6% dividend yield! 2 UK shares I’d buy in February and hold for 10 years

As the market continues to tumble, Zaven Boyrazian explores potential long-term buying opportunities for income and growth investors.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

With the market having a bit of a meltdown in recent weeks, plenty of UK shares have taken a tumble. Yet many of the underlying businesses are actually performing admirably. So, is this a buying opportunity for my portfolio? Let’s explore two dividend stocks that I’m tempted to buy today and hold in my portfolio for the next decade.

Surging profits, dwindling share price

I’ve explored Anglo Pacific Group (LSE:APF) before. But as a reminder, this is a royalties mining business. It provides the upfront funds for mining companies like Rio Tinto to develop a mining site in exchange for a percentage of the materials dug up from the ground.

In recent years, management has been expanding its portfolio of sites to focus on renewable and battery metals. In early 2021, the group completed its largest acquisition to date, adding a sizeable cobalt stream to its royalties. And with demand for the metal surging, courtesy of the electric vehicle space, the company is already reaping the rewards.

Should you invest £1,000 in Ecora Resources Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ecora Resources Plc made the list?

See the 6 stocks

Its cobalt mine alone contributed a total of $16.5m (£12.2m) last year. And with supply chain disruptions pushing up material prices, the group’s total revenue surged by 95% to a new all-time high! Yet despite this impressive growth, shares of this UK business are actually flat over the last 12 months and still trade below pre-pandemic levels.

The rising materials prices obviously haven’t gone unnoticed by the competition. And with many looking to capitalise on the situation, the supply will eventually meet the demand. This would undoubtedly send metal prices back down and disrupt Anglo Pacific’s impressive underlying growth.

But over the long term, demand for raw materials isn’t likely to disappear. And at today’s price combined with a 6.3% dividend yield, this could be one of the best UK shares to buy today for my portfolio. At least, that’s what I think.

Digging for profits with UK shares

Continuing the theme of mining companies, Glencore (LSE:GLEN) is another that has caught my attention this week. Just like Anglo Pacific, the group has a diversified metals portfolio geared towards renewable energy metals like copper, cobalt, and nickel.

The group has also profited from rising materials prices. So, it’s hardly surprising to see the revenue stream expand by 43%, hitting $203.8bn (£150.1bn) in 2021. Meanwhile, profits returned to their highest point since 2018. What’s more, with inflation pushing up metal prices even higher, it’s possible that the financial performance of 2022 could be even more groundbreaking. That’s why I think this could be one of the best shares to buy and hold today.

Of course, there are some risks to consider. On top of the exposure to fluctuating commodity prices, Glencore’s cobalt production comes mainly as a by-product of its copper mining activities in the Democratic Republic of Congo. This region is not exactly known for political stability, and should a shake-up in government occur, Glencore’s mining activities could become compromised.

However, with additional cobalt streams pouring in from Australia and Canada, along with the rest of its metals portfolio, I feel buying and holding shares in this UK mining group is a risk worth taking.

But there are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Zaven Boyrazian owns Anglo Pacific. The Motley Fool UK has recommended Anglo Pacific. 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.

More on Investing Articles

Investing Articles

Prediction: these FTSE 100 stocks could be among 2025’s big winners

Picking the coming year's FTSE 100 winners isn't an easy task, but we're all thinking about it at this time…

Read more »

Investing Articles

This UK dividend share is currently yielding 8.1%!

Our writer’s been looking at a FTSE 250 dividend share that -- due to its impressive 8%+ yield -- is…

Read more »

Investing Articles

If an investor put £10,000 in Aviva shares, how much income would they get?

Aviva shares have had a solid run, and the FTSE 100 insurer has paid investors bags of dividends too. How…

Read more »

Investing Articles

Here’s why I’m still holding out for a Rolls-Royce share price dip

The Rolls-Royce share price shows no sign of falling yet, but I'm still hoping it's one I can buy on…

Read more »

Investing Articles

Greggs shares became 23% cheaper this week! Is it time for me to take advantage?

On the day the baker released its latest trading update, the price of Greggs shares tanked 15.8%. But could this…

Read more »

Investing Articles

Down 33% in 2024 — can the UK’s 2 worst blue-chips smash the stock market this year?

Harvey Jones takes a look at the two worst-performing shares on the FTSE 100 over the last 12 months. Could…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

Are National Grid shares all they’re cracked up to be?

Investors seem to love National Grid shares but Harvey Jones wonders if they’re making a clear-headed assessment of the risks…

Read more »

Investing For Beginners

Here’s what the crazy moves in the bond market could mean for UK shares

Jon Smith explains what rising UK Government bond yields signify for investors and talks about what could happen for UK…

Read more »