But I’m not down in the dumps as we head into 2023. My long list of possible stocks to buy is packed with companies that should still deliver decent dividends in the near term.

Here are two top income shares that I’m aiming to buy next year.

A FTSE 100 faller

The SSE (LSE: SSE) share price has slumped in recent weeks. It’s a descent that reflects fears of a multi-billion-pound windfall tax being slapped on renewable energy stocks.

I’d still buy the FTSE 100 business despite this threat to profits, however. The essential service it provides gives SSE terrific earnings visibility during good times and bad. So it could be worth its weight in gold as macroeconomic turbulence looks set to reign again in 2023.

I think SSE could prove to be a great long-term buy, too. Demand for low-carbon energy is growing in response to the worsening climate crisis. And the company last November launched a £12.5bn investment programme to accelerate expansion of its renewable energy asset base.

Recent share price weakness leaves the power generator trading on a forward price-to-earnings growth (PEG) ratio of 0.4. A reading below 1 indicates a stock that is undervalued by the market.

SSE also carries a healthy 6.1% dividend yield today. This is a great all-round value stock to buy in my opinion.

A top AIM stock

As I say, 2023 looks set to be a painful year for the UK economy. Company insolvencies are rising sharply and are in danger of continuing as inflationary pressures persist.

This is why I’d buy Begbies Traynor Group (LSE: BEG) for my shares portfolio. The AIM company provides a wide range of services for distressed business and is an expert in insolvency practices.

The company operates in a competitive market, which in turn creates a risk to earnings. However, the rate at which its market looks set to grow could still deliver terrific profits growth.

Latest research from Begbies showed the number of company insolvencies jump 25% year on year in the third quarter. The number of companies in “significant financial distress” meanwhile rose 8%, to 610,000.

News of these sharp increases is extremely unfortunate. But as an investor I need to consider how I can protect my shares portfolio in these tough times. And buying Begbies Traynor shares is one way I could do this.

The company’s 3% yield isn’t the biggest out there. But I’d like to buy the business as (hopefully) an effective way to boost my long-term passive income. Annual dividends have risen for the past five years thanks to a vast improvement in its balance sheet. This includes a 17% year-on-year increase last time out.

Down 27% this year, I think the London Stock Exchange’s second-tier index is now packed with brilliant value stocks. Here are two dirt-cheap shares on my shopping list today.

Begbies Traynor Group

I’m surprised to see the Begbies Traynor Group (LSE: BEG) share price trekking lower again. This is a UK share which stands to gain from the spluttering UK economy.

Begbies Traynor is an expert advisor when it comes personal and corporate insolvency. It also provides services in other fields including restructuring, capital management, and corporate finance.

In other words, when businesses start to struggle, this one comes alive. Last month it advised that it had made “a good start” to the financial year ending April 2022 “with encouraging activity levels” across the company.

Latest data from the Office for National Statistics suggest the FTSE 250 firm will get a heck of a lot busier in the months to come too.

Due to surging energy costs, total company insolvencies hit 5,629 in the second quarter. This was the highest level since 2009 when Britain’s economy was suffering from the shockwaves of the global economic crisis.

Begbies Traynor operates in a highly competitive industry. But the company’s long history of unbroken double-digit earnings growth — helped in part by frequent acquisitions — shows how effective it’s been in neutralising this threat.

City analysts expect annual earnings to grow another 9% this year too. That leaves it trading on an undemanding forward price-to-earnings (P/E) ratio of 13.2 times.

Safestore Holdings

Property stocks like Safestore Holdings (LSE: SAFE) have been smacked by the flight from UK assets during the last week. I consider this to be a great opportunity to grab a bargain.

Okay, falling consumer spending power presents a threat to self-storage businesses. So do rocketing interest rates as they weigh on the housing market. Home movers account for a significant chunk of revenues for the likes of Safestore.

But it’s my opinion that these dangers are baked into the FTSE 250 firm’s low valuation. City brokers think earnings will jump 40% in this financial year (to October). This results in a forward price-to-earnings growth (PEG) ratio of just 0.4. A reminder that any reading below 1 suggests a stock is undervalued.

As a potential investor, I’m highly reassured by Safestore’s latest trading update. In September, it said that like-for-like revenues were up 9.5% in the three months to July, with like-for-like enquiries in August “at record levels”.

Analysts think the UK self-storage market will grow at an annualised rate of 7.5% between now and 2027. This will give Safestore a terrific opportunity to supercharge its profits.

