Here are my top UK picks for my 2024 Stocks and Shares ISA

What should we buy for a Stocks and Shares ISA in 2024? I’d say that really should depend a lot on what we already have.

| 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.

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.

Image source: Getty Images

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.

sdf

Starting a new Stocks and Shares ISA in 2024, I’d go for a diversified selection of good quality stocks.

I’ve seen newcomers get excited and go for the hot stocks that everyone is talking about. But if the latest sure-fire winner crashes, they can be put off the stock market for life.

But I’m not a newcomer, and I’m already diversified and feel happy about my safety.

Should you invest £1,000 in Associated British Foods 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 Associated British Foods made the list?

See the 6 stocks

Raining gold

And that draws me to one of my top quotes from ace investor Warren Buffett…

Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.

2016 letter to shareholders

I see lots of gold in UK stocks in 2024. So I want to pile as much cash as I can into the small few that I think could be the best value right now.

Cheap bank

I’ve looked at NatWest Group (LSE: NWG) before, and I make no apologies for coming back to it.

I have Lloyds Banking Group shares in my ISA. So, if I were just starting, it could be too risky to buy more banks. I’d go for a different sector instead.

As it is, I’d still face risk adding NatWest to the pile. That goes for all banks this year, as we just don’t know how much pain the economy will have caused them yet.

The government also still has a big stake in NatWest. And that could hurt the share price if and when it wants to sell.

But with a 7.4% forward dividend yield and solid earnings forecasts, NatWest heads my ISA wanted list.

Go for growth

I also have more Scottish Mortgage Investment Trust (LSE: SMT) shares in my sights.

The discount to net asset value has fallen to around 11%, after the share price has regained some lost ground. It’s been closer to 20% in the past.

That might echo improving sentiment towards the Nasdaq stocks it buys. And over the past 12 months, the US growth index has outstripped the Scottish Mortgage price.

The main danger is that US markets could be a bit overheated now. And Nasdaq stocks are back close to their peak of 2021, so that risk looks like a real one.

But with the trust still lagging the index by so much, I think I might just take it.

A bit volatile?

I’ve watched ITV shares for a while, and they’ve been a bit volatile.

I guess thats not surprising, as ITV’s profits are so closely tied to advertising spending. And when people have less money in their pockets, it might not be worth trying too hard to sell them stuff.

But right now, we’re looking at a whopping 8.4% forward dividend. And a super low price-to-earnings (P/E) ratio of just five. I think this might be another risk worth taking.

Finance focus

I might well buy all three of these this year, if the prices are still low enough each time I have some investment cash ready.

But, on balance, my 2024 ISA buys will probably be weighted to finance stocks. I just see them as the best FTSE 100 value today. But I do think investors should work on diversification first.


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.

Alan Oscroft has positions in Scottish Mortgage Investment Trust Plc. 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.

More on Investing Articles

Array of piggy banks in saturated colours on high colour contrast background
Growth Shares

Here’s what analysts expect for the Tesco share price in the coming year

Jon Smith runs through the outlook for the Tesco share price using both his own opinion (and research) and that…

Read more »

Night Takeoff Of The American Space Shuttle
Investing Articles

This ex-penny stock jumped 16% today! Should I buy it for my ISA?

Our writer revisits a small-cap UK stock that he passed up on last year for his Stocks and Shares ISA.…

Read more »

Two female adult friends walking through the city streets at Christmas. They are talking and smiling as they do some Christmas shopping.
Investing Articles

How much do you need in an ISA to target a £2,500 monthly income?

Harvey Jones thinks FTSE 100 shares are a brilliant way to generate a long-term second income stream, and names a…

Read more »

Businessman hand stacking money coins with virtual percentage icons
Investing Articles

These ‘boring’ FTSE 100 dividend stocks just hit 52-week highs!

Who needs to be part of the AI-frenzy when certain dividend stocks are making an absolute packet for more conservative…

Read more »

Businesswoman calculating finances in an office
Investing Articles

This FTSE 100 stock is forecast to beat Rolls-Royce in the coming year — and it’s only £1!

Rolls-Royce has been the FTSE 100 star of 2025, but analysts think this £1 homebuilder could deliver over three times…

Read more »

Mature black woman at home texting on her cell phone while sitting on the couch
Growth Shares

Down 86% over five years, this FTSE stock could be nearing the bottom

Jon Smith points out a FTSE share that has been beaten up in recent years but could start to show…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

This is nuts. When’s the stock-market crash?

Share prices keep hitting record highs in 2025. The bad news for investors is that asset prices look inflated, which…

Read more »

Santa Clara offices of NVIDIA
Investing Articles

AI wars: is the Nvidia share price under threat from rival AMD?

Up 56% in a year, the Nvidia share price looks unstoppable. But a new AI chip from rival AMD threatens…

Read more »