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Looking for the best cheap shares to buy this month? Here are three from the FTSE 250 I think deserve serious consideration.
OSB Group
Shares that specialise in money lending like OSB Group (LSE:OSB) are risky at the best of times. Given chronic low growth in the UK economy, investing in this area is especially uncertain today.
But I think the excellent value offered by this niche lender makes it worth serious attention. It trades on a forward price-to-earnings (P/E) ratio of 7.5 times. And its dividend yield is 6.6%, around double the FTSE 250 average.
OSB provides mortgages in specialist areas. In the residential sector, it writes loans to buy-to-let landlords and the self-employed, for instance. It also provides lending services on commercial properties, and frequently tacles complex, non-standard cases that high street lenders typically avoid.
Its operations are rightly considered high-risk compared to the broader mortgages industry. However, disciplined underwriting means OSB manages this greater danger with aplomb — total arrears were just 1.7% as of March.
Allianz Technology Trust
Technology stocks like Nvidia, Microsoft, Apple and Meta have further substantial growth potential as the next phase of the digital revolution kicks off. Trends like artificial intelligence (AI), cloud computing, robotics and autonomous vehicles all provide tailwinds for such stocks.
Betting on a specific winner is fraught with danger, however. Today’s tech pioneer might be left by the wayside just a few years from now. This isn’t a risk I myself like to take.
For investors like me, a diversified vehicle like the Allianz Technology Trust (LSE:ATT) is an attractive way to consider getting exposure. With 46 holdings in total, and most of the trust (74%) tied up in industry leaders and innovators with market caps above $100m, it provides industry clout while simultaneously diversifying exposure to reduce risk.
Its record speaks for itself — since 2020, it’s delivered an average annual return of 13.5%. Yet today, it trades at an 8.9% discount to its net asset value (NAV) per share. This represents at attractive entry point to consider.
It could underperform if trade tariffs hit global growth. But over the long term I’m confident about the returns it might deliver.
TBC Bank Group
When it comes to banking shares, UK investors tend to favour the traditional FTSE 100 stocks like Lloyds, Barclays and HSBC. This is a huge shame in my opinion given the excellent investment opportunities elsewhere.
Take TBC Bank Group (LSE:TBCG) for example. It’s the number one player in the rapidly expanding Georgian banking sector. And as a result, City analysts think earnings will rise 15% in 2025, keeping its long track record of strong growth going.
Bright profit forecasts mean the FTSE 250 bank trades on a forward P/E ratio of 6.6 times. Dividends are tipped to keep increasing as profits swell, resulting in a 5.2% dividend yield.
Like any banking stock, growth might be derailed by an economic downturn or falling interest rates that trim margins. But TBC’s focus on hot emerging markets still means I’m still optimistic it can keep delivering powerful long-term returns.
