Instead, I am spending my time trying to find investments that can perform well in any market environment. And there is one investment trust I have been buying recently. I believe it has all of the qualities required to weather a stock market crash and potentially even emerge stronger on the other side. 

Preserving wealth

Capital Gearing Trust (LSE: CGT) has two main aims. To preserve shareholders real wealth and achieve absolute total returns over the medium to long term. 

It has an excellent track record. The trust has achieved an average annual return of around 8% over the past couple of decades, with much less volatility than the rest of the market.

Of course, investors should never use past performance to guide future potential. Nevertheless, I think this track record shows the investment trust has achieved what it set out to do, proving that management has shareholders’ best interest in mind. 

The investment trust has relatively little exposure to the equity markets. Around 17% of the portfolio was invested in equities at the end of December, with a further 18% invested in property stocks and other property assets.

Index-linked government bonds accounted for 34% of assets, and the investment trust also owned a small position in gold. 

I have been buying shares in the investment trust because I believe this diversified approach will protect my portfolio in the event of a stock market crash.

Investment trust risks

There are a couple of negatives to using this approach. The firm charges an annual management fee of around 0.9%, including all costs, for a start. If I managed a portfolio of equities by myself, the cost would be minimal.

At the same time, the trust’s exposure to bonds and property suggests it will underperform some sections of the equity market, which have the potential to achieve higher returns in the long run. For example, a portfolio of property assets may underperform a high-growth technology business with market-leading profit margins. 

Crash protection

Still, I am not buying this investment trust to build exposure to fast-growing sectors. I am buying the shares to protect my portfolio from a stock market crash.

And I think the company can do just that. Its defensive asset allocation allows me to build exposure to assets such as preference shares. These may not be accessible to the average investor. The trust also has significant international exposure.

The second-largest individual holding in the portfolio is Vonovia, Germany’s leading nationwide residential real estate company. 

Considering this diversification, I am more than happy to pay the extra charge for investing in the market through Capital Gearing. 

With this in mind, here are my top growth, income and protection picks right now. I’d be happy to buy these three stocks for a diversified portfolio.

My pet growth stock

I think veterinary services provider CVS Group (LSE: CVSG) is a great dip-buy opportunity for me. The company issued a trading update today for its financial year ended 30 June.

The company said: “Continued trading momentum has delivered strong revenue growth.” As a result, it expects to report earnings marginally ahead of market expectations.

The shares are trading on a price-to-earnings (P/E) ratio of 33. And management said: “We look forward to continuing our growth trajectory as we head into the new financial year… We are also well placed to pursue further targeted acquisitions.”

Identifying and integrating acquisitions is part of CVS growth strategy, but comes with risk. There’s always the possibility of a slip-up that could harm my investment. However, CVS has done well on acquisitions so far.

My top UK stock for income

The yields on many dividend stocks have just nudged a bit higher, due to the market drop. As last year’s dividend rout reminded us, payouts are never guaranteed. And the highest-yielding stocks in the most cyclical industries are generally the most vulnerable to cuts.

A high-yield stock in a non-cyclical industry that stands out for me right now is British American Tobacco (LSE: BATS). The running yield is a juicy 7.8%.

In a trading update last month, the company said: “The momentum across the business is strong.” Management upgraded its revenue growth forecast to above 5% from its previous guidance of 3-5%.

Longer-term, regulation is a key risk for BATS. This could threaten the sustainability of the dividend. However, the company is growing its reduced-risk products at pace. And with “a clear pathway to New Category profitability by 2025,” I’m optimistic about the dividend.

My protection pick

Capital Gearing Trust (LSE: CGT) is my top UK stock for some protection in the event of a market crash. This stock hasn’t actually been hit by the recent sell-off, but is one I’d be happy to buy at any time.

Since 2000, shareholders have enjoyed an annualised return of over 8% — more than double that of the MSCI UK index. Furthermore, CGT’s maximum peak-to-trough fall during the period has been just 9%, compared with the index’s biggest crash of over 40%.

Its performance has been down to owning diverse assets. The table below shows its current portfolio breakdown, based on its latest monthly factsheet.

Past performance isn’t always a good guide to future returns. But I’d expect CGT’s current portfolio to provide some protection against a stock market crash. Of course, if shares fly rapidly north, I wouldn’t expect it to do as well as a 100% equities portfolio.

Today, I’m going to discuss four things. First, why I picked CGT. Second, how the company handled what has been one of the most extraordinary years. Third, how its shares have performed. And finally, whether I’d buy the stock for 2021.

Why I picked CGT as my top UK share

Here’s what I wrote in the article this time last year: “I’m making [CGT] my top buy for 2020 not because I’d expect it to make the biggest gains if we have a raging bull market. It won’t. Not with little more than 30% exposure to equities, and substantial holdings of cash and lower-risk assets, such as index-linked government bonds. However, this positioning offers relative downside protection — as well as the potential to pick up equities at dirt-cheap prices — in the event of a bear market. As such, I see Capital Gearing, which has a long history of steady, lower-risk returns, as a top buy for whatever 2020 brings.”

