Forget risky shares like SXX! I’d buy this 4.3%-yielding value and growth stock

first_imgForget risky shares like SXX! I’d buy this 4.3%-yielding value and growth stock Simply click below to discover how you can take advantage of this. Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Kevin Godbold has no position in any share 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 would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Sharescenter_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Kevin Godbold | Wednesday, 15th January, 2020 | More on: TEG “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Long-suffering shareholders in Sirius Mineral look like they will be saved from a total loss of their investments by the takeover offer on the table from Anglo American. But I think the whole sorry saga is a stark reminder of the risks we take on when flirting with high-risk/potential-high-reward shares.Generally, such beasts have a great ‘story’ but nothing much to show in terms of revenue and profits now. Classic ‘jam tomorrow’ propositions, if you will. But I think there’s a better way to aim for riches from shares – ‘jam today’ companies with revenue, earnings and cash flow growth now, such as the company below.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Value and growthWhen I look at the numbers for Ten Entertainment (LSE: TEG) the value jumps off the screen at me. With the share price close to 314p, the forward-looking dividend yield for the ten-pin bowling operator is around 4.3% for 2020, with the anticipated earnings multiple at 13.5.Shareholders have already seen the stock shoot up by around 30% since last autumn, but City analysts’ estimates are robust. They expect both earnings and the dividend to increase by percentages in the mid-to-high teens next year.Meanwhile, the balance sheet looks strong with modest borrowings, and the shares have been breaking out from a long period of consolidation that started at the beginning of 2018. I think that kind of price action suggests favourable sentiment in the investing community.I’m encouraged by today’s full-year trading update, which leads with the headline, “Another year of significant profitable growth.” Like-for-like sales increased by 8% in 2019 compared to the prior year and sales from new centres came in 2.2% higher, giving an overall increase in sales of 10.2% — the eighth consecutive year of growth for TEG.The company made two acquisitions in the period and recorded the first full-year effect of four acquisitions and one closure completed during 2018. Indeed, growth has been both organic and acquisitive. Now the firm claims to be the second-largest ten-pin bowling operator in the UK market with 45 sites and around 1,100 bowling lanes.Maximising revenueOn top of that, revenue is enhanced with other entertainment offerings, such as amusement machines, table-tennis, soft play, escape rooms, laser games and pool tables, plus food and beverages. It’s an age-old strategy, I reckon, involving the squeezing of the maximum spend from every customer that crosses the threshold.The firm has been busy with its investment programme, refurbishing four sites during the year, “including one prime location that has received additional investment as a concept site format to trial new entertainment experiences.”  And in the first half of 2020, the first new-build site should open, called Manchester Printworks.Looking ahead, the company plans to develop its pipeline of site opportunities with new developments and acquisitions. The outlook is positive, trading is robust and the company is expanding. I wouldn’t touch the shares with a bargepole if I believed there was a general economic slump coming soon, but right now, I’m sorely tempted! See all posts by Kevin Godboldlast_img

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