particularly troublesome today as Britain’s economy is expected to perform particularly badly over the short-to-medium term.

The IMF, for example, has forecast UK growth of just 0.2% in 2023. This is well below the 2.7% that the broader global economy is tipped to grow at.

Cheap for a reason

It’s true that Lloyds’ shares look enormously cheap on paper. It trades on a forward price-to-earnings (P/E) ratio of below 10 times. Its dividend yield meanwhile smashes the FTSE 100 average of 4%.

But I don’t consider Lloyds’ share price as a bargain. Brokers now expect earnings to drop year on year in both 2022 and 2023. And I think more forecast downgrades could be in store. This is a high-risk UK share I plan to avoid at all costs.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, Lloyds Banking Group, and Standard Chartered. 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.

I’m searching for the best UK value shares to buy this month. Here are two I’ll add to my Stocks & Shares ISA if I have spare cash to invest.

Shock price fall

The housing market is really starting to creak as interest rate rises accelerate. Today, Nationwide announced that house prices actually fell 0.9% month on month in October.

Last month’s drop was the first since the height of the Covid-19 crisis in summer 2020.

The London Stock Exchange’s listed housebuilders face significant turbulence in the short-to-medium term. And so do suppliers of key materials, like brickmaker Forterra (LSE: FORT).

Indeed, City analysts now expect this materials supplier to record zero earnings growth in 2023. This follows an anticipated 25% rise this year.

6.4% dividend yield

The near-term outlook is looking grimmer, then. But the long-term picture remains quite exciting in my opinion. And following recent share price falls I think Forterra shares look too cheap to miss.

Today, the brick manufacturer trades on a forward price-to-earnings (P/E) ratio of just 8.8 times. It also carries an enormous 6.2% dividend yield through to the end of 2023.

Investing for the future

Make no mistake: Britain faces a colossal shortage of homes. It reflects inadequate housing policy by successive governments. And when interest rates start to come down again (probably in the second half of 2023), demand for homes is likely to leap again.

This is why the government this week affirmed plans to build 300,000 new homes a year by the middle of this decade.

As a potential investor in Forterra I’m encouraged by the steps it’s taking to meet a possible demand boom, too. Refurbishment of its Wilnecote centre will increase capacity, boost its product range, and improve efficiency. Meanwhile its new Desford brick factory remains on schedule to be commissioned later this year.

Another top UK value share

Lookers (LSE: LOOK) is another top UK share offering brilliant all-round value this November.

The car retailer trades on a forward P/E ratio of 5.3 times. It also carries a decent 4% dividend yield for 2022, and an even-better 4.2% one for next year. And predicted dividends for the next two years are well covered by expected earnings.

Unfortunately, Lookers is expected to suffer some considerable discomfort in the near term. Earnings are expected to decline 27% and 19% in 2022 and 2023, respectively, due to supply chain issues and weak customer demand.

The EV revolution

However, given Lookers’ dirt-cheap valuation, allied with its recent ability to beat expectations, I think it’s a great value stock to buy. Just last month it hiked its full-year profit forecasts to at least £75m.

Besides, as a long-term investor I think it could be a great way to capitalise on soaring electric vehicle (EV) demand.

Britain is the second-largest market for non-petrol and diesel cars in Europe, according to Statista. And it thinks sales of EVs will soar at a compound annual growth rate of around 14.7% during the next five years. Lookers should be well placed to exploit this demand boom.

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Royston Wild has no position in any of the shares mentioned. 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.

Rolls-Royce’s (LSE: RR) share price has bounced back from its lows in mid-October. In fact, the FTSE 100 enginebuilder has risen by around 15% in just three weeks.

Demand for Rolls-Royce shares hasn’t risen on the back of any company- or industry-specific news. They’ve been carried higher by an improvement of broader investor confidence in recent days.

Should I join the stampede and buy the troubled blue-chip share?

Danger here

Rolls-Royce has exposure to many different engineering markets and industries. However, its fortunes are closely tied to those of the airline industry. Its civil aerospace division generates more than 40% of underlying revenues.