After all, investing in large-cap companies has allowed countless UK investors to make their plenty of money down the years.

But there’s a treasure trove of top stocks below the major indices that can also help individuals make serious money. And with dividends rising from smaller companies on the Alternative Investment Market (AIM), now could be a good time to go hunting for some lesser-known companies.

AIM dividends keep soaring

According to Link Group, dividends from AIM-listed companies rose 7.4% in the first half of 2022 to £574m. However, the data business says that the level of total payouts was held back by fewer special dividends. Stripping out these one-off rewards, dividends surged 19.8% year on year.

Link Group says that “the strong underlying rate of growth in the first half of 2022 follows a rapid rebound in 2021 from the pandemic”. Last year, dividends jumped 60% from 2020 levels (or 39.9% excluding special dividends).

And for the current year Link expects total dividends from AIM stocks to rise 2.5% year on year to £1.22bn. On an underlying basis it’s predicting growth of 13.3%.

Two dividend stocks to buy

With this in mind here are two AIM stocks I think could deliver healthy dividend income for years to come.

1. Begbies Traynor Group

Insolvency specialist Begbies Traynor’s (LSE: BEG) hunger for accquisitions leaves it at risk of unexpected costs or overpaying to generate growth. But I’m highly encouraged by the firm’s record on this front and think earnings could soar as insolvency cases in the UK rocket.

Begbies Traynor’s grown the annual dividend by around 8% in the past four years. City analysts think another such hike is due this year too, resulting in a 2.6% dividend yield.

City analysts think the company’s earnings will rise 9% in the current financial year. This means the predicted dividend is also covered 2.6 times, well inside the safety benchmark of 2 times and above. There’s a high chance then that Begbies Traynor will make this expected payout.

2. Greencoat Renewables

I think Greencoat Renewables (LSE: GRP) is a perfect income stock to buy for these uncertain times.

Electricity demand remains broadly stable at all points of the economic cycle. Consequently this AIM business — which owns wind and solar power assets in Ireland and Continental Europe — should have the means to pay dividends even if the global economy tanks.

This view is shared by City brokers. And so Greencoat Renewables carries a fatty 5.1% dividend yield for 2022.

My main concern with buying renewable energy stocks like this is the huge cost it takes to set up wind farms and other low-carbon assets. This can take a big bite out of the balance sheet.

But, on balance, I think Greencoat’s will prove a brilliant buy for the long term as demand for clean energy heats up.

This week, the National Institute of Economic and Social Research (NIESR) warned that the global economy is “fraying at the edges“. It reduced its global growth forecasts for the next two years — which stood at 3.3% and 3.2% for 2022 and 2023 respectively — to 2.8%.

The NIESR added that “there are increased recession risks in a number of countries” as inflation continues to soar.

Pleasingly however, there are many stocks on the London Stock Exchange where trading should remain robust — or perhaps even thrive — in the event of a recession.

Here are three I think cautious investors like me should buy this August:

1. Begbies Traynor Group

Begbies Traynor (LSE: BEG) is a stock which thrives in tough times like these. It’s an insolvency practitioner and provides other services for companies in distress.

In fact, the business is already performing strongly as the United Kingdom economy flatlines. It’s why it said last month it already expects full-year trading to be towards the top end of expectations for the financial year beginning May.

Fresh Insolvency Service data this week suggests that profits forecasts could be steadily upgraded too. This showed the number of corporate insolvencies in England and Wales hit a seasonally-adjusted 5,629 in quarter two. This was up a whopping 81% year-on-year.

My only concern with Begbies Traynor is how a lack of suitable acquisitions could hit its long-term growth strategy.

2. Greggs

Greggs (LSE: GRG) is another top stock to buy for when times get tough. This is because Britons’ love of a hot drink and a sausage roll remains undimmed at all points of the economic cycle.

It’s also because the baker’s large ranges of low-cost foods are perfect products to sell when consumers feel the pinch. This explains why sales jumped 27.1% year-on-year in the first half of 2022.

There are other reasons why, as an investor, I like Greggs. Steps like introducing meat-free and healthier options to its menu have proved highly successful. So has its decision to embrace e-commerce and introduce services like click & collect and delivery.

I’d buy Greggs shares despite the rising threat of cost inflation to its profits.

3. Premier Foods

Finally, I’d also snap up shares in Premier Foods (LSE: PFD) today. That’s even though it operates in a highly-competitive marketplace.

