I’m on the hunt for high-quality value stocks that I can buy this month and hold for the decades ahead.
Multiple forces have combined to dampen investor confidence and drag down markets in the past few years. And while some might say it’s natural to avoid investing any hard-earned cash in the stock market in times like these, I’m on the opposing side to this opinion.
Indeed, I see now as a great buying opportunity. Here are two value stocks I’m contemplating buying!
Banking giant
I’m tracking banking giant Barclays (LSE: BARC). A poor performance as of late has meant the stock is on my watchlist. And while I already own some shares, I’m tempted to buy more.
Barclays isn’t an anomaly with its subpar record in the past year or so. It’s been a tough time for the financial sector and banking stocks. Inflation and the aggressive rate hiking cycles that have followed suit have seen large volatility in the sector. Naturally, investors are cautious.
However, at its current price of 156p, I see a lot to like about Barclays stock.
To start, it currently trades on a price-to-earnings (P/E) ratio of just 4.5. This sits comfortably below the ‘value’ benchmark of 10 as well as the average of its FTSE 100 peers.
What’s more, I’m always seeking investments that can provide me with a steady passive income. And with a dividend yield of around 5%, Barclays ticks that box. Its half-year results also revealed the firm has a new share buyback scheme in the pipeline.
Barclays’ US operations have been shaky in recent times, and more issues across the pond could have a detrimental impact on the share price. However, with its global presence and diversification, I think the bank is in a strong position.
I’m expecting more volatility in the months ahead as inflation continues its rampage. This may play out in the second half of the year. However, I’m happy to ride the wave and see Barclays as a solid potential long-term investment.
Storage behemoth
I’ve also been paying close attention to Safestore (LSE: SAFE). With it being the largest self-storage unit provider in the UK, the business is putting emphasis on expansion. I think now could be a chance to capitalise on a cheap share price.
The stock currently trades on a P/E ratio of six. And even with the cost-of-living crisis, the firm has posted consistent revenue growth in the last few years as people seek extra storage to tuck away their excess goods.
By the looks of things, European expansion is next on the agenda for the business as it moves forward. This was most recently seen with a new joint venture in Germany.
On top of this, Safestore also provides a yield of nearly 4%. In the last decade, its dividend has increased an impressive 400%.
Debt on its books could hamper the business should interest rates continue to rise. With hiked rates impacting the price of real estate, this has further impacted the firm.
However, at its current price, I think it’s potentially a steal.
The move
I’m keen on both of these stocks and, as long-term buys, view them as solid choices. If I have any spare cash come the end of this month, I’ll strongly contemplate buying both.
