UK share prices are edging higher again during the first trading sessions of December. The FTSE 100’s moving back above the psychologically-critical 6,400-point marker in Wednesday business. It could pave the way for a healthy Santa Rally in the days and weeks ahead.
I’m not pinning my hopes on the recent share rally continuing, though. News flow surrounding both Covid-19 and Brexit remain extremely fluid. Investor confidence could easily either fizz or flounder before the Christmas break.
Either scenario won’t impact my own investment strategy too much, though. I’ll continue investing in my Stocks and Shares ISA whatever happens.
3 UK shares with BIG dividends on my ISA watchlist
I’m confident that share prices will recover and recover strongly at some point. And I’ve already begun building my UK shares portfolio to capitalise on the eventual bull market. Here are three other top dividend-paying stocks I’m considering buying for my Stocks and Shares ISA today.
#1: LXI REIT
Real estate investment trust (or REIT) LXI REIT is a great buy for an economic recovery, I feel. Its broad range of properties (like hotels, car showrooms, offices, gyms and car parks) spans a range of highly-cyclical sectors. But its exposure to more defensive segments like care homes and discount retail offers some security in the event of a lumpy rebound in the UK economy. This UK share also remains on the hunt for acquisitions to allow it to capitalise on the eventual recovery. LXI REIT carries a chunky forward dividend yield of 5% at current prices, making it a great buy for income investors like me.
#2: Warehouse REIT
Another big-yielding property stock that could surge in the new bull market is Warehouse REIT. This share is one of the few to have risen in 2020 during the coronavirus crisis. This is because its exposure to the e-commerce sector has paid dividends during that crisis. And the company — which provides warehouses to major blue-chip companies like Amazon and Hermes — will benefit from the improvement in consumer confidence as the economy improves. Today, Warehouse REIT carries a meaty forward dividend yield of 5.2%.
#3: Devro
Sausage casings maker Devro is a brilliant buy for dividend investors, I feel, whatever their attitude to risk. Trading at the foodie has remained robust in 2020 despite the impact of Covid-19. And it can expect trading to pick up significantly during a post-coronavirus economic recovery. Demand for its products will rise in Europe as sales to the food service channel improve. The UK share can expect ripping emerging market sales to ratchet up a gear or two as well. Today Devro trades on a price-to-earnings (P/E) ratio of just 9 times. It carries a monster 6% dividend yield as well. Consequently I think it’s a perfect pick for value investors.