Like Greggs, this stock benefits from the fact that our need for food remains constant, irrespective of broader conditions. And just like the baker, Premier Foods has a broad stable of foods that are cheap to buy and prepare. Products such as its Batchelors Super Noodles and Cup a Soup.

The strength of its popular brands like Mr Kipling also help profits remain stable during recessions. As robust recent results from Unilever and Reckitt show, shoppers continue to buy the brands they love in massive volumes, even when their purses are lighter. This enables companies like this to keep raising prices.

Netflix

The investor jury has been out on Netflix (NASDAQ: NFLX). The streaming service has spent heavily on expensive content, meaning it has a high cost base. But there are signs that consumers tightening their belts is leading to some cancelling their subscriptions. Could a recession badly hurt revenues and profitability?

I see a risk that it could. But things may go the other way too. As people cut back spending on nights out and restaurant dinners, the allure of home entertainment might actually grow.

I also think a recession could help Netflix sharpen its business model. One challenge it faces is how to price its service for markets where incomes are lower than in developed countries. Cracking that problem could open up huge new opportunities for the firm. A recession in existing markets will help the company understand the limits of its pricing power in minute detail. I reckon it could use that data to figure out the optimal pricing models to help boost sales globally.

I see Netflix as among the growth shares that could do well in a recession. I would consider adding more to my portfolio.

Begbies Traynor

A different logic applies to Begbies Traynor (LSE: BEG).

The restructuring specialist is already in growth mode. Revenues have more than doubled in the past four years. Unfortunately a recession would likely cause a lot of businesses to struggle. That could provide more opportunities for Begbies Traynor.

The company has been raising its dividend annually and yields 2.5%.

One risk here is profitability. Last year the company made a loss. In general, its profit margins are slim.

Yet I think this growth stock could do well in a recession as business would likely expand. But the profit margin is not consistently attractive enough for me to add the shares to my portfolio at the moment.

B&M

The growth story at discount retailer B&M (LSE: BME) has been very strong for the past few years. But has it now fizzled out? After all, both revenue and profits dipped slightly last year.

I see that as a pause for breath after the retail chain had grown so strongly over the previous few years. Discounters tend to do well when the economy does badly. Shoppers watching their pennies can mean they attract new customers. And existing shoppers may choose to spend a higher percentage of their weekly budget in stores like B&M than costlier rivals.

A change in management is a risk to profits though, if the new chief executive cannot keep a tight lid on costs. That has been a key part of the chain’s recipe for success so far. But B&M is now well-established and benefits from a strong customer following. I think its price focus could help it grow as a business in coming years.

This growth shares is down 28% in the past year. I see that as a buying opportunity for my portfolio.

Here’s a quick rundown of three great growth shares I’d buy right now.

Begbies Traynor Group

Insolvency specialist Begbies Traynor Group (LSE: BEG) has a great history of earnings growth. A steady stream of acquisitions mean annual profits growth has averaged more than 20% during the past five years.

City analysts think earnings here will rise by a more muted 5% in the current financial year to April 2023. However, given the worsening economic landscape I think these forecasts could be significantly upgraded in the weeks and months ahead.

The number of corporate insolvencies in England and Wales jumped 40% year-on-year in June, according to latest Insolvency Service figures. There’s a good chance the figure will keep climbing too as the cost-of-living crisis smacks British business.

This week the government announced fresh financial support for small businesses. Further action like this could hamper trading at Begbies Traynor. But, all things considered, I think it’s a top buy.

Bloomsbury Publishing

Book publisher Bloomsbury Publishing (LSE: BMY) is another top stock with a strong growth pedigree. And while forecasts suggest a rare earnings decline this year (to February 2023) I’d still buy the business today. Current forecasts suggest profits will fall 6% year-on-year.

You see, Bloomsbury is the home of Harry Potter. The Hogwarts wizard is a cash cow and as popular as he’s ever been (the series ranked among the company’s best-selling titles in the four months to June, financials this week showed).

The guaranteed revenues that Master Potter produces is a big boost to Bloomsbury’s bottom line. But it’s not the only reason I’d invest in the company today. I also like its successful drive into the world of academic publishing. Sales at Bloomsbury’s Academic and Professional division soared 49% year-on-year between March and June.

Bloomsbury is performing strongly today. But a growth investor needs to remember that a range of other media (video games, streaming and the like) still pose a long-term threat to the business.

Springfield Properties

Rising interest rates are a problem for homebuilders like Springfield Properties (LSE: SPR). However, this is a danger I think is reflected in the low valuations of these sorts of firms.