I can claim no prescience of the Covid-19 pandemic. All I knew was that, after a record bull run in equity markets driven by a decade of extraordinary asset-inflating low interest rates and money-printing, there was an elevated risk we were looking at a bubble in search of a pin. And one thing we know from history is that a bubble will invariably find one — typically in an unexpected quarter.

In picking CGT as my top UK share for 2020, I was merely being mindful of the great Warren Buffett’s advice to “be fearful when others are greedy.”

Dirt-cheap prices

As I mentioned, CGT came into 2020 with little more than 30% exposure to equities. It had sold or trimmed a fair number of holdings on valuation grounds. I noted its positioning gave it the potential to pick up equities at dirt-cheap prices in the event of a bear market. And this is what it did. As of 30 November, equities accounted for 48% of its portfolio.

I’d say CGT has done a very good job of navigating the extraordinary turmoil of 2020. And the performance of its share price reflects this.

Smashed the wider market

At the time of our Top UK shares for 2020 article, the CGT share price was 4,310p. It bottomed at 3,810p (down 12%) in March. This compared with a crash of 32% for the FTSE All-Share index.

Today, the CGT share price is 4,660p, up 8% since I tipped it for 2020. A decent performance in absolute terms (in line with its annualised return over two decades), and a very strong performance against the index, which is down 8%.

My top UK share for 2021?

I’ve always maintained CGT is a good stock for adding some defensive robustness to a portfolio. Or for investors wanting exposure to the stock market without going ‘all-in’. But is CGT my top UK share for 2021?

Markets have rallied strongly from the crash, but my concerns about interest rates, money-printing, and corporate debt remain. As such, I’d be happy to buy asset-prices-conscious CGT today, even though it’s not my top UK share for 2021. I think there are a number of other stocks — particularly in the UK market — currently trading at attractive valuations.

Harshil Patel: Fresnillo 

Gold and silver prices have rocketed this year and could be set to march higher. Covid-19 related lockdowns, weakened confidence, and macro-economic uncertainty sent investors to safe-havens like gold and silver.  

Rather than buying gold and silver, I’d buy shares in FTSE 100 miner Fresnillo (LSE:FRES) instead. As the world’s largest producer of silver and Mexico’s largest gold producer, Fresnillo holds a dominant position in this space.  

With high-quality assets and a healthy balance sheet, I’d say this highly rated miner is well placed to benefit from further rises in gold and silver prices. 

Harshil Patel does not own shares in Fresnillo.

Rachael FitzGerald-Finch: Anpario

Bad times make good opportunities for investors to keep supporting strong businesses. One such business in my view is Anpario (LSE:ANP), an animal feeds additives producer.

Over the last 10 years, the share price has steadily grown over 350%, reflecting the firm’s strong underlying fundamentals. Notably, it hasn’t been too affected by the coronavirus pandemic either.

Currently trading on a P/E of 22, it maybe more expensive than similar firms but in my view, this reflects the quality of the stock.

Currently boasting a market-to-book ratio of 2.6, and a 2% dividend yield, I believe this is a top stock for October.     

Rachael FitzGerald-Finch has no shares in Anpario.

Manika Premsingh: Anglo American

FTSE 100 mining giant Anglo American (LSE: AAL) is due for a trading update in October. This is the first such in the post-lockdown period. So far, positive news looks likely. AAL’s diamond sales have improved. It also expected its platinum group metals, copper and iron ore segments to be better placed as global economic recovery ensued, in its last financial update. Deutsche Bank has recently lifted its share price target on the stock too. However, economic outcomes are still uncertain, especially since the pandemic is still somewhat out of control. I think it’s a good idea to keep an eye out for AAL’s next update and take an investing call on it accordingly.

Manika Premsingh has no position in Anglo American.

Andy Ross: Tesco

Shares in the grocer Tesco (LSE: TSCO) could do well in a volatile market which we might well see in October. The end of September has seen markets gyrate in response to the latest fears over Covid-19, this could well be a theme during this month as well.

When the market was struggling back in March defensive businesses like Tesco were among the better performers. The shares still seem cheap, pay a dividend and demand for food won’t go away. There’s also a new CEO. 

I expect this top stock to keep doing well in October for these reasons.

Andy Ross does not own shares in Tesco.

Anna Sokolidou: Unilever

Unilever (LSE:ULVR) shares have almost recovered from the spring market crash. The company sells necessities – food and personal care items.

Although Unilever is one of the industry’s leaders, it’s not completely immune to macroeconomic challenges. But the good thing is that Unilever operates in many countries. So, its risks are moderate because they are spread between different regions.

