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3 UK shares I’d buy in my Stocks and Shares ISA for 2021 and hold forever

Royston Wild
·3-min read
The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.
The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.

The economic meltdown in 2020 hasn’t stopped me from buying UK shares in my Stocks and Shares ISA.

It doesn’t matter what point of the economic cycle one finds themselves at. There are always stocks out there (like utilities companies and healthcare providers) that should deliver robust shareholder returns whatever the weather. Secondly, if you buy quality stocks with strong balance sheets you can expect them to rebound strongly over time. And many of these more cyclical stocks trade at unmissable discounts following the early 2020 stock market crash.

Top UK shares for 2021

Economic conditions remain as clear as mud as we move into 2021. And again that won’t stop me from continuing to invest in my ISA. However, if the global economy does stage a strong rebound next year I think these shares could soar in value:

#1: Mondi

I believe that packaging colossus Mondi is the perfect UK share for these uncertain times. If the economic recovery goes sideways it can depend on its huge exposure to the resilient food and fast-moving consumer goods (or FMCG) segment to drive sales higher. But if conditions do pick up then demand for its protective products will rise along with broader consumer spending levels. I also like this FTSE 100 share as it’s a great way to ride the online shopping phenomenon.

#2: Sea Limited

Buying UK shares isn’t the only way to play the e-commerce explosion of course. One overseas share on my watchlist today is New York-listed Sea Limited. Its Shopee internet shopping platform is hugely popular in increasingly wealthy Southeast-Asian markets, and revenues here soared 173% in the September quarter. But e-commerce isn’t the only string to its bow. Rising personal income levels should fuel demand for Sea Limited’s SeaMoney digital financial services products. And the meteoric rise of video gaming should blasts revenues at the US share’s Garena digital entertainment division to the stars.

Women wearing red sweater shopping online and using credit card at home office
Women wearing red sweater shopping online and using credit card at home office

#3: dotDigital Group

I believe that demand for dotDigital Group’s services could also shoot significantly higher next year. This UK firm operates an all-in-one marketing platform that allows businesses to contact their customers via e-mail, SMS message social media, and so on. Therefore it’s also in one of the box seats to play the e-commerce revolution. However, because marketing budgets also recover quickly when economic conditions improve, dotDigital could enjoy a particularly strong profits rise in 2021. I’m also encouraged by the company’s recent record of smashing through broker forecasts, giving it momentum moving into the new year.

#4: Animalcare Group

Pharmaceuticals manufacturer Animalcare Group might not be one of your classic cyclical shares. But thanks to soaring drugs demand for animals it’s still a brilliant pick for 2021 in my opinion. Growing meat demand is driving sales of its products for agricultural animals. Revenues from this segment rocketed 13% in the first half of 2020. And rising levels of global spending on companion animals is propelling sales of its products to veterinarians, too. I’d buy this particular UK share in my ISA for next year and hold it for years.

The post 3 UK shares I’d buy in my Stocks and Shares ISA for 2021 and hold forever appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Sea Limited. The Motley Fool UK has recommended dotDigital Group. 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.

Motley Fool UK 2020