This particular growth stock trades on a forward price-to-earnings (P/E) ratio of 6 times. That’s based on predictions annual earnings will rise 30% in the current financial year (to May 2023).

Home prices continue to soar despite the current backdrop of rising rates and high economic uncertainty. Rightmove data this week showed average asking prices rose 9.3% in June. And this encouraged the property listings business to increase its full-year growth forecast to 5-7%.

Demand for Springfield Properties’ new properties continues to soar due to the UK’s chronic housing shortage. And it’s a situation I expect to deliver strong earnings growth here long into the future.

The UK government, for instance, is set to announce reforms to the industry very soon. And if rumours are to be believed it could be scary reading for gaming companies. The Times has reported that measures like maximum stakes and the banning of free bets could be introduced.

But despite this danger I believe 888 in particular could be a great dip buy following recent share price weakness.

City analysts think annual earnings here will rise 37% in 2022 and a further 25% next year. These forecasts leave 888 shares looking dirt cheap. They command a sub-1 forward price-to-earnings growth (PEG) ratio of 0.2.

Expanding for growth

As a long-term investor I’m excited by 888’s aggressive expansion programme that could light a fire under earnings growth.

The firm’s in the process of acquiring William Hill, a move that will boost its size between three and four times current levels. It will also significantly bolster its position in Europe and gives 888 one of the most popular brands in the business.

The FTSE 250 firm also has excellent revenues opportunities in the US, a fast-growing market where the business has also been expanding to capitalise on loosening gambling laws.

Research suggests that the global online gambling market will enjoy compound annual growth of 11.7% between now and 2030. Growth in the US is expected to be even stronger in the period at 11.9%. I think internet gambling giant 888 is in great shape to capitalise on this trend.

A falling AIM share

Like 888 Holdings, Begbies Traynor Group (LSE: BEG) has also been extra active on the acquisition front in recent years.

Its commitment to M&A has seen the company significantly broaden its range of services and expand its geographical footprint. This in turn has led to a long record of robust annual earnings growth. And pleasingly, the AIM-quoted insolvency specialist is showing no signs of slowing down. Just last week it sealed the purchase of chartered surveyor Budworth Hardcastle.

A top stock for tough times

Begbies Traynor’s share price has risen strongly in the past four months. This is perhaps no surprise as demand for its insolvency services rises when economic conditions worsen. Yet it’s fallen back a tad more recently and so I’m thinking of jumping in.

Insolvency rates in the UK have ballooned. Latest government data showed a leap of almost 80% year-on-year in May to 1,817. The number is likely to grow still further as the UK economy likely enters a recession.

City analysts think Begbies Traynor’s earnings will grow 8% this financial year (to April 2023) and 3% next year. This leaves it trading on a forward price-to-earnings (P/E) ratio of 14.7 times. In my opinion this is a bargain given the company’s long track record of earnings increases and growing business opportunities.

This means a lot of top stocks are unfairly overlooked. There are plenty of top small-cap stocks I think could thrive, even as recessionary threats grow. Here are two I’m thinking of buying right now.

Residential Secure Income REIT

Earnings at Residential Secure Income REIT (LSE: RESI) are likely to remain rock-solid even as the economy sinks. Having a roof over our heads is one of life’s non-negotiable, whatever happens.

Owning property stocks is also a good idea during this period of high inflation. This is because the rents they can charge tend to increase along with broader prices.

Rents at Residential Secure Income could also rise spectacularly as homebuyer affordability comes under pressure, boosting demand for rental properties even further. Data from estate agent Hamptons shows that recent interest rate rises mean renting a property is now cheaper than buying. That’s despite average rents in the UK continuing to rise at double-digit percentages.

Hamptons estimates that each further 0.25% rise in the base rate will increase the cost of buying over renting by £41 a month too. Projections are based on a typical first-time buyer with a 10% deposit, it says.

Commercial landlords like Residential Secure Income are always vulnerable to possible changes in industry regulations. Profits could be hit if, say, new regulations drive up the cost of property maintenance.

However, it’s my opinion that the safe-haven qualities of this particular stock outweigh the risks of tighter regulations. I’d also buy it because of its chunky 5% dividend yield.

Begbies Traynor Group

Worsening economic conditions also make Begbies Traynor Group (LSE: BEG) an attractive stock to buy today.

Tragically, the number of businesses experiencing significant financial distress increases when times get tough. Latest data from accounting firm Mazars shows the number of corporate insolvencies rose by almost a third in the last three months, to around 6,000.