The company’s investment grade credit rating is a big plus. too. Unilever stock is trading at a price-to-earnings ratio of just above 20.

Anna Sokolidou does not own Unilever shares.

Rupert Hargreaves: Pets At Home

Pets At Home (LSE: PETS) has seen the demand for its services surge this year. In its latest trading update, the company reported double-digit like-for-like sales growth in the eight weeks to 10 September.

It looks as if this trend is here to stay. Demand for pets has jumped in 2020. As the largest pet-focused retailer in the country, Pets will be the first port of call for many consumers who’re looking for products for their furry friends.

Indeed, Pets is so optimistic about the future, it’s looking to invest £48m in a new giant distribution centre. Therefore, now may be a good time to buy a share of this growing business at an attractive price.

Rupert Hargreaves does not own shares in Pets At Home.

Roland Head: Ferrexpo

Iron ore pellet producer Ferrexpo (LSE: FXPO) currently trades on just 4.5 times 2021 forecast earnings. The stock also offers a forecast dividend yield of 7.3% for next year.

As far as I can see this low valuation has nothing to do with the business itself, which has some of the lowest costs in the industry and good economies of scale.

Although there’s some risk of a slowdown in demand next year, I think Ferrexpo’s valuation is being held back by allegations relating to its Ukrainian controlling shareholder. In my view, this risk could be worth taking. I think Ferrexpo shares are worth more.

Roland Head does not own shares in Ferrexpo.

Paul Summers: Begbies Traynor

Rishi Sunak’s new Job Support Scheme might help ease the pain but I suspect a lot of UK businesses could still fold over the next few months. This is why, purely from an investment perspective, I think insolvency firm Begbies Traynor (LSE: BEG) should be a top stock for October. 

A valuation of just under 15 times forecast earnings looks attractive when you consider the amount of work that may land on the small-cap’s doorstep. Positive half-year numbers in December could be the catalyst for the share price to move higher. 

Begbies also continues to pay dividends. At the time of writing, a 3p per share payout in FY21 gives a yield of 3.5%.

Paul Summers has no position in Begbies Traynor.

G A Chester: Capital Gearing Trust 

I named Capital Gearing Trust (LSE: CGT) my top buy for 2020. I felt its long history of steady, low-downside returns, made it a good bet for whatever the year would bring. It’s performed well so far, and remains my pick of choice as we head into the final quarter. 

Market volatility is likely to continue for the foreseeable future, what with Covid-19, the US election, looming Brexit, and the uncertain outlook for the global economy. Capital Gearing’s holdings of cash, bonds and gold alongside its current 42% exposure to equities make it a good pick for an unpredictable world, in my view. 

G A Chester has no position in Capital Gearing Trust.

Stuart Blair: Aviva

I think Aviva (LSE: AV) is one of the best stocks to buy in October. Last month, the new CEO, Amanda Blanc, demonstrated a willingness to make major changes to the business. This included selling a majority shareholding of its Singapore Arm for £1.6bn, in a shrewd move that should allow the insurer to focus on Britain, Ireland and Canada.

Blanc also bought over 300,000 shares at a price of just over 300p each. This proves that Blanc is optimistic for a recovery, and with the Aviva shares trading at a 34% discount year-to-date, so am I.

Stuart Blair owns shares in Aviva.

Tom Rodgers: CMC Markets

CMC Markets (LSE:CMCX) has had an incredible 2020, and there was more good news for the FTSE 250 spreadbetting and share trading platform in September, when it announced it would beat income expectations for the 2021 full year.

Existing clients are trading more, and CMC is growing fast by attracting new users, while retention has been “particularly strong” above 80%, bosses say. I see this trend continuing as traders seek to exploit volatile markets.  At a P/E of just 7 and boasting a healthy 4.62% dividend, these shares are still super-cheap for the value on offer. 

Tom Rodgers does not own shares in CMC Markets.

Edward Sheldon: Diageo

My top British stock for October is Diageo (LSE: DGE). It’s a leading multinational alcoholic beverages company that owns a portfolio of well-known spirits brands.

Diageo shares have fallen significantly this year. That’s understandable, as Covid-19 is presenting the company with a number of challenges. I think this share price weakness has created a real opportunity for long-term investors, however. I remain convinced that, eventually, the stock will bounce back.

It’s worth pointing out that in September, Diageo’s CFO spent around $250,000 on company stock. This is a good sign – it suggests that the insider sees the stock as undervalued right now. This insider purchase reinforces my view that it’s a great time to be building a position in Diageo.

Edward Sheldon owns shares in Diageo.

Royston Wild: Unilever

October could prove to be another tough month for investor confidence. With waves of new Covid-19 infections hitting all parts of the globe, the US Presidential election heating up, and the Brexit process entering a crucial stage now could be a good time to buy some good old-fashioned safe-haven stocks.