So a bet on Rolls-Royce shares can be seen as a bet on the travel sector. And an uncertain outlook here worries me as a potential investor. Jet sales and aircraft servicing revenues depend on strong airline profits and flight activity.

Recovery to slow?

The precariousness facing the airline sector is highlighted in a fresh report from Bain & Company. For 2022, analysts at the management consultancy have upgraded their revenues estimates for the industry. They now expect turnover to hit $525bn this year, or 84% of pre-pandemic levels.

However, Bain said that it expects a lower rate of growth over the next 18 months as discretionary spending begins to decline.

The firm said that its current growth estimates could be downgraded too, “amid mounting recession concerns in many key economies” and “turbulence with OPEC+ resulting in recent cuts to oil supplies”. It added that business travel isn’t tipped to recover fully until 2025.

Defence demand

The problem for Rolls-Royce is that it also supplies product to other cyclical industries. So as the chances of an economic downturn increase, its broader profits outlook worsens.

On the plus side, the business also generates considerable revenues from defence customers. This provides it with some welcome earnings visibility as defence budgets remains broadly unaffected by economic conditions.

In fact, its defence division enjoys huge long-term opportunities as global arms spending soars. Statista thinks defence expenditure in the US — a major user of Rolls-Royce aircraft engines — will grow strongly every year over the next decade.

The verdict

However, this isn’t enough to encourage me to invest. Even the bright long-term outlook for the airline industry will not tempt me to buy Rolls-Royce shares.

This is because of the company’s gigantic debt pile. It stood at $5.1bn as of June, and a slump in the global economy will hamper its ability to pay this down.

Consequently, Rolls could struggle to fund its growth programmes. It might also have trouble restarting its dividend programme (the engineer hasn’t paid a dividend since 2019).

Today, Rolls-Royce’s share price trades on a whopping price-to-earnings (P/E) ratio north of 270 times. This is far, far too high, in my opinion, given its high-risk profile. So I’d rather buy other UK shares right now.

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Royston Wild has no position in any of the shares mentioned. 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.

October was, broadly speaking, another month of extreme volatility for UK share prices. The FTSE 100, for instance, slumped to multi-month lows before exploding during the second half. The UK-focused FTSE 250 has followed a similar up-and-down trajectory.

As an active Stocks and Shares ISA investor, I’m hoping for more of the same in November.

Bargain hunt

Like legendary investor Warren Buffett, I like to buy shares based on value. I also, like the Berkshire Hathaway boss, look to hold onto them for the long haul. As a result, I use market volatility like we’ve seen as a chance to go bargain-hunting.

Investing in stocks is riskier than, say, putting my spare cash in something like a cash account. The near-term risks are particularly acute today given the mix of soaring inflation and central bank rate increases, and their double-whammy impact on the global economy.

But buying shares to hold for the long haul reduces the risk by ironing out temporary volatility. So even though share markets could remain choppy in November, I’m still aiming to build my Stocks & Shares ISA.

After all, I’m not going to make any money by sitting on the sidelines and waiting for any volatility to pass. As market analyst Sam North of eToro comments: “Remember, time in the markets beats timing the markets. And on the whole, they go up more than they go down.”

A FTSE 100 stock on my radar

This is why I’m planning to buy HSBC Holdings (LSE: HSBA) shares for my Stocks & Shares ISA next month. I think it could help me to hit (or even exceed) that average annual return of 8% that long-term investors tend to make.

The HSBC share price has continued sinking in late October. Not even the release of forecast-beating financials have arrested the slide (it recorded pre-tax profits of $3.1bn between July and September).

The market has been spooked by the $1.1bn worth of loan impairments HSBC booked in the third quarter. HSBC attributed these charges to “increased economic uncertainty, inflation, rising interest rates and the ongoing developments in mainland China’s commercial real estate sector”. And these troubles look set to persist heading into 2023.

8.8% dividend yield

However, it’s my opinion that HSBC’s share price today reflects these worries. For 2022, it trades on a price-to-earnings (P/E) ratio of 6.5 times. And the multiple slides to an even lower 5.3 times for next year.