The rate at which companies are hitting the wall is accelerating sharply too. Mazars says that 1,817 filed for insolvency in May. This was up 79% year-on-year.

I expect trading at companies like Begbies Traynor to improve considerably as inflationary pressures rise. This particular small-cap is an insolvency practitioner and provider of other services to distressed companies.

Demand for its expertise is already soaring, boosted by the contribution of ongoing acquisition activity. Latest financials showed adjusted pre-tax profits up around 55% in the 12 months to April.

Of course, revenues at Begbies Traynor could dry up when economic conditions improve. But in these uncertain times I still think buying this safe-haven stock is a good idea to help protect my portfolio.

CVS Group

What it does: offers veterinary care services through its UK network of 500 surgeries.

Price: £17.38 per share

CVS Group (LSE: CVSG) is a healthcare stock I snapped up in early 2020. It’s one I’d been considering buying for some time as consumer spending on animalcare grew strongly. Soaring pet adoption rates during the Covid-19 crisis encouraged me to build my holdings in the business, too.

The CVS share price has been volatile more recently. And this means the decision to boost my holdings late year hasn’t paid off yet. Still, the vet care provider remains more expensive that it did back in February 2020. So I’m still up by the tune of around 15%.

I continue to believe that CVS will prove a lucrative stock for me to own over the long term, too. This is because pet adoption rates remain rock solid.

As Matt Britzman, equity analyst at Hargreaves Lansdown, has commented: “the UK pet market’s grown 4% per year on a compound basis over the past 5 years and continues to look strong as the pandemic fuelled surge in pet ownership doesn’t look to be going anywhere.”

A safe haven in tough times

I think CVS Group in particular is a good pet-themed stock to own at the current time as well. Animal owners might cut down on discretionary items like toys as the cost of living crisis worsens. But spending on their pets’ health is unlikely to be something they cut back on.

This explains why City analysts expect CVS to continue growing earnings in the short-to-medium term. They expect the company to follow an 8% improvement in annual earnings in the outgoing financial year (to June 2022) with a 6% rise next year.

I am concerned by the growing shortage of veterinary staff in UK. This threatens to push up costs for animalcare specialists like CVS. But on balance I think the potential rewards of owning this top growth stock outweigh the risks.

Redcentric

What it does: provides a range of IT services to businesses.

Price: 121.8p per share

Redcentric (LSE: RCN) is a growth stock I’m considering adding to my portfolio as remote working becomes the norm.

The number of people working away from the office famously boomed during the Covid-19 pandemic. And demand for a blend of home- and workplace-based employment to continue permanently is growing in strength.

According to Barnett Waddingham, some 84% of British businesses have now adopted a ‘hybrid’ working method. Dissatisfaction over flexible working practices was a major reason behind staff resignations over the past year, the consultancy said, illustrating the importance of remote working amongst modern workers.

This bodes well for firms like Redcentric, which can expect demand for their services to rise. This particular IT services business provides networks, security software, cloud platforms and communications systems, which allow workers to complete their tasks efficiently and safely.

Business is booming

Redcentric saw revenues edge 2% higher in the last financial year (to March 2022). Encouragingly, however, the company said that new sales orders “improved significantly” during the final half of the year versus the first six months.

City analysts think Redcentric’s earnings will rise 16% year-on-year in FY2023. This leaves the company trading on what I consider to be an undemanding forward price-to-earnings (P/E) ratio of 14.8 times.

Redcentric doesn’t have the financial clout of the IT industry’s big beasts like Microsoft, IBM and Oracle, to name just a few. It also doesn’t have the brand recognition of these global giants. But I still think it could deliver exceptional investor returns for me over the next decade as its market opportunities grow.

Begbies Traynor Group

What it does: provides a range of services to financially troubled businesses.

Price: 138p per share

I’m considering bulking up my exposure to counter-cyclical UK shares as the economy stalls. It’s a strategy that could limit the impact of worsening conditions on my portfolio.

One way I’m considering doing this is by investing in insolvency practitioner Begbies Traynor Group (LSE: BEG). This is a growth stock that supplies a broad spectrum of services for struggling companies like helping with debt restructuring, asset sales and contingency planning.

New research from accountancy firm BDO suggests a fresh storm is on the horizon for British companies. It says that “almost a fifth say record inflation and the cost of living crisis has or will have a worse impact on their business than Covid-19.”