On the top of my list would be Unilever. This FTSE 100 share has exceptional defensive qualities thanks to its broad geographical footprint, its wide range of products, and the exceptional brand power of these goods. This is why its share price has recovered strongly in recent months and is up 10% since the start of 2020 despite the troubling economic outlook.

One final thing: Unilever is set to release third-quarter financials on October 22. The consumer goods colossus smashed broker forecasts with its half-year release in July. Another stunning release later this month could give the share price a further dose of rocket fuel.

Royston Wild owns shares in Unilever.

Kirsteen Mackay: AstraZeneca 

Pharmaceuticals giant AstraZeneca (LSE:AZN) is a strong company with a portfolio of credible medicines. Its high price-to-earnings ratio may put you off its share price as it looks expensive, but I think long term this is a good company that will stick around.

It offers a 2.4% dividend yield and earnings per share are 79p. With rumours of another lockdown ramping up and Covid-19 panic rising, I think AstraZeneca stock will continue to climb in October as it continues to forge ahead in the development of a vaccine with Oxford University.  

Kirsteen does not own shares in AstraZeneca.

Peter Spiller has managed Capital Gearing since 1982. His views on equity markets, which can be found in the trust’s recent annual report, always make for interesting reading. Not least because he has a certain objectivity that comes from investing in other assets alongside equities. His latest comments add to my conviction that Capital Gearing remains a top buy today.

Performance to date of my top UK share for 2020

During the Covid-19 crash of February/March, Capital Gearing’s net asset value (NAV) fell 9.9%, while the UK equity market plunged 32.8%. While the market has since made a partial recovery, it’s nevertheless down 17% for the year to date. Capital Gearing’s recovery has taken it to a gain of 1%.

As such, over this relatively short but tumultuous period, the trust has continued its long-term record of impressive downside protection and market outperformance.

That long-term record is depicted in a chart on the third page of the annual report. The total returns of Capital Gearing’s NAV and MSCI UK Index, along with RPI inflation, are all rebased to a value of 100 at the start of the century. At the trust’s financial year-end (5 April), the value of the MSCI index had grown to – reading off the chart – around 165, and RPI inflation to around 175. Capital Gearing’s value had grown to something above 450.

Spiller speaks

The investment manager’s commentary in the annual report is worth reading in full. Briefly, having reduced its equity holdings on valuation grounds in the months before the crash, Capital Gearing was a buyer at the “interesting levels” during it. At 5 April, the trust’s risk assets at 36%, were “close to decade high weightings”.

Spiller said: “If equity prices had remained at mid-March levels for longer, our equity holdings would have grown even further”. However, due to the market recovery on the back of massive government intervention, “for the time being, we continue to proceed with caution … We will leave it to others to exploit the opportunities of a reflating asset price bubble, with all the risks that entails”.

Capital Gearing is still my top UK share for 2020

I wrote a number of times last year about how, after a 10-year bull market, I was generally wary of low-valued stocks with high cyclical risk, on one hand, and, on the other, many quality growth stocks I felt had become too richly valued.

Like Spiller, I saw abundant opportunities during the spring crash. Indeed, I wrote about many of my favoured stocks at the time. But also like Spiller, I’m now somewhat cautious after the speed and size of the market recovery.

At current valuations, I think it’s getting tough to find a stronger risk/reward proposition than Capital Gearing. As such, it remains my top UK share for 2020 whatever the rest of the year brings.

Royston Wild: Centamin

Share indices might be off March’s multi-year troughs but the going is tough. Key economic gauges continue to shock, suggesting that while the bottom has already been plumbed we should expect a long (and possibly bumpy) recovery in global GDP.

It could well pay to remain invested in safe-haven stocks like Centamin (LSE: CEY), then. Investors in the gold mining giant would have greeted the yellow metal’s rise to new seven-year peaks above $1,750 per ounce in May. The hair-raising rhetoric that has emerged between the US and China in recent weeks has helped the hard currency to keep rising and should continue driving prices, too.

At current prices Centamin deals on a forward P/E ratio of 14 times. It carries a bulky 4% corresponding dividend yield, too. I reckon it’s a top British stock pick for June.

Royston Wild does not own shares in Centamin.

Rupert Hargreaves: Unilever

The global economy is reeling from the coronavirus crisis, and right now, it’s difficult to tell which companies will survive. With that in mind, I think Unilever (LSE: ULVR) is an excellent investment for the current market. 

The company is one of the world’s largest consumer goods producers. It owns a range of multi-billion-pound brands, which have a substantial consumer following. 

Demand for these products may dip over the next few weeks, but should grow over the long term. A dividend yield of 3% also adds to the stock’s appeal.

The recent market sell-off could be an excellent opportunity to buy this global consumer goods champion at a discount price.

Rupert Hargreaves owns shares in Unilever.

