Choosing which UK shares to buy before the ISA deadline can be tricky, especially amid the considerable market volatility we’ve seen in recent weeks.
However, while the current turmoil, triggered by Putin’s invasion of Ukraine, has shaken the conviction of many investors, it has also created a number of opportunities.
For me, now is a good time to invest. In recent weeks I’ve doubled down on several investments and bought stocks that have been on my watchlist for months.
Should you invest £1,000 in Crest Nicholson right now?
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5 April marks the deadline for ISA contributions in this financial year, and while there’s nothing to stop me popping my money in the ISA wrapper and leaving it as cash, I think there are bargains to be had right now.
Here’s three stocks I’d invest my money in before next month’s annual ISA deadline.
Crest Nicholson
For me, the housing sector is a great place to look for attractive dividend yields and plenty of upside potential. Crest Nicholson (LSE:CRST) is certainly trading at a discount, having fallen from highs of over £6 a share in 2017 to less than £3 today.
Crest, like other housebuilders, has underperformed in 2022 amid concerns of further interest rate rises, heightened supply chain costs and an ongoing disagreement with the government about recladding thousands of buildings deemed unsafe.
However, the Surrey-headquartered firm has emerged from the pandemic with a strong balance sheet, returning to profit in 2021 after recording a £13.5m loss in 2020.
In January, Crest said that 63% of revenue for the 2022 financial year was already covered and that the firm had a strong footing for future growth.
Crest currently offers an attractive 4.6% dividend yield. In 2021, the dividend coverage ratio was a healthy 2.5.
Vistry Group
Yes, it’s another homebuilder. The Vistry Group (LSE:VTY) share price has also suffered over the last six months, down more than 20% since September.
However, this belies some positive performance data. Vistry posted pre-tax profits of £319.5m in 2021, far above pre-pandemic levels, and the company says that it’s in a good position to further increase profits and returns in 2022, noting a “very strong” forward sales position.
While there may be headwinds in the shape of interest rate rises and inflationary pressure, for me, Vistry Group looks like a good buy right now.
The firm is currently offering an enticing 5.9% dividend yield that is projected grow further in the coming years. The dividend coverage ratio is also healthy, standing at 2.09 in 2021.
HSBC
The HSBC (LSE:HSBA) share price has collapsed in the wake of Putin’s invasion of Ukraine, down more than 15% in the last month. It’s not been an easy year for the UK’s largest bank; HSBC has also had to navigate other pressures including the fallout from the Evergrande fiasco in China.
However, I’m bullish on this stock, which is still trading far below its pre-pandemic level. The bank turned a pre-tax profit of $18.9bn in 2021, trumping its performance in 2019 and 2017.
I also like HSBC’s long-term strategy. The firm announced it would accelerate its “pivot to Asia” plan last year, increasing its exposure to markets with high-growth potential.
Currently the bank is offering an attractive 3.88% dividend yield, making this blue-chip stock a good buy for me.
