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It is said that summer can be a quiet time for the stock market. But it wasn't like that FTSE stocks over the past few weeks.
But with all the recent volatility comes great opportunities for investors like me who buy stocks with the intention of holding them for the long term.
Hopefully I will have some money to invest this month. I plan to pick up both stocks.
IM&G
The first one is IM&G (LSE: MNG). Its share price performance has been disappointing. It's down 9.2% year to date and 8% over the past six months. But now at 203.6p, I'm looking FTSE 100 constructive.
I'd be lying if I said I wasn't very impressed by its 9.7% yield. The business went public in 2019. Since then, it has increased its payout every year.
Assignments are never guaranteed, of course. However, M&G's said earlier that it had plans to keep up the trend of raising its dividend. That's exciting.
There are other reasons I like the look of its shares as well. For example, they have an attractive price. The stock trades at 16.4 times earnings. That seems like a decent price. However, it trades at just 8.5 times earnings. That looks dirt cheap.
I have tried to make investing as easy as possible in recent years. I have managed well-known companies operating in large industries with large clients. IM&G, with over 5 million clients in the financial services industry, ticks all those boxes.
There are a few dangers that I see. The first is the current economic situation. High interest rates are a major threat and inflation continues. Both weaken investor sentiment. This can lead to customers withdrawing money. There is also the risk of competition.
But M&G has a strong position in the market. And for a long-term buy, I like the look of the stock today.
Taylor Wimpey
Home builder Taylor Wimpey (LSE: TW.) is on my buy list. Shares have soared in the past year, up 34.7%, including 8.8% this year.
But I think we have more to offer. The property market has been struggling for the past few years but we are starting to see some positive signs coming out of it. In its half-yearly review, the company raised its guidance for full-year housing.
That doesn't mean it won't face challenges in the coming months. While the Bank of England cut the base rate earlier this month, rates remained high. We expect further cuts in the coming months but a delay could have a negative impact on Taylor Wimpey's share price.
That said, there is a lot to suggest that the business could be successful in the coming years. It's no secret that there is a housing shortage in the UK and the Labor government is determined to fix it. That is why in the next five years it committed to build 1.5m new houses.
Along with that, the stock looks well-valued, trading at 13 times forward earnings. There's also its 6.1% yield to consider.
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