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Stock market crash: 3 top UK shares I’d buy in an ISA and hold for 10 years

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.

Sure, the global economy is in danger of a prolonged and painful economic downturn. But it doesn’t mean investors in UK shares can’t expect to make a terrific return on their invested cash.

There are stacks of top-quality defensive and counter-cyclical stocks that should deliver great profits despite the Covid-19 crisis. Dip buying interest remains weak following the 2020 stock market crash, but you and I can steal a march on the rest of the market by buying undervalued shares today and watching them balloon in value once risk appetite picks up.

3 top UK shares for ISA investors

Here are three quality UK shares that would look great in any Stocks and Shares ISA:

  • LXI REIT’s earnings multiple of 17 times isn’t that attractive for value hunters. But don’t look away yet as the property play really packs a punch when it comes to dividends. At current prices this UK share offers a mighty 5.2% yield for 2020. And it offers terrific peace of mind for investors during these troubled times. This UK share’s collected a whopping 97% of its fourth-quarter rents despite the rolling Covid-19 crisis, it announced recently. It’s a performance that pays tribute to LXI’s huge exposure to defensive sectors, like discount retail and healthcare.

  • The PRS REIT is another real estate investment trust with exceptional defensive qualities like LXI. This UK share rents out private newbuild properties to families, a segment of the buy-to-let segment which is particularly undersupplied. No wonder the business announced this month that “rental income and demand for properties remained strong” during the fiscal year to June. But PRS isn’t just a great buy for the here and now. Through its aggressive homebuilding programme, the company is significantly boosting its profits outlook over the longer term too. One final thing. At current prices, PRS sports a 5.8% dividend yield for this year. And this helps offset a hefty P/E ratio above 30 times.

  • Smith & Nephew suffered early in 2020 as the global health crisis smacked demand for non-essential healthcare. Thus, revenues generated from its artificial joints and limbs suffered a temporary blip. Pleasingly though, activity at the FTSE 100 has enjoyed a “significant” recovery as elective surgeries have picked up again. Even if they falter again, I’d be confident to buy this UK share as the long-term sales outlook for its healthcare products remains white hot. And particularly so in its emerging markets. I consider Smith and Nephew fully worthy of a high forward P/E ratio of 30 times.

Helping you make lots of cash

So don’t let the Covid-19 crisis discourage you from buying UK shares. We all need to be more careful before splashing the cash, due to the tough economic outlook. But experts at The Motley Fool can help you build a five-star shares portfolio that could help you get seriously rich. So do some research and get investing today!

The post Stock market crash: 3 top UK shares I’d buy in an ISA and hold for 10 years 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 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 2020