This 6%+ dividend yield has slumped 25% today! Is it a now a top ‘dip buy’ for your ISA?

first_imgSimply click below to discover how you can take advantage of this. This 6%+ dividend yield has slumped 25% today! Is it a now a top ‘dip buy’ for your ISA? 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. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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Royston Wild | Thursday, 16th January, 2020 | More on: BWNG In tough economic conditions like these, not even the niche retailers can avoid the washout being felt across the retailer sector.N Brown Group (LSE: BWNG), a specialist in the plus-size and older age group clothing segments, owns Jacamo and Simply Be and is a perfect example of this. The small-cap put out a string of disappointing updates in 2019, the latest of which in October saw reporting a 5.4% revenues slip in the six months to September.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…I was quite surprised to see an 80% share price explosion over the course of 2019 and was fearful that a buying bubble was being created. My concerns came to pass on Thursday following a shocking update that sent the retailer’s share price plummeting 25%. And I worry that this could be the start of a long-term downtrend.A world of painN Brown’s share price has come crashing down after its decision to slash this year’s profit guidance and warn of prolonged problems for the bottom line too.Pre-tax profit of between £70m and £72m for the fiscal year to March 2020 is now expected. This is short of consensus estimates of between £78m and £84.1m, caused by “lower financial services revenue and a highly promotional market,” apparently, as well as a lower-than-expected benefit from its IFRS9 non-cash provision estimate.  This would represent a marked slump from the adjusted pre-tax profit of £83.6m in fiscal 2019, and perhaps shouldn’t come as a surprise given the sustained pressure on the top line. N Brown saw product sales drop 4% in the 18 weeks to January 4, it said, while revenues from its credit services division dropped 4.6% year on year, a reflection of reduced product revenues and recent changes to its lending criteria.But the bad news does not end here. N Brown advised that due to a “reduced scope for bad debt provision improvements, combined with industry-wide regulatory changes,” that adjusted pre-tax profit for fiscal 2021 would likely come in at similar levels to the current year.Worse to come?N Brown has thrown the kitchen sink at changing from a store and mail-order retailer into an online leviathan, and the firm now generates more than four-fifths of product revenue from the internet. But in an environment of dire consumer confidence and intense competition in the clothing market, these efforts have counted for little.The size of the downgrade that N Brown made to its margin estimates today illustrates the mountain that it has to climb just to stay alive. Product gross margin is now anticipated to fall between 125 basis points and 175 basis points this year versus the fall of between 50 points and 150 points it had previously tipped. And it’s likely that it will remain locked in a programme of extreme price-slashing for the foreseeable future as Brexit uncertainties persist, a problem that could throw those insipid profits forecasts for next year off course too.So forget about N Brown’s big 6.7% forward dividend yield, I say, as well as its tiny forward P/E ratio of below 5 times. This is a share I won’t be touching with a bargepole. Enter Your Email Address See all posts by Royston Wild 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.last_img read more