I expect the company’s shares to rebound strongly over the long term. Financial product penetration in the bank’s core Asian markets has soared in recent years yet remains low. And personal wealth levels are tipped to continue growing strongly in coming decades, likely driving banking services demand still higher.

HSBC is investing billions over the next five years in areas like wealth management to make the most of this opportunity too. What’s more, further asset sales outside Asia could be coming to boost its growth programme on the continent.

I think now’s a great time to pick HSBC up on the cheap. And the bank’s huge dividend yields of 5.8% and 8.8% for 2022 and 2023 add a considerable bonus.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended HSBC Holdings. 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.

The Taylor Wimpey (LSE: TW) share price has sunk 45% in 2022. Based on its dividend forecast for this year, its shares now carry a 9.4% dividend yield.

This is more than double than the FTSE 100 forward average of 4%. And things get even better for 2023. For then the dividend yield marches to 9.9%.

I already own Taylor Wimpey shares in my portfolio. Should I buy more on the back of its exceptional dividend estimates?

Dividend growth

Like many UK shares, Taylor Wimpey axed shareholder payouts for 2019 following the onset of Covid-19. However, strong housing market conditions enabled it to restart its dividend policy straight away.

In 2020, the business paid a full-year dividend of 4.14p per share. And last year it supercharged the payout to 8.28p.

City analysts expect the yearly shareholder reward to keep rising too. Payouts of 9.1p and 9.52p per share are predicted for 2022 and 2023 respectively.

Based on dividend cover I think there’s a good chance of Taylor Wimpey meeting these forecasts as well. Anticipated payouts are covered 2.1 times by predicted earnings this year. However, coverage weakens to 1.8 times for 2023.

A reading of two and above gives a decent margin of safety for investors.

Growing risks

That being said, I wouldn’t bet the house (so to speak) on Taylor Wimpey meeting dividend forecasts for next year.

Home prices rose 9.5% on an annual basis last month, according to Nationwide. But signs of turbulence are creeping into the market. Average house values actually flatlined month on month in September, at £272,259.

On the one hand, a shortage of available homes could keep prices moving higher. But then the number of mortgage deals being pulled from the market is accelerating.

There’s also the potential for colossal interest rate hikes as inflation soars and political uncertainty persists. Economists currently expect the Bank of England benchmark to surge above 5% in 2023, more than double current levels of 2.25%.

The verdict

I think the long-term outlook for the UK housebuilding sector remains bright. Home ownership is a vote winner and so government support like the Deposit Unlock scheme should remain in place.

Fierce competition among mortgage lenders is also helping first-time buyers get their foot on the ladder. Then there’s the simple fact that Britain’s population is growing and demand for accommodation is increasing.

Meanwhile, plans to boost homebuilding to meet demand remain wholly inadequate. It’s a problem that goes back decades. And the government’s recent decision to ditch construction targets doesn’t help.

However, growing uncertainty in the short-to-medium term is discouraging me from buying more Taylor Wimpey shares.

The business aims to pay at least £250m worth of dividends each year. But a possible housing crash could put paid to these plans. Economist Simon French of Panmure Gordon, for example, has tipped a 14% fall in home prices over the next three years.

Until the housing market outlook improves I won’t be adding more Taylor Wimpey shares to my portfolio.

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Royston Wild has positions in Taylor Wimpey. 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.

I’m searching for the best high-dividend stocks to buy next month. Should I load up on these FTSE 100 income shares?

BP

I have huge reservations over buying oil producers like BP (LSE: BP). The world is transitioning rapidly from fossil fuels to renewables and alternative energies. The world’s majors have a long way to go as part of this transition to replace their oil and gas revenues.

But then the company could potentially deliver explosive profits growth in the short-to-medium term, as Shell’s third-quarter update shows. Adjusted earnings doubled year on year to $9.5bn thanks to higher crude prices.

As a result, Shell announced plans for a $4bn share buyback programme. It also hiked the quarter three dividend to 25 US cents per share.

The trouble for BP and Shell, however, is that this outstanding profits growth has amplified calls for a windfall tax. This could end up costing the FTSE 100 firms billions of pounds. The UK government has said that all options remain on the table as it aims to rebuild public finances.

