Investor confidence remains at rock bottom. The FTSE 100 is failing to break away from the 6,000-point marker and the FTSE 250 hasn’t made any meaningful progress over the summer. This is great news for those seeking to supercharge their returns from UK shares.
How so, you may ask? Well those who are brave enough to keep buying despite the Covid-19 crisis can expect to purchase UK shares for next to nothing. And watch them soar as economic conditions steadily improve.
History shows us that equity prices always recover from stock market crashes to hit record highs as trading conditions improve and profits recover. It may take several years, but long-term investors can expect to get very rich in the process.
3 dividend-paying UK shares on my watchlist
I’ve gone bargain hunting after the stock market crash. And there are plenty more cut-price UK shares I’m thinking of adding to my Stocks and Shares ISA. Give me a few minutes to talk about three of the exceptional dividend shares on my watchlist:
- If you’re seeking big FTSE 100 yields then BAE Systems might be more up your street. The defence giant carries a mighty 4.5% dividend yield at current prices. An added sweetener comes in the form of its low P/E ratio of 12 times. Defence spending is booming and, in 2019, revenues across the world’s top 100 arms suppliers rose 7% year-on-year, according to trade bible Defense News. Growing geopolitical tension means that sales of defence equipment should keep on moving northwards too.
- Now Fresnillo doesn’t offer the monster yields of BAE Systems. For 2020, its reading sits at 1.1%. But it’s still worthy of attention from income chasers. Why? City brokers expect shareholder payouts to double at the FTSE 100 silver miner between this year and next. The number-crunchers are bullish because of the bright silver price outlook. UBS, for example, now expects it to average $30 per ounce in 2021. The dual-role metal was last trading at $26.50.
- I reckon Devro’s a brilliant buy for income investors as well as, for 2020, the dividend yield sits just shy of 6%. The sausage casings maker reinstated the dividend a month ago, thanks to strong sales in emerging markets. This is a phenomenon which makes this UK share a top stock for growth hunters too. One final thing. At current prices, Devro trades on a low forward P/E ratio of 11 times.
Getting rich after the stock market crash
Devro et al are only a few of the dirt-cheap UK shares I’m thinking of buying right now. There are stacks of quality UK shares too good to miss. And The Motley Fool’s epic library of articles and exclusive reports can help you find them and get rich in the process.
The 2020 stock market crash provides a rare opportunity for you and I to seriously supercharge our investment returns. So don’t waste it by sitting on your hands. Get investing today!