This is, of course, extremely worrying given the huge number of companies that went to the wall during the pandemic. Indeed, insolvency rates are already rocketing in the UK, and there were 1,991 in April. That was more than double the number of insolvencies recorded a year earlier (925).

Expanding for growth

Begbies Traynor said last month that it expects revenues to have leapt 30% in the financial year to ApriI 2022. And it looks like sales should keep rising strongly over the short to medium term.

But I don’t buy UK shares based on what near-term returns I can expect to make. In the case of Begbies Traynor, I reckon I could make big money over the long term as it continues on its acquisition-led growth strategy.

M&A can throw up unexpected risks that can damage profits and shareholder returns. But so far the company’s successful approach to acquisitions has kept earnings growing solidly year after year. And City analysts are predicting further bottom-line growth of 8% and 3% for fiscal 2023 and 2024, too.

Today, Begbies Traynor trades on a forward P/E ratio of 14.4 times. I think this is a bargain considering the firm’s terrific pedigree of annual earnings growth.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Begbies Traynor Group 

What it does: Begbies Traynor provides financial services for companies in distress. The firm is a specialist in corporate insolvency. 

By Royston Wild. The outlook for the UK economy is getting gloomier as inflation accelerates. National output shrank in March, latest data shows, and recessionary risks are rising. It means that counter-cyclical share Begbies Traynor Group (LSE: BEG) could be a top stock for me to buy this June. 

A mix of economic deterioration and the withdrawal of government furlough support is driving corporate insolvencies through the roof. The cash crunch facing British business looks set to intensify, too, as lending conditions get tougher.  

A study from the Federation of Small Businesses shows that banks are “pulling up the drawbridge” to firms seeking capital. Indeed, just 19% of companies surveyed described the availability of credit as “good” in quarter one. This was the lowest figure since 2016. 

In this climate I think demand for Begbies Traynor’s financial services could soar. City analysts think the stock’s earnings will rise 10% in the 12 months to April 2023. I believe this estimate could be revised upwards as the fiscal year progresses. 

Royston Wild does not own shares in Begbies Traynor Group. 

XP Power

What it does: XP Power is a designer and manufacturer of power converters for the global electronics industry.

By Zaven Boyrazian. With Covid-19 creating plenty of disruptions for manufacturing businesses like XP Power (LSE:XPP), it’s not surprising to see the stock suffer by nearly 40% over the last 12 months. However, these issues are ultimately short term. Meanwhile, demand for the group’s products continues to climb, especially from semiconductor manufacturing companies.

Looking at the latest quarterly results, revenue grew by a meagre 8%, courtesy of the aforementioned disruptions. But the order book stands at a record £260m. And with a new manufacturing facility now under construction, the firm’s order capacity is set to expand considerably over the next few years.

In my opinion, this places XP Power in a favourable position to secure long-term growth. And that’s why, alongside the accolade of being my preferred stock for June, the recent tumble in share price looks like a great buying opportunity for my portfolio today.

Zaven Boyrazian does not own shares in XP Power.

Aviva

What it does: Aviva is a UK company offering a range of insurance and wealth management services

By Alan Oscroft: Aviva (LSE:AV) has been restructuring itself for several years, disposing of non-core businesses and cutting costs. As a result of that, it has had the cash to return a total of £4.75bn to shareholders, directly and via share buyback. The company now plans to pay progressive dividends yielding better than 7% this year and next.

Aviva is not out of the woods yet, after recording an earnings fall in 2021. The financial sector is also facing an uncertain outlook in today’s economic climate. But Q1 figures in May showed solid progress.

On balance, I think Aviva has all but turned the corner. But I don’t think the share price has caught up yet. Now Aviva has all but completed its capital return, investors can focus on future of the restructured company.

I’m hoping June could be the start of a renewed bull run. I’m holding, and might even buy more.

Alan Oscroft owns shares in Aviva.

Tritax Big Box REIT

What it does: Tritax Big Box REIT is a real estate investment trust that owns a portfolio of logistics warehouses.

By Edward Sheldon, CFA. Tritax Big Box REIT (LSE: BBOX) shares pulled back in late April (after e-commerce giant Amazon announced that it has a surplus of warehouse space) and I believe this has created a buying opportunity.

One reason I’m bullish here is that in the company’s recent first-quarter results, management advised that demand for new logistics space remains “very strong” and that the group is well-placed to capitalise on the high level of demand through its development pipeline. It added that it is handling inflation through active management of open market rent reviews, along with inflation-linked leases.

