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I am currently looking for dividend stocks at a discount to increase my passive income stream. When in FTSE 100 index flirts with an all-time high, the FTSE 250 is anchored below the 2021 peak.
In that context, I have identified two mid-term stocks trading near levels not seen in nearly a decade. What’s more, these companies have a record of dividend increases or stability for at least 10 consecutive years.
Does the beaten down stock price of this dividend stock provide a rare opportunity to make me rich? Let’s explore.
Moneysupermarket.com
In 214p, in Moneysupermarket.com (LSE:MONY) share price in US Dollars over the past year. The current price comparison website sports a dividend yield of 5.45%.
The cost of living crisis is widely seen as a headwind for most stocks as cost-conscious consumers cut back on spending. Moneysupermarket may be a rare exception.
People are increasingly looking for the best deals on everything from home insurance and mobile phone contracts to budget-friendly holiday packages. In this climate, companies are well placed to benefit.
The results for Q3 2022 show as much. Revenue growth of 33% represents positive momentum, building on 31% and 8% in the previous two quarters. The board expects full-year EBITDA to be above market expectations.
In addition, the popularity of the company MoneySavingExpert brand is another positive aspect for me. I champion consumer finance Martin Lewis is a big asset, boost exposure media companies with regular slots ITV‘s Good morning Britain program.
The business faces risks from competition. Amazon recently announced its foray into the price comparison space, which could disrupt the market. However, Moneysupermarket has strong brand recognition and I believe the US tech giant faces a difficult task in capturing market share.
The Ashmore Group
In 266p, in The Ashmore Group (LSE:ASHM) share price is also trading close to 10 years. It has fallen by 24% compared to a decade ago. Currently, the investment manager is offering a yield of 6.33%.
These specialist investment managers offer the opportunity to increase their exposure to emerging markets. Focus on external debt, local currency, corporate debt, equity, and alternatives.
GDP growth in emerging markets has outpaced developed markets over the last decade and many analysts expect this trend to continue.
The group has faced challenges from the strong US dollar and the Russia-Ukraine war. Assets under management fell to $64 billion in 2022 from $94.4 billion in 2021.
I expect the battle to remain a whirlwind this year. On the contrary, there are signs that the dollar is starting to fall. Traditionally, this is considered a bullish factor for emerging markets.
Encouragingly, the company’s solvency ratio increased to 530% last year, up from 391% the previous year. The company’s strong balance sheet suggests the dividend looks safe to me right now.
Can this dividend stock make me rich?
Given the poor performance of stocks over the past decade, I am wary that it may not be the golden ticket to get rich.
However, with stock prices nearing 10-year lows, I think this could still be a good time to buy low-priced, high-yielding stocks.
If I had the money, I would buy two shares today.
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