The 2020 stock market crash presents a great opportunity for stock investors to get rich from UK shares. Not since the market crash of a decade ago have stock investors had a chance like this to buy top-quality British companies at little cost.
Market confidence remains low and it can be tempting to sit on the sidelines as the Covid-19 crisis rolls on. Other issues like Brexit and escalating trade tensions between the US and other major economies cast a shadow over the global economy, too. But in my opinion those who decide against buying UK shares today lose the possibility of supercharging their returns over the long run.
3 oversold dividend shares I’d buy today
History shows us that investors who buy quality shares following stock market crashes can make a fortune by buying low and watching them balloon in value as economic conditions improve. With this in mind, let me talk you through a few brilliant (and dirt cheap) UK shares on my watchlist:
- The Covid-19 lockdown has hammered food-to-go manufacturer Bakkavor Group and its share price. Like-for-like sales dropped 5% between January and May, recent financials showed. But I’d buy into recent share price weakness as food-to-go is still a potentially explosive investment theme to ride. It is the fastest-growing segment of the UK food market these days. Today Bakkavor trades on a low forward price-to-earnings (P/E) multiple of 8 times. It boasts a 4.5% dividend yield, too.
- Urban Logistics is down fractionally in 2020 by comparison but still offers splendid value. A forward P/E ratio of 19 times isn’t that cheap on paper, but I believe this UK share offers terrific value given the rocketing rate at which e-commerce continues to grow. On top of this, the warehouse and logistics expert offers a bulky 5% dividend yield at current prices.
- Vodafone Group provides much for value chasers to get excited about too. It trades on a forward PEG ratio of 0.7 following the crash and offers a near-7% dividend yield, too. The FTSE 100 giant is likely to witness strong revenues growth in the years ahead as worldwide mobile phone usage grows. And it has huge opportunities in emerging markets, too, where on average 11% of citizens still don’t own a phone.
Getting rich with UK shares
These are just a few of the excellent UK shares that eagle-eyed investors can buy today. Snapping up oversold stocks and watching them rebound is essential if you want to get seriously rich by investing in shares. Just ask one of the hundreds of ISA millionaires who made their fortunes following the 2008–09 stock market crash.
With the help of The Motley Fool’s extensive catalogue of special reports you can find even more oversold UK shares to get rich with. The recent market crash presents another too-good-to-miss investing opportunity, in my opinion. And with the right strategy you could make some seriously spectacular returns.
The post Stock market crash: I think these are 3 of the best UK shares to buy in an ISA to make a million 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