The 2020 stock market crash has provided a rare opportunity for investors to build a five-star portfolio at negligible cost. Don’t waste it! Ignoring the chance could scupper your chances of getting rich and possibly even retiring early with UK shares.
The number of Britons who made millions by investing in UK shares exploded during the last decade. They bought stocks for next to nothing after the 2008/2009 market crash and sat back and watched them rise in value as economic conditions improved and stock markets rebounded. The 2020 stock market crash gives you and I the opportunity to do the same.
Buying UK shares after the crash
I’m not saying you should go gung ho and embark on a buying spree. The stock market crashed as the global economic outlook darkened considerably. Plenty of UK shares now face a very uncertain future. But there are still a great many stocks with robust balance sheets to help them ride out the coming storm.
Here are a few FTSE 100 stocks with bright futures that I’d happily buy for my own Stocks and Shares ISA:
- RSA Insurance Group offers plenty of all-round value for UK share investors. As well as carrying a price-to-earnings (P/E) ratio of 10 times, the business sports a chunky 6% dividend yield. Dividends remain suspended but the strength of recent trading suggests shareholder payouts will be reinstated sooner rather than later. RSA has vowed “to catch up on missed dividend payments over time” and so another big annual payout for 2020 can be expected, even if investors need to wait a little bit of time to receive it.
- Ashtead Group’s share price is down only fractionally from its pre-crash levels. This means it trades on an elevated forward P/E ratio of 21 times. But I reckon the FTSE 100 share, which rents out equipment to the construction sector, is worth a handsome premium. It has a healthy balance sheet. It has growing market share thanks to rampant acquisition activity over the past decade. And by the looks of things, conditions in its key markets look quite robust. National Association of Realtors head Lawrence Yun just lauded the “booming” US housing market after data showed existing home sales rocket 25% month-on-month in July.
- Those seeking dirt-cheap UK shares might want to give ITV a spin today. The broadcasting colossus carries a forward P/E ratio of 7 times and sports an inflation-busting 4% dividend yield as well. Profits have sunk recently as advertising budgets sank and Covid-19 lockdowns smacked programme production. But the future is bright as ITV ramps up its global production capabilities and invests heavily in the fast-growing online segment.
Getting rich with the Fool
These FTSE 100 stocks are brilliant dip buys after the stock market crash. But they are just few of a great many UK shares that are irresistible buys at recent prices. With the help of The Motley Fool’s vast library of exclusive reports you can dig out even more top stocks to help you make a fortune.