UK share investors have until 5 April to make the most of their £20,000 ISA allowance for this year. Allowances can’t be rolled over to the 2021–22 tax year, so I’d had better be prepared to use it or lose it forever!
I’m not obligated to buy British stocks as soon as I transfer money into my Stocks and Shares ISA, of course. Just transferring the money into an ISA is enough to utilise this year’s allowance. That said, here are three quality UK shares I’d happily buy for my stocks portfolio today:
#1: Getting yourself connected
I think getting a slice of the telecoms sector is a good idea as the adoption of homeworking takes off. FTSE 100 oil giant BP is the latest blue chip to embrace the flexible working philosophy. It has instructed tens of thousands of its employee to work from home two days a week following the Covid-19 crisis. I expect much more to come as companies try to keep their workers happy while cutting costs during this period of profits recovery.
I personally would invest in UK tech share Gamma Communications to ride this phenomenon. This business offers a spectrum of IT and telephone-based communications services for workers to stay connected to one another. A word of warning, though: this operator is much smaller than a great many of its competitors. It could well get brushed aside in this fast-growing market.
#2: A UK value share for dividend lovers
I recently explained why the Eurasian economy of Georgia could bounce back strongly following Covid-19. It’s a belief which the boffins at ratings agency Fitch share with me. They predict GDP growth of 4.3% and 5.8% in 2021 and 2022 respectively. It’s a theme I think could make UK share investors like me a lot of money with stocks like TBC Bank Group.
There are threats to the bank’s profits outlook, of course. The Georgian economy is hugely dependent on a strong tourism industry. And so rising worldwide Covid-19 infection rates could damage the economic rebound from 2021 and thus hit profits at TBC Bank should revenues struggle and bad loans keep rising. I still think the company is an attractive buy at current prices though. It trades on a forward price-to-earnings (P/E) ratio of just 6 times. TBC Bank boasts an enormous 5% dividend yield too.
#3: Guarding the digital realm
Now NCC Group doesn’t offer the same sort of terrific value on paper as TBC Bank. In fact this UK share trades on a sky-high forward P/E ratio of 36 times. It’s the sort of reading which could cause its share price to fall sharply if trading conditions begin to deteriorate.
There’s a reason why NCC Group trades on such a high multiple, though: NCC is expected to enjoy strong long-term profits growth. Cyber attacks on companies’ and individuals’ computer systems have grown at an exponential rate recently. That surge in flexible working I mentioned above will provide even more opportunity for hackers and Internet scammers too.