Another reason is that since the share price has fallen, eight company insiders, including the Chairman, have stepped up to buy stock. This indicates that those within the company expect the share price to rebound.

Now, BBOX does have a relatively high valuation. This adds some risk. If future results are disappointing, the stock could underperform.

Overall, however, I believe the long-term risk/reward proposition here is attractive enough to name the stock as my favourite for June.

Edward Sheldon owns shares in Tritax Big Box REIT and Amazon

Games Workshop

What it does: Games Workshop designs and manufactures miniatures and games. It sells these through various retail channels.

By Stephen Wright. Games Workshop (LSE: GAW) is a stock that I’d very much like to own in my portfolio. The company has a loyal and committed customer base, with good intellectual property rights protecting its business. It also has a balance sheet that instils confidence in me, having more cash than debt.

The company is in an interesting place at the moment. I think that high inflation and rising interest rates are likely to put pressure on businesses in this sector. But Games Workshop’s unique product should, in my view, see them through.

At the stock level, I’ll be looking to exploit any weakness in June to start building out a position. I think it’s important to be disciplined about overpaying, but I think there could be an opportunity here to acquire a great business at a reasonable price.

Stephen Wright does not own shares in Games Workshop

Abrdn

What it does: Abrdn is a global investment management company, managing a wide range of assets for its clients. 

By Michelle Freeman. It may seem counter-intuitive to pick Abrdn (LSE:ABDN) as my top stock for June. After all, its core business model is its fee-based investment offerings, opposite to the Motley Fool line of thinking. 

But you see, it’s not difficult to make money in a long bull market. However, a good strategy is priceless when it comes to navigating choppier investment waters. That’s why I think the recent run of doom and gloom news on investment markets will see a lot of retail investors willing to pay a little more for investment advice. 

With the share price remaining down over 25% year-to-date, I see plenty of long-term upside potential. That’s backed up by a majority of analysts holding buy targets above today’s price. 

And when you throw in that very tasty +7% dividend yield, it makes it a whole lot easier to stay the course through the ongoing market volatility.

Michelle Freeman does not own shares in Abrdn.

Associated British Foods 

What it does: ABF is the owner of retailer Primark and four food production businesses in grocery, sugar, ingredients and agriculture 

By G A Chester. Associated British Foods (LSE: ABF) is out of favour with the market. Indeed, you have to go back almost a decade to find the share price as low as its current level. 

Primark suffered during the pandemic, but the group remained profitable thanks to its food businesses enjoying strong demand. Primark has since recovered well, and food sales have continued to grow. 

However, like a lot of companies, ABF is now seeing significant inflationary pressures in raw materials, supply chains and energy. These costs will negatively impact the group’s profit margins. Notwithstanding the headwinds, management’s outlook for the year is for “significant progress in adjusted operating profit and adjusted earnings per share.” 

There’s a risk management’s expectations could prove over-optimistic, because the economic backdrop is so uncertain. Nevertheless, with the share price and valuation at multi-year lows, I think I’m looking at a rare opportunity to buy into a high-quality enterprise. 

G A Chester does not own shares in Associated British Foods 

Games Workshop

What it does: Games Workshop designs, manufactures, and sells fantasy miniatures and related products

By Paul Summers. Rather than move into cheaper but inferior value stocks at a time when investor interest in them might be peaking, I think the current market volatility offers me a wonderful opportunity to buy some of the UK’s best growth stocks at knock-down prices. One example is Games Workshop (LSE: GAW). 

As I type, shares are down over 30% year-to-date and almost 45% off their 52-week high. This brings the price-to-earnings ratio down to 18 – mightily attractive considering the high margins and massive returns on capital Games usually posts.

Sure, spending on hobbies will likely be reduced as the cost of living gallops higher. However, I reckon the sheer popularity of its products and loyalty of its customers means business should recover strongly once the clouds have passed. 

So long as I’m prepared for hold for more than a few months, building a position in this stock in June could prove lucrative.

Paul Summers does not own shares in Games Workshop

Associated British Foods

What it does: Associated British Foods is a highly diversified business. It is the owner of a number of leading brands including: Primark, Silver Spoon and Kingsmill. It also produces a number of food ingredients including sugar beet and flour.

By Andrew Mackie. Associated British Foods (LSE:ABF)’s share price is now trading at levels not seen since the stock market crash of March 2020. Here’s why it’s my top stock for June.