Matthew Dumigan: Royal Dutch Shell

The Royal Dutch Shell (LSE: RDSB) share price has taken beating in the stock market crash thanks to a collapse in oil prices and the outbreak of Covid-19.

However, the industry titan looks well-placed to withstand the pressure of plunging profits over a prolonged period. Moreover, once the world economy recovers, demand for oil should swiftly return to pre-pandemic levels. 

Looking ahead, substantial investment into renewables and clean energy could deliver attractive returns to investors. 

Of course, holding for the long term is necessary. But with such a cheap valuation, I find it difficult not to classify shares in Shell as undervalued.

Matthew Dumigan owns shares in Royal Dutch Shell.

Kevin Godbold: Bunzl

FTSE 100 specialist international distribution and services company Bunzl (LSE: BNZL) posted some decent first-quarter figures at the beginning of April. Revenue rose, and underlying trading had been robust in the areas of safety, grocery, healthcare, cleaning and hygiene. However, Covid-19 has been negatively affecting the roughly 35% of revenue from the foodservice and retail sectors.

Meanwhile, governments have “increasingly” designated Bunzl as a critical supplier, enabling the firm to play an “important” role in the coronavirus crisis. I reckon the company is well placed to thrive in a world featuring the virus, and this top British stock could continue its recovery during June as lockdowns ease.

Kevin Godbold does not hold shares in Bunzl.

Anna Sokolidou: Polymetal

Polymetal International (LSE:POLY), the second-largest gold producer in Russia, has been steadily growing its sales revenue and profits for several years.

The Covid-19 crisis will continue to have a negative effect on many countries’ economic indicators. This will force many central banks to keep the interest rates next to zero. This, in turn, will put upward pressure on gold prices.

84% of Polymetal’s revenues come from selling the yellow metal. So, the correlation between gold and Polymetal’s shares is really strong.

However, gold itself does not pay any dividends or interest, whereas POLY yields about 4% in dividends.

Anna Sokolidou has no position in Polymetal.

Kirsteen Mackay: Auto Trader

I think the Auto Trader (LSE:AUTO) share price will increase in June as UK lockdown restrictions are eased. As car showrooms reopen, they will get back to paying to advertise on Auto Trader and as people get back to work, they will return to buying and selling vehicles. Auto Trader’s revenues are linked to the number of cars being advertised on its website.

Its price-to-earnings ratio is 25 and earnings per share are 21p. It has been hurt by the lockdown and offered free listings to keep big advertisers on board and to give customers at home plenty to browse. I think the second-hand car dealing market will increase as the country slides into recession.

Kirsteen does not own shares in Auto Trader.

Edward Sheldon: Computacenter

My top British stock for June is Computacenter (LSE: CCC). It’s a leading provider of technology solutions to businesses and public sector organisations.

I expect Computacenter to benefit from Covid-19 disruption. While digital transformation has been on the agenda for many businesses for years now, the disruption we have experienced recently is likely to push them to embrace it wholeheartedly. Already, the FTSE 250 company appears to be benefiting. On 15 May, the group said that the first half of 2020 will be “considerably ahead” of the same period of last year.

CCC shares currently trade at a very reasonable valuation. I believe now is a good time to be buying.

Edward Sheldon has no position in any shares mentioned.

Jonathan Smith: IG Group

Despite the broader FTSE 250 index being down for the year, IG Group (LSE: IGG) has seen a share price rally of 12.4% over the same period. The retail stockbroker and spread-betting firm makes higher revenue during volatile times due to increased client activity.

In a April trading update, the firm announced 22,500 new accounts had been opened in Q2 already, compared to 36,000 in the previous three quarters.

If existing clients are trading more and a large number of new clients are coming onboard, then it is only a matter of time before we see a spike in revenue and profits.

Jonathan Smith does not own shares of IG Group.

Tezcan Gecgil: Marston’s

My top choice for June is pub operator Marston’s (LSE: MARS). It is currently the UK’s largest brewing business, with six breweries and eleven distribution centres. It also has 1,400 pubs, restaurants, cocktail bars and inns.

In late May the share price skyrocketed. Management announced that the group will merge the brewing business with Carlsberg UK to form Carlsberg Marston’s Brewing Company. Investors were delighted.

Needless to say, the hospitality trade, including pubs, has suffered greatly since the lockdown that began in March. And that decline in business has been reflected in the share price. Despite last week’s run up in price, year-to-date, MARS shares are down close to 50%.

The industry is hopeful as of July most pubs will be able to welcome guests again. And such grand opening can only help support the stock.

I’d buy the dips.

Tezcan Gecgil does not own shares in Marston’s.

Tom Rodgers: Dart Group

With air bridges likely opening between the UK, Portugal, Greece and Spain, all eyes are now turning towards a recovery in UK travel shares.

The AIM-listed airline operator Dart Group (LSE: DTG) owns Jet2 and its main routes are to Europe and the Mediterranean. Dart is bound to get a boost pent-up travel demand.

