Investors could be feeling a little punch drunk. The past two or three years have delivered a wild ride on the markets, that’s for sure!
But whether we are sitting on losses, profits, or a flat outcome in our portfolios depends on the investments we’ve made and the stocks we’ve been holding.
It’s a good time to find the best UK stocks
Now, with the pandemic clinging on and all the uncertainties surrounding the war in Ukraine, it may feel like a bad time to invest in stocks and shares. But during times of uncertainty, people like multi-billionaire Warren Buffett tend to go shopping for stocks. He knows he can get the best deals at lower valuations when everyone else is worried about something. And his tactics have been very successful over the decades.
Passive income stocks: our picks
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The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?
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There’s usually an opportunity in the markets, whatever the prevailing macroeconomic or geopolitical conditions. For example, I’m keen on several UK stocks right now and they’re on my watch list ready for further research. My aim is to buy some of these stocks when I have new funds available.
One on my list is trading platform provider IG Group. The company has a steady dividend record. And with the shares near 825p, the forward-looking yield for the year to May 2023 is just above 6%. The business tends to experience high customer demand during times of market volatility. And I see that as a positive attribute.
In the current robust commodity price environment, I like the look of Capital. The business provides a range of drilling and mine site services to mineral exploration and mining companies. And with the share price near 106p, the forward-looking dividend yield is around 3.5%. In March, the company delivered an impressive set of full-year results and said, “Tendering activity across all business units remains robust, with a number of opportunities progressing”.
Commodities, energy, and telecoms
I’d also pursue the commodities-price theme with a potential investment in diversified resources company Glencore. With the share price at 533p, City analysts anticipate a dividend yield just above 6% for 2023.
Energy is a big topic these days, and I’d address it head-on by targeting Renewables Infrastructure. It’s a closed-ended investment company focused on operational wind and solar photovoltaics (PV) installations in the UK and Northern Europe. And with the share price near 137.5p, the forward-looking dividend yield is around 5% for 2023.
Finally, I reckon telecoms and mobile money services provider Airtel Africa looks well placed to grow its earnings in the years ahead. The share price stands near 150p, as I write, leading to an anticipated yield of about 3% for the trading year to March 2023.
It’s possible for these businesses to miss their dividend estimates if operational challenges arise. However, I’m keen to research these businesses further with a view to owning their stocks for the long term.