Furthermore, it’s not certain that crude oil prices will remain close to $100 a barrel. The OPEC+ group’s decision to cut production has helped black gold values remain at current elevated levels. But the cooling global economy means that a slump in oil demand might not be far away.

BP’s slight forward price-to-earnings (P/E) ratio reflects this uncertain outlook. For 2022 it carries a multiple of just 3.9 times.

So I’m happy to ignore the oil stock and its 4.3% dividend yield for now.

The Berkeley Group

Like BP, The Berkeley Group (LSE: BKG) has a dividend yield that beats the 4% FTSE 100 average.

At 4.5% the company’s reading is a clear distance above the British blue chip average. On top of this, the housebuilder trades on a forward P/E ratio of just 8.7 times. It thus provides great all-round value on paper.

The housing sector outlook over the long term remains robust in my opinion. However, uncertainty over Berkeley’s profitability (and thus dividend prospects) in the more immediate future means I’m not investing for the time being.

Promisingly for Berkeley, demand for city homes is increased as people flock back following Covid-19 lockdowns. According to Halifax, average home values in UK cities rose 9.2% between January and September.

This is good news for Berkeley which is focused on London and the South East. The problem, however, is that a broad slump in home values is possible as interest rates soar and the domestic economy struggles.

At the same time costs for the homebuilders looks set to keep growing. Shortages of raw materials and increasing wages are all adding pressure to these companies’ bottom lines.

I already own a raft of FTSE 100 housebuilders in my own portfolio. But until the demand outlook becomes clearer I’ll be looking to buy other UK shares to boost my dividend income.

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Royston Wild has no position in any of the shares mentioned. 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.

I already own shares in housebuilders Persimmon, Barratt Developments and Taylor Wimpey. But, collectively, these dividend shares account for a small percentage of my entire portfolio.

I’m considering building my exposure by investing in Vistry Group (LSE: VTY). I’m attracted by its low forward P/E ratio of 4.2 times and its 11.7% corresponding dividend yield.

Vistry’s share price has collapsed during 2022. The threat of rocketing interest rates has hung over the housebuilders for the past year. The danger has increased following the market mayhem that accompanied September’s mini-budget too.

Signs are growing that homebuyer demand is cooling as a result. And this threatens to get worse as mortgage providers pull products (and especially those that require only small deposits).

Latest data from the Royal Institution of Chartered Surveyors showed new-buyer enquiries fell for a fifth straight month in October. Chillingly, the body commented that “price expectations are now slightly negative” for the next 12 months.

Bad news

As an investor in Britain’s housebuilders, all of this news is pretty worrying. But I haven’t been tempted to sell my holdings yet. This is because I buy shares with a view to holding them for the long haul, say a decade or more.

I do need to consider however, how the deteriorating trading environment will hit housebuilder dividends in the near term. Their above-average yields are the chief reason I bought Persimmon and those other FTSE 100 shares to begin with.

As a potential investor, I’m pretty confident that Vistry will continue paying above-average dividends, even as profit risks rise. City analysts think the FTSE 250 company will pay a full-year dividend of 69.6p per share in 2022. This is covered twice over by anticipated earnings, giving a decent margin of safety in case profits forecasts disappoint.

Yet even if the full-year dividend falls short of estimates it’s likely to still be much better than most other UK shares. Vistry’s 11.7% forward yield is, after all, well above the 3.3% FTSE 250 average.

Good news

The outlook for Vistry and its peers is more perilous than it was a year ago. Yet there are also reasons for me, as an investor, to be bullish.

Weak housebuilding rates have created a huge supply shortage in Britain. This should at least stop property prices falling off a cliff. At the same time, government schemes like the low-deposit, Deposit Unlock, and recent Stamp Duty changes will support demand from new buyers.

Major lender Barclays certainly remains upbeat about the housing market. Last week, it said that “higher interest rates are expected to adversely impact the housing markets in major economies”. However, it added that “house price growth remains positive over the forecast horizon [to 2026]”.

The verdict

I think the outlook for Vistry remains ultra-bright. And its planned merger with Countryside Properties could supercharge its profitmaking ability in the years ahead.

