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£3k to invest in an ISA? 3 UK shares (like this 6.1% dividend yield) I think could make you rich

Royston Wild
·3-min read
Image of person checking their shares portfolio on mobile phone and computer
Image of person checking their shares portfolio on mobile phone and computer

I believe that investors are missing out on a golden opportunity to get seriously rich with UK shares right now.

It’s clear that the global economy faces a huge challenge to rebound from the mass Covid-19 outbreak of 2020. But there are still many UK shares that should deliver terrific shareholder returns in the near term and beyond.

Weak risk appetite following the stock market crash means that many investors are missing a chance to make serious money. I’ve continued invest in my own Stocks and Shares ISA despite the uncertain economic outlook. And I think you should too.

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.

3 top UK shares to buy today

I believe the following three UK shares are all white-hot buys today. I think they should thrive regardless of the tough macroeconomic landscape:

  • A prolonged period of economic difficulty for the UK bodes well for insolvency specialist Begbies Traynor. You don’t just need to take my word for it, though. The Bank of England’s Financial Policy Committee has just predicted that the number of corporate insolvencies will rise from its current low levels. It says that “some companies may struggle because they were highly leveraged or unprofitable prior to March and others [face] pressure because of structural changes in the economy.” Begbies Traynor can expect to start getting very busy in the months ahead, then. And I reckon a forward price-to-earnings (P/E) ratio of 14 times makes this UK share a very attractive value buy.

  • 2020 has proved to be a blockbuster year for gold prices. The yellow metal struck record peaks north of $2,000 per ounce in the summer as intense economic turbulence drove safe-haven investment demand. According to latest World Gold Council data, global exchange traded funds reported inflows of above 1,000 tonnes between January and September. And they now sit at record highs of 3,880 tonnes following more rises last month. Gold prices have retreated recently but ongoing macroeconomic and geopolitical uncertainty should keep the metal well bought. And I’d buy Polymetal International shares to ride this trend. As well as carrying a P/E ratio of just 10 times for 2020 the gold digger sports a mammoth 6.1% dividend yield.

  • I’m considering snapping up stock in giant iomart as well. Why? Well the growth of home working in 2020 has been one of the biggest consequences of the Covid-19 outbreak. And as a major provider of cloud computing services — services which allow businesses to operate even when workers are out of the office — I’m tipping this UK share to thrive during the new decade. A recent survey by PwC revealed how almost three-quarters of British financial firms are reviewing their current office space requirements following a recent surge in home working. Similar trends can be witnessed across many sectors on these shores and further afield too. And as a result I expect the phones of iomart and its peers to begin ringing off the hook.

The post £3k to invest in an ISA? 3 UK shares (like this 6.1% dividend yield) I think could make you rich 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 has recommended Iomart 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