It has a P/E ratio of just 7 and is highly profitable: bosses said full-year 2020 profits would be 49% ahead of 2019.

There’s also plenty of room to rebound: its share price gained 119% in 2019 but now sits at 63% cheaper than pre-Covid.

Tom Rodgers currently has no position in Dart Group.

Roland Head: Royal Mail

It’s been a difficult year for Royal Mail (LSE: RMG), but I think the postal operator’s shares now trade at a level that offers serious value for patient investors.

The recent departure of chief executive Rico Back suggests a more dramatic shake-up of the group’s operations is now likely. Changes are needed to accelerate the shift from letters to parcels, but I believe that with new leadership the business should rise to this challenge.

In the meantime, I think shareholders can take comfort from the group’s £3.1bn property portfolio — nearly twice its £1.8bn market cap. I reckon June is the time to buy this top British stock.

Roland Head does not own shares in Royal Mail.

Andy Ross: Reckitt Benckiser

Shares in Reckitt Benckiser (LSE: RB), owner of cleaning products like Dettol and health products such as Nurofen, have momentum. The shares, over just the last month, are up over 10%. I expect this momentum is being driven by investor demand for companies that will benefit from Covid-19 – which, as an FCMG company focusing on health and hygiene, Reckitt Benckiser surely will.

That coupled with the potential for dividend growth, at a time when higher-yielding shares are cutting investor payouts, makes the shares attractive.

There’s a risk the rapid increase in the share price means there could be a correction. Though often, momentum can be maintained and that’s what I expect to happen in June.

Andy Ross owns shares in Reckitt Benckiser.

G A Chester: Capital Gearing Trust

Capital Gearing Trust (LSE: CGT) remains my top buy for balancing near-term risk and long-term reward. Results last week for the year ended 5 April showed a 0.1% increase in NAV per share versus a 24.8% fall in the MSCI UK Index. In the spring market crash, the NAV suffered a maximum decline of 9.9% between 20 February and 19 March, while the UK equity market plunged 32.8%.

The trust’s defensive positioning, with a mix of equities and lower-risk assets, means it should perform relatively well in the event of further market stress. Meanwhile, its 8%-a-year return since 2000 is a not-to-be-sniffed at long-term performance.

G A Chester has no position in Capital Gearing Trust.

Peter Stephens: Reckitt Benckiser

Reckitt Benckiser’s (LSE: RB) recent trading update highlighted the progress it is making against key long-term objectives.

For example, it is investing in new technology to access e-commerce growth, while seeking to position its portfolio to capitalise on long-term growth trends such as an ageing world population.

The company’s stock price has moved higher this year, which means that it trades at a premium to many of its index peers. However, its recent sales growth and diversity could make it an attractive long-term buy during an uncertain period for the world economy.

Peter Stephens owns shares in Reckitt Benckiser.

Manika Premsingh: Burberry Group

FTSE 100 luxury fashion brand and retailer Burberry (LSE: BRBY) has been hit hard by Covid-19 and the stock market crash. Its recently released financials show a fall in revenue. But it continues to remain profitable.

With China on the mend, it could have somewhat better times in store during the second half of the year. Even though luxury spending can take a hit as the global recession sets in, it’s well-established brands like BRBY that should be able to weather it. Its share price has already risen 35% since March 23, when the FTSE 100 touched its bottom. I think it’s a top British stock for June.

Manika owns shares of Burberry Group

Paul Summers: Codemasters Group

The recovery in markets has been remarkable but I remain cautious, particularly as we’re getting closer to when companies will be required to provide actual numbers on just how bad trading has been. To mitigate this risk, my pick is video game developer and lockdown beneficiary Codemasters Group (LSE: CDM). 

While there’s no guarantee that it won’t fall along with everything else in the event of a second market crash, the mid-cap is already trading at a discount to industry peers. For 17 times forecast earnings, new buyers will get a company with no debt, lots of cash and an eagerly anticipated new game coming in August (Fast & Furious Crossroads). All this before even considering the great growth prospects for gaming in general.

Paul Summers has no position in Codemasters Group.

Edward Sheldon: Rightmove

My best British share for May is property website company Rightmove (LSE: RMV). The FTSE 100 stock has fallen a long way in the recent stock market crash, and at the time of writing is 34% below its 52-week high.

Of course, in the short-term, Rightmove’s profits are going to take a big hit as a result of coronavirus disruption. According to property consultancy Knight Frank, over 500,000 UK home sales could be abandoned this year.

However, the long-term growth story remains attractive, in my opinion. As the market leader in the property website space, the company is well-positioned for growth in a world that is becoming increasingly digital.

Edward Sheldon owns shares in Rightmove.

Rupert Hargreaves: Boohoo Group

It’s only business as usual for a handful of British shares right now. One of those companies is online clothing retailer Boohoo (LSE: BOO). 