That said, I’ll wait until the medium-term outlook for housebuyer demand becomes clearer before buying the builder. I will add it to my shopping list with a view to snapping it up later on.

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Royston Wild has positions in Barratt Developments, Persimmon, and Taylor Wimpey. The Motley Fool UK has recommended Barclays. 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.

The Tesla (NASDAQ:TSLA) share price has slumped 44% in 2022. However, a revival in buying interest among some UK share investors has emerged more recently.

According to Hargreaves Lansdown, Tesla shares were the most frequently bought on its platform last week. The electric vehicle (EV) maker accounted for 2.48% of all buy orders made through the investment firm.

Should I also join the stampede?

Great value for money?

Tech stocks like Tesla tend to carry high price-to-earnings (P/E) ratios. Shares in this category tend to have the potential for rapid earnings growth. So investors are prepared to pay a premium for this.

Elon Musk’s revolutionary business is no different in this respect. At $224.64 per share it trades on a forward P/E ratio of 55 times.

But this isn’t the end of the story. Dig a little deeper and Tesla’s share price could actually be considered excellent value. City analysts think earnings will soar 119% year on year in 2022. This creates a price-to-earnings growth (PEG) ratio of 0.5 times (a reading below 1 indicates a stock is undervalued by the market).

3 problems at Tesla

So why might Tesla shares be trading so cheaply today? One reason is supply chain issues that are affecting its ability to meet orders.

The automaker delivered 343,830 units during the third quarter. That was more than 15,000 short of its reported target.

Musk explained that “it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost.” Chip shortages are another ongoing problem for the firm, one which has prevented it launching any new models in 2022.

Recurrent vehicle recalls are another issue plaguing Tesla. Last month it announced the recall of 1.1m more vehicles due to a window malfunction.

And finally, investors are concerned that demand for its big-ticket items like EVs could sink as the global economy cools.

Why I’m thinking of investing

Tesla clearly faces its share of problems today. However, I still believe the company’s investment case is very attractive. Musk certainly remains bullish over the company’s long-term prospects. In recent weeks he’s predicted that Tesla could “be worth more than Apple and Saudi Aramco combined.”

It’s a pretty outrageous claim. Today, the consumer electronics giant and oil producer have a combined market-cap of $4.5trn. Tesla’s, meanwhile, sits all the way back at around $700bn.

But this doesn’t mean the business doesn’t have colossal investment potential. Even as its third-quarter financials missed forecasts, there were still bright spots to celebrate.

Revenues and earnings are still rising rapidly (up 56% and 55% respectively in Q3). And each of its US, Chinese and German factories delivered record production in the period.

The verdict

Like billionaire investor Warren Buffett, I appreciate companies that offers market-leading products with significant brand power. And Tesla has it in spades, putting it in pole position to exploit the EV boom.

This is why the company continues to steadily build its market share in each of its major regions. Demand is rising strongly, and Tesla is making impressive progress on the production front to meet future orders too.

As a long-term investor, I intend to buy Tesla shares for my own portfolio soon.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple and Hargreaves Lansdown. 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.

Worries that advertising revenues might sink has smacked ITV’s (LSE: ITV) share price in 2022. By its very definition the FTSE 250 commercial broadcaster is reliant on strong ad sales to drive profits.

It’s a risk that I as an investor need to take seriously. Though recent trading news from advertising agency WPP today has gone some way to soothing my fears.

The FTSE 100 firm said that sales growth continued to accelerate from pre-pandemic levels between July and September. And encouragingly for ITV, the ad agency said UK like-for-like sales improved 4.2% year on year.

Hub talk

The question is whether ITV’s current share price fairly reflects the danger it faces. At 68p per share the company trades on a forward price-to-earnings (P/E) ratio of 5 times.

As a long-term investor I believe the company’s valuation reflects the above risk. Its better-than-expected first-half performance (when ad revenues rose 5%) has already given me reason to believe this.

In fact I think the broadcaster will experience strong share price growth over the next decade. Its ITV Hub streaming platform, for instance, is hugely popular and the company is investing heavily here to take the fight to paid-for services like Netflix.

