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The FTSE 250 is stuffed filled with dividend shares, together with over 20 providing a return of seven% or extra. However what if one among them additionally had a present (2 March) earnings a number of of simply 10?
Would this make it a little bit of a no brainer purchase? Or may all of it be too good to be true? Let’s discover out.
The large reveal…
MONY Group (LSE:MONY) owns six manufacturers, which it claims saved shoppers £2.8bn in 2025. It earns income by transferring customers of its web sites and apps to third-party suppliers of insurance coverage, cash, residence providers, and journey merchandise.
Its most well-known manufacturers are in all probability MoneySuperMarket and MoneySavingExpert, which the group purchased from Martin Lewis (as soon as described as essentially the most trusted man in Britain) in 2012.
Because the pandemic, the group’s been steadily rising its income and earnings. Evaluating 2025 with 2021, turnover was up 40.8% and adjusted primary earnings per share (EPS) was 50.4% larger. Over the identical interval, it raised its dividend by 7.9% in money phrases.
Supply: firm web site
Though the inventory’s persistently supplied a return larger than the FTSE 250 common, a falling share value – it’s down 40% since March 2021 — has lifted its yield larger. Primarily based on its 2025 whole payout, the inventory’s presently yielding 7.4%, in comparison with 3.4% for the index as an entire.
Monetary yrShare value (pence)Adjusted primary EPS (pence)Value-to-earnings ratioDividend (pence)Yield (%)31.12.2121611.918.211.715.431.12.2219214.413.311.716.131.12.2328016.217.312.104.331.12.2419217.111.212.506.531.12.2518417.910.312.636.9Source: firm reviews
In addition to showing to be nice for passive revenue, the inventory additionally seems to be engaging from a valuation perspective. It’s now buying and selling at 9.6 occasions its 2025 EPS. That is nicely beneath its five-year excessive of over 18.
And if the analysts’ forecasts show to be correct, the group’s price-to-earnings ratio seems to be set to fall additional over the subsequent two years, to 9.1 (2026) and eight.6 (2027).
With a number of robust manufacturers, a strong enterprise proposition (who doesn’t wish to lower your expenses?), a beneficiant dividend (no ensures), and low-cost valuation, what’s to not like in regards to the MONY Group?
A quickly altering panorama
Properly, it seems to be affected by a shift in sentiment in direction of asset-heavy shares — take away intangibles from its 31 December 2025 steadiness sheet and it could have a unfavourable e book worth.
At one level in February, MONY Group’s share value fell to its lowest stage in 13 years.
Since then, the group’s sought to reassure buyers by launching its personal ChatGPT-based app.
And it’s reconfirmed that it sees AI as a manner of reducing prices and rising income moderately than as a risk. MONY Group’s boss just lately stated: “Our main knowledge and tech structure… has positioned us exceptionally nicely to harness the chance of AI“.
Now, with its wholesome dividend and traditionally engaging valuation — on steadiness — I imagine MONY Group’s one to contemplate. After all, no inventory’s an entire no-brainer however, on this case, after weighing up the professionals and cons, I feel now might be an excellent shopping for alternative.