According to Boohoo’s latest trading update, business is booming. What’s more, the firm has plenty of cash in the bank to keep the lights on through this turbulent period.

Boohoo’s strengths will allow management to take advantage of any opportunities that come the company’s way. Indeed, management has already declared that the firm is looking for acquisition targets in the market.

This suggests that Boohoo can weather the crisis and come out stronger on the other side. As such, now could be a good time for investors to buy into this UK fashion success story.

Rupert Hargreaves does not own shares in Boohoo.

Tom Rodgers: Team17

One of the sectors to profit most from a UK-wide lockdown is video gaming. And Team17 (LSE: TM17) is the best of the field, in my opinion. Look no further than record profits up 49% from 2019 to £29.5m, improved margins from the shift away from physical game copies to digital downloads, no debt, and sales flying up 44% to £61.8m.

CEO Debbie Bestwick is an industry pioneer, and has added several significant non-exec directors to drive the businesses forward faster, including Softcat chair Martin Hellawell, Plus500 chair Penny Judd and ex-Ladbrokes chief exec Chris Bell. It’s my top pick for May 2020.

Tom Rodgers owns shares in Team17.

Matthew Dumigan: Taylor Wimpey

Taylor Wimpey‘s(LSE: TW) share price took a beating in the stock market crash and still comes in around 30% down on mid-February highs.

However, the leading British house-builder has recently confirmed that it will commence a phased return to construction in May. Moreover, the company reports that orders for new homes are rising, with prices comparable to those prior to the lockdown.

While the long-term outlook for the UK property market remains favourable, with low interest rates and a housing shortage, I’d buy bargain shares in Taylor Wimpey this May, expecting attractive future returns.

Matthew Dumigan does not own shares in Taylor Wimpey.

Tezcan Gecgil: Cranswick

My best British share for May is pork-to-poultry food producer Cranswick (LSE: CWK).  The group also has increasing non-meat activities and a booming export business.

And what a performer this FTSE 250 member has been. Year-to-date it is up over 10%. But that number would tell only half the story. If you had invested £1,000 into CWK stock in late April 2015, you would now have about £2,620.

And that juicy return does not include the annual dividend or the reinvestment of that passive income. The current yield stands at 1.5%.

Although the forward P/E of 24.6 is a bit on the expensive side, the P/S ratio of 1.3 gives me confidence that the price may continue to sizzle. I’d buy the dips.

Tezcan Gecgil does not own shares in Cranswick.

Andy Ross: Admiral

In line with what I said this time last month, I’m sticking with defensive, value British shares in this uncertain market. One example is Admiral (LSE: ADM) which as an insurer has a degree of protection for its earnings.

The group hit the headlines recently, announcing a £25 refund to its motor insurance customers. The £110m cost might not seem ideal for investors but it’s part of the group’s positive response to Covid-19 and I think shows the group cares about customers. The insurer has been growing profits and the dividend and I think that makes it a good investment, especially in the current environment.

Andy Ross owns shares in Admiral.

Kevin Godbold: Smith & Nephew

Global medical technology stock Smith & Nephew (LSE: SN) trades around 20% below its February peak as I write. Yet it bounced back from its coronavirus low in mid-March and has been consolidating for some time.

At the end of March, the company revealed many operations continue. Albeit after the directors made the usual precautions and adaptations for the pandemic

Those factors combine with the firm’s long history of growing cash flow to make the share appealing to me. I reckon it has a decent chance of performing well through May and beyond as lock-downs begin to unwind around the world.

Kevin Godbold does not own shares in Smith & Nephew.

Rachael FitzGerald-Finch: Tate &Lyle

A likely looming recession and a depleted ISA calls for a defensive stock that will likely continue to pay dependable dividends. For me, Tate & Lyle (LSE: TATE) is an excellent candidate. Food is always an essential good, even in bear markets.

Tate’s stock has grown 75% over the last 10 years and is currently outperforming the FTSE 250. The food and beverage ingredients manufacturer has refocused its goals and is now boasting more efficient operations.

A juicy 4.4% yield and good dividend cover is an attractive prospect. And especially so since the firm has never missed a payment. Tate & Lyle is a predictable but growing business with a sustainable dividend. Exactly what my ISA needs.

Rachael FitzGerald-Finch does not hold shares in Tate & Lyle.

Roland Head: WPP

As the end of the coronavirus lockdown starts to seem more likely, I think advertising giant WPP (LSE: WPP) could be a bargain buy. This FTSE 100 stock has been battered by this year’s stock market crash, falling by nearly 50%.

However, WPP had £3bn of cash on hand at the end of 2019. This should support the business through this difficult period. When lockdown ends, I expect ad spending to rise as companies aim to kick start their businesses.

WPP shares now trade on less than eight times forecast earnings. I think this is a great chance to buy.

