Stock market crash incoming? I’d buy these 3 UK shares regardless!

Fears of the Omicron virus variant and a stock market crash are rising, but I wouldn’t let it stop me buying these UK shares today.

| 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.

sdf

Stock market crashes are part and parcel of investing. As the current Omicron-induced market wobble shows, many investors are willing to sell shares at the drop of a hat.

Could we see a crash before the year’s out? It’s possible. Sooner or later there’ll be one. But I wouldn’t let that stop me buying stocks today. Here are three I’d be particularly comfortable owning even if markets were to crash tomorrow.

Government-backed income

Primary Health Properties (LSE: PHP) invests in primary healthcare facilities in the UK and Ireland. Its latest acquisition is quite typical, being a modern purpose-built facility, fully let to a substantial GP practice and a pharmacy. This acquisition increases its portfolio to a total of 519 assets.

Should you invest £1,000 in Bloomsbury 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 Bloomsbury made the list?

See the 6 stocks

The properties are let on long leases and most of the rental income is backed, directly or indirectly, by the UK and Irish governments. The lease duration and tenant profiles give PHP an exceptionally secure rental income stream.

The company pays quarterly dividends. These have totalled 6.2p for 2021, giving a yield of 4.1% at the current share price. This is the 25th consecutive year of dividend growth.

One downside risk for PHP is that the appeal of the primary health property sector is attracting new purchasers, meaning the group is facing increased competition for viable opportunities. Nevertheless, management believes PHP “remains exceptionally well positioned to deliver low-risk sustainable shareholder returns”.

Flight to safety

Gold often does well when stock markets crash. This is one reason why I’d be happy to buy Endeavour Mining (LSE: EDV) today. The company has six producing gold mines across Burkina Faso, Côte d’Ivoire and Senegal. It also has a strong portfolio of advanced development projects.

Nevertheless, I need to be aware that operational setbacks are a risk with miners and can hurt earnings and dividends. Having said that, the impact on multi-asset EDV would be lower than for a single-asset producer.

The company has an attractive progressive dividend policy. It’s set minimum payouts for 2021 ($125m), 2022 ($150m) and 2023 ($175m). At the current share price, these equate to yields of 2.1%, 2.5% and 3%.

But there’s a further element to the dividend policy. Distributions may be supplemented with additional dividends and share buybacks, providing the prevailing gold price remains above $1,500 per ounce and the company’s leverage remains low. It’s currently buying back shares.

One-stop shop

A third stock I’d be more than comfortable buying today, regardless of the risk of a market crash tomorrow, is Personal Assets Trust (LSE: PNL). The trust has a long history of successfully meeting its investment objective “to protect and increase (in that order) the value of shareholders’ funds per share”.

It does this by diversifying not only across equities, but also other assets. Equities currently account for 41.4% of its portfolio. Its top five stock holdings are Microsoft, Alphabet, Visa, Nestlé and Unilever. Meanwhile, it has 30.3% in US index-linked bonds, 20.3% in cash and UK treasury bonds, and 7.9% in gold bullion.

PNL’s multi-asset positioning mitigates the impact of a stock market crash. But on the other side of the coin, there’s the risk — almost an inevitability — that it will underperform in rampant bull phases of equity markets. I also need to be aware that it has an extremely conservative dividend policy and a current yield of just 1.1%.

Of course, there are plenty of other passive income opportunities to explore. And these may be even more lucrative:

We think earning passive income has never been easier

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

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.

G A Chester has no position in any of the shares mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Alphabet (A shares), Microsoft, Primary Health Properties, and Unilever. 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

Finger clicking a button marked 'Buy' on a keyboard
Investing Articles

Analysts have upgraded this FTSE 100 stock to Buy. What should investors do?

Associated British Foods shares have been uninspiring for some time. But is it finally time to consider buying the FTSE…

Read more »

Man changing battery on electric bicycle
Investing Articles

Prediction: in 12 months the sizzling National Grid share price could turn £10,000 into…

It's been another solid year for the National Grid share price and the dividend yield is decent too. So why…

Read more »

Businessman using pen drawing line for increasing arrow from 2024 to 2025
Investing Articles

Up 185% in 3 years, why does the market love this FTSE 250 stock

Over the past three years, this stock has vastly outperformed the FTSE 250. Dr James Fox takes a closer look…

Read more »

A handsome mature bald bearded black man in a sunglasses and a fashionable blue or teal costume with a tie is standing in front of a wall made of striped wooden timbers and fastening a suit button
Investing Articles

Looking for growth, dividends, or value? These 3 ETFs could be smart ideas to consider

Exchange-traded funds (ETFs) provide a way for investors to spread risk without sacrificing the possibility of huge long-term returns.

Read more »

Happy couple showing relief at news
Investing Articles

Is the Rolls-Royce share price fast becoming a joke?

The FTSE 100 engineering titan has done brilliantly in recent years. But our writer wonders whether the Rolls-Royce share price…

Read more »

Middle-aged white male courier delivering boxes to young black lady
Investing Articles

Is there a ‘best age’ to start buying shares?

Christopher Ruane weighs some possible pros and cons of waiting to start buying shares for the first time, versus starting…

Read more »

piggy bank, searching with binoculars
Investing Articles

Is it time to look again at the FTSE 250’s worst performers?

Our writer considers the prospects for two of the worst-performing shares on the FTSE 250, with falls of at least…

Read more »

A handsome mature bald bearded black man in a sunglasses and a fashionable blue or teal costume with a tie is standing in front of a wall made of striped wooden timbers and fastening a suit button
Investing For Beginners

Down over 40% in the past year, I think investors should consider these value shares

Jon Smith points out two value shares that have fallen heavily over the past year but are starting to look…

Read more »