However, to my mind, the business is in a lot stronger position than during Covid. Yes, Primark has been forced to raise prices on a number of autumn items due to rising input costs. But all its stores are trading and revenue growth remains strong. Its no-frills brand will likely resonate well amongst increasingly cost-conscious consumers, particularly in the run up to the holiday season.

But ABF is a lot more than just Primark. The business continues to invest heavily in its grocery brands. Twinings, for example, recently enhanced its offering in the lucrative wellbeing teas market.

I am also excited about its agriculture division which produces animal feeds for pig, poultry and dairy. As food security becomes an increasingly important consideration, yield sustainability and environmentally-friendly practices will favour innovative businesses such as ABF.

Andrew Mackie owns shares in Associated British Foods.

JD Sports Fashion

What it does: JD Sports Fashion is a retail chain specialising in sports, fashion and outdoors brands, with a large digital commerce footprint.

By Christopher Ruane. The retailer JD Sports Fashion (LSE: JD) is known for low prices — but lately that has been true for the company’s shares as well as its shoes.

Over the past 12 months the JD Sports share price has tumbled 35%. But I think that fall is overdone and see a buying opportunity for my portfolio. The company expects to report its annual results in June. I reckon that could lead investors to reconsider the share price.

JD has said that headline profits before tax and exceptional items for last year are expected to come in at £940m. It thinks that 2023 will be at least as good, although a worldwide shortage of certain types of footwear is one risk to revenues and profits. With a market capitalisation of £6.2bn, I think the company looks cheap given its strong performance and attractive business outlook, making it my top stock for June.

Christopher Ruane owns shares in JD Sports.

Anglo American

What it does: Anglo American is a mining firm operating across the globe. It mines diamonds and platinum group metals (PGMs), together with copper, iron ore, and nickel.

By Andrew Woods. Anglo American (LSE:AAL) posted bumper pre-tax profits in 2021 of $17.6bn, up from $5.4bn the previous year. The company has recently been benefiting from historically high metal prices. These higher prices have been largely caused by the reopening of economies after the pandemic. Furthermore, the situation in Ukraine has heightened supply concerns and the overall trend of rising metal prices could be here to stay for a while yet.

The firm also recently signed a memorandum of understanding with EDF Renewables. This will develop solutions to make Anglo American’s South Africa operations run on 100% renewable energy. This is part of an effort by the business to make its mining operations more environmentally friendly.

While iron ore production declined for the first three months of 2022, the diversity of Anglo American’s business may continue to allow it to reap the benefits of surging demand for base metals, not to mention rising revenue from growing diamond sales in the US. 

Andrew Woods does not own shares in Anglo American

Computacenter

What it does: Computacenter supplies IT hardware and services to large corporate and public sector organisations.

By Roland Head. FTSE 250 group Computacenter (LSE: CCC) has a long history of steady growth. Sales have doubled to £6.7bn since 2012, while Computacenter’s annual profit has tripled to £185m over the same period.

Demand surged through the pandemic due to work-from-home and ecommerce demand. Although growth has eased in 2022, Computacenter management still expect to report “a year of further progress”. This tells me that another increase in annual profits is expected.

The main risk I can see is that an economic slowdown in 2022/23 could hit demand and cause Computacenter to miss a year or two of growth. However, I think the company’s share price already reflects a cautious view.

Computacenter is highly profitable and ended last year with net cash of £95m. The stock’s forecast price/earnings ratio of 15 times is at the lower end of its historical range. I think the shares look decent value at this level.

Roland Head does not own shares in Computacenter.

Burberry

What it does: Burberry is a British luxury fashion brand that design and distributes ready-to-wear items. These include trench coats, leather goods, footwear, fashion accessories, eyewear, fragrances, and cosmetics.

By John Choong. Having seen a 15% decline this year, the Burberry (LSE:BRBY) share price could be on the verge of a rebound this summer. As a luxury brand, many of Burberry’s goods hedge against inflation. This was evident in its latest earnings results, as its profitability hit an eight-year high. The company makes the bulk of its revenue from China, and it’s been capitalising on the uptake in luxury consumer spending within the region. In fact, the British firm opened a flagship store in Shanghai recently.

Although I expect the next trading update to post bitter numbers as a result of the recent lockdown in Shanghai, I remain optimistic for the FTSE 100 firm’s long-term prospects. I believe that sales figures will rebound along with its share price once restrictions come to an end, and that a sour trading update for Q1 could present a buying opportunity for the stock in June.

John Choong does not own shares in Burberry.