Best investments for 2020: 5 UK shares I’d buy right now
The Motley Fool
Published Oct 15, 2020 11:27
Updated Oct 15, 2020 11:40
Best investments for 2020: 5 UK shares I’d buy right now
Many investors might be hesitant about buying UK shares at the moment. Indeed, the outlook for many London-listed companies is currently highly uncertain. However, the best investments are often those other investors are avoiding.
As such, I’m going to take a look at five UK shares I believe could produce high total returns for investors in the long run.
UK shares to buy The first company on my list is the recruitment business Hays. With the unemployment rising around the world, income has plunged at this FTSE 250 recruiter. But I’m interested in the group’s long-term potential.
When the current crisis passes and employees return to the market, Hays’ services will be in demand. This could lead to rapid profit growth and high cash returns to investors. Therefore, I think now could be an excellent time to buy the stock while it trades at a low level ahead of the economic recovery.
Centamin may also be one of the best investments for 2020. I think this gold miner can provide investors with attractive returns, no matter what the future holds for the global economy.
Further economic turmoil could push the gold price higher, which will push up Centamin’s profits. And if the economy recovers, demand for gold jewellery and other gold items will rise. The miner should profit either way. In the meantime, the stock offers a 6% dividend yield.
Tate & Lyle (LON:TATE) is one of the oldest listed UK shares. Is offers similar qualities to Centamin. As a provider of ingredients to the food and beverage industries, the group’s sales should hold up relatively well, no matter what the future holds for the global economy. A dividend yield of 4.5% is also extremely attractive in the current interest rate environment.
Best investments for 2020 In the blue-chip space, Rio Tinto (LON:RIO) could be one of the best investments for 2020. The world’s largest iron ore miner may benefit from increased economic stimulus following the coronavirus crisis.
The price of iron ore has increased by more than 20% this year as countries such as China have started spending to offset the impact of the coronavirus slump. This growth could lead to improved returns for Rio’s investors. Analysts have already pencilled in a dividend yield of 7% for the company this year.
Another blue-chip income stock I have my eye on right now is British American Tobacco (LON:BATS). Ethical considerations aside, this income champion has produced excellent returns for investors over the past decade.
This trend looks set to continue. The stock currently supports a dividend yield of 8%, and the payout is well covered by earnings per share. Despite this, shares in the tobacco giant are off around 30% since the beginning of the year. Following this decline, I think this could be one of the best investments to buy for 2020.
Get The App
The post Best investments for 2020: 5 UK shares I’d buy right now appeared first on The Motley Fool UK.
Rupert Hargreaves owns shares in British American Tobacco. 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.
Motley Fool UK 2020
First published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.