The number of streams through ITV Hub jumped 8% between January and June to a whopping 814m. Advertising revenues via the platform are also soaring and digital ad sales jumped 20% in the first half.

Studio strength

I’d also buy the media giant for its winning ITV Studios production arm.

The division has a stellar track record of producing global hits like Downton Abbey, Love Island and The Chase. And it has a packed pipeline of potential money-spinning hits to keep revenues rising strongly (studio sales jumped 16% between January and June).

Furthermore, I like the steps ITV has taken to turn its production arm into a truly international heavyweight. ITV Studios has production bases in the US, Australia, Israel, and across Europe.

Its drive to create a diversified programming roster across genres and geographies is helping it to build a broad global audience, too.

A top dividend stock

As the title suggests, I think ITV will be a great way to build long-term passive income. It seems likely that investors won’t have to wait long for big dividends, either.

City brokers think the business will raise last year’s 3.3p per share dividend to 5p in 2022 and 2023. This creates an 7.4% dividend yield, more than double the 3.3% FTSE 250 average.

Based on predicted earnings there’s a great chance that ITV will meet these forecasts, too. Anticipated dividends are covered between 2.1 times and 2.7 times, above the minimum safety margin of 2 times.

ITV has the potential to deliver excellent shareholder returns over the next decade. With some cash to spare I’d happily but it for my portfolio right now.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. 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.

I don’t have a bottomless pit of cash to draw upon. But Coca-Cola HBC (LSE: CCH) is a Warren Buffett-like share of which I’d like to boost my holdings in November.

Coca-Cola HBC’s share price remains vastly cheaper than it was 12 months ago. In fact, it trades at a whopping 24% discount.

The descent reflects the impact of the war in Eastern Europe on its operations. It also underlines the threat that revenues could slump as consumer spending power sinks.

I’m thinking of using this weakness as an excuse to go dip buying however. Its current forward price-to-earnings (P/E) ratio of 14.5 times sits well below its historical average.

What’s more, latest financials from US-listed The Coca-Cola Company (NYSE: KO) have reinvigorated my appetite for the stock.

Fizzy results

Coca-Cola is one of billionaire Buffett’s favourite stocks. He’s held shares in the soft drinks giant since 1988. And today, it is the third-largest holding within his Berkshire Hathaway investment firm.

Brand power is an important quality that Buffett searches for when he chooses which stocks to buy. Coca-Cola’s update on Wednesday reveals how powerful this weapon is.

Organic revenues at the Coke, Sprite and Dr Pepper manufacturer leapt 16% in the three months to September, it said. Volumes ticked 4% higher year on year. And operating profit at constant exchange rates jumped 18% year on year.

Coca-Cola has been hiking prices in response to mounting costs. But thanks to the colossal popularity of its products, sales and volumes continue to rise. Demand remains rock-solid even as inflation sits at multi-decade highs.

In fact, Coca-Cola hiked its full-year forecasts on the back of its third-quarter performance.

A Buffett-like beauty

Coca-Cola HBC’s role as bottling partner of The Coca-Cola Company gives it the same benefits of brand power. But the similarities don’t end there.

Coca-Cola HBC also has considerable strength in depth. It bottles fizzy pop along with juice, water, tea, coffee and energy drinks. It also has exposure to increasingly popular categories (such as low-calorie drinks which it serves through its Coca-Cola Zero Sugar product).

This helps protect revenues from changing consumer tastes and allows it to exploit fast-growing categories.

Like its US partner, Cola-Cola HBC has a huge geographic footprint as well. This provides protection to earnings in case of localised problems. And it gives the FTSE 100 firm exposure to developing and emerging markets in Eastern Europe and Africa.

Mark the date

Coca-Cola HBC is due to release its own financial update on 8 November. I think earnings here could also beat expectations for the third quarter, resulting in impressive share price gains of its own.

The soft drinks market is a incredibly competitive one. And this presents a huge risk to the FTSE 100 company. But Coca-Cola HBC’s brilliant track record versus its rivals provides me with reassurance.

I believe recent price weakness makes this Buffett-like stock a great buy for long-term investors.

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Royston Wild has positions in Coca-Cola HBC. 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.