Admittedly, the prospect of a strong global economic rebound in 2021 is looking pretty fragile today. But this murkiness hasn’t dented my desire to keep buying UK shares for my Stocks and Shares ISA. Here are four penny stocks (shares that cost less than £1) I’m considering buying today:
#1: Eastern promise
I reckon DP Eurasia is a top dip buy following its slump from early March’s 18-month highs above 80p. This penny stock is “the exclusive master franchisee of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan and Georgia,” according to its website. These are markets where, just like in Britain, sales are rising strongly. Aggregated system sales across the company’s territories soared almost 15% year-on-year in 2020. Bear in mind though, that massive economic instability in its core Turkish marketplace might throw a spanner in the works here. Today, DP Eurasia trades around 62p per share.
#2: A housing hero
I also think Residential Secure Income, which trades at 93p per share, is an attractive long-term buy. This UK share is a real-estate investment trust (REIT) which helps finance the construction of shared ownership and buy-to-let properties. This is a booming market, thanks to Britain’s chronic homes shortage. And it’s one which, because of REIT rules, means this penny stock should remain a big dividend payer in the years ahead. These sort of companies have to distribute a minimum of 90% of annual profits through dividends. That said, the firm’s expected growth trajectory could take a hit if a third Covid-19 wave hampers housebuilding activity again.
#3: Another penny stock for property fans
Residential Secure Income is a great buy for these uncertain times too, as the company operates in a highly-defensive sector. We need a roof over our head whatever broader economic conditions are like, right? Well, the same can be said for Assura, a property REIT which specialises in building and operating primary health facilities. Citizens don’t stop needing medical treatment when times are tough. And this UK share has terrific profits potential as an ageing population demands huge and ongoing investment in healthcare properties. Beware however, a changing NHS policy could damage demand for Assura’s services. This penny stock trades at 72p per share.
#4: A tasty selection
I also like the look of Premier Foods. Food production is another highly defensive sector, and so this UK share’s cakes, cooking sauces and gravies sell well during economic upturns and downturns. But I believe Premier Foods might be a great buy for the new bull market too as revenues would benefit from the likely rise in broader consumer spending levels as the economy improves. I like this share because its brands such as Bisto gravy, Mr Kipling cake and Ambrosia custard are go-to labels in their respective categories. Though be aware that this penny stock isn’t totally immune to intense competition in its markets. The company currently changes hands at 97p per share.
The post 4 top penny stocks I’d buy for my Stocks and Shares ISA appeared first on The Motley Fool UK.
Royston Wild has no position in any of the shares mentioned. 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.
Motley Fool UK 2021