Roland Head owns shares of WPP.

Jonathan Smith: BP

So far this year, the BP (LSE: BP) share price is down around 35%. A mix of the Covid-19 pandemic supply disruption and a falling oil price have been mostly to blame. The revised outlook now gives me confidence in buying into the share price.

The oil governing body (OPEC) are looking at supply cuts which should boost the oil price. With many countries looking to ease lock down measures next week, demand should boost revenue for BP at both a retail and wholesale level.

Aside from pure share price appreciation potential, the dividend yield currently sits at a juicy 10.8%, with no cut announced.

Jonathan Smith has no position in BP.

Royston Wild: Tate & Lyle

Tate & Lyle (LSE: TATE) is an attractively priced income share I think is one of the best British shares for May. Full-year results are due on Thursday the 21st and I reckon a rock-solid update is in the offing.

Food sales have gone through the roof as citizens the world over have stocked up on essentials following the Covid-19 outbreak. It’s a phenomenon that should keep Tate & Lyle’s long record of annual dividend growth supported, in contrast to the dividend cuts of many other UK-listed stocks. But of course the FTSE 250 firm’s trading had been “strong” even before the pandemic emerged. This is a share which is in great shape beyond 2020.

At current prices Tate & Lyle trades on a forward P/E ratio of 13 times. It boasts an inflation-mashing 4.5% dividend yield, too. It’s a brilliant May buy, in my opinion.

Royston Wild does not own shares in Tate & Lyle.

G A Chester: Capital Gearing Trust

I named Capital Gearing Trust (LSE: CGT) my top buy for 2020. As we approach the halfway stage in what is proving to be a tumultuous year, it remains my pick of choice.

The company’s dual objectives are to preserve shareholders’ real wealth, and to achieve absolute total return over the medium to longer term. It currently has 36% of its assets in equities/funds, with the remainder in cash and lower-risk assets such as index-linked bonds.

It’s never going to blow the doors off when markets are on a tear. However, it’s delivered a slow-and-steady-wins-the-race 8% annualised return over the last two decades.

G A Chester has no position in Capital Gearing Trust.

Paul Summers: IG Group

Nice as recent bounce has been, I’m still in risk-off mode when it comes to selecting stocks. My best British share for May is therefore online trading provider IG Group (LSE: IGG) — a stock that should do well even if markets head south again.

After a tricky few years, things are looking increasingly positive for the FTSE 250 member. Last week’s trading update spoke of “exceptionally high” revenue and the firm receiving record applications to use its platform.

Aside from being a play on further market volatility, IG also boasts great income credentials. At a time when dividends are being cancelled left, right and centre, it still plans to return 43.2p per share to holders this year. That’s a superb 5.7% yield. 

Paul Summers owns shares in IG Group.

Peter Stephens: Associated British Food

Associated British Food (LSE: ABF) recently reported that sales at its Primark stores have fallen from £650m per month to zero due to store closures caused by coronavirus.

However, the remainder of the business could mitigate the overall impact of coronavirus on its financial performance. Furthermore, ABF has cash of around £1.5bn. This should provide it with the financial means to survive a challenging economic period over the coming months.

The company’s share price has declined by over 25% since the start of the year. It may face an uncertain short-term outlook, but could deliver a capital growth over the long run.

Peter Stephens does not own shares in Associated British Food.

Manika Premsingh: RELX

The FTSE 100 analytics and decision tools provider, RELX (LSE: REL) posted a healthy trading update in April. For segments accounting for 84% of its 2019 revenues, the increase in 2020’s first quarter is actually improved compared to last year. This is a significant plus at the time of Covid-19.

RELX is financially sound, with manageable debt. It’s price to earnings (P/E) ratio at 23.2x could appear comparatively high, but that’s partly because its share price has recovered to a large extent already. Moreover, its P/E is in line with that of other defensive stocks. With its long-term potential and its price still relatively subdued, it’s my best British share to buy in May.    

Manika Premsingh has no position in RELX.

However, investors do have different tolerances for risk. And market crashes can throw it into sharp relief. Are you currently looking to add some lower-risk FTSE stocks to your portfolio? Or are you a new investor wanting to get started without being overly ambitious? So which shares fit the bill?

Core holding

National Grid (LSE: NG) is a blue-chip FTSE 100 stock. It has a near-monopoly position as the owner and operator of much of the UK’s gas and electricity infrastructure. As such, it’s a core holding in the portfolios of many investors.

The FTSE 100 has crashed 28% since world markets went into freefall. And some individual Footsie stocks have suffered much heavier drops. For example, cruise ship operator Carnival has seen its shares plummet 61%.

In this context, National Grid’s 19% decline is relatively benign. Nevertheless, it offers an opportunity for investors to buy into a lower-risk blue-chip at a discount price.

With the shares at 860p, and earnings per share (EPS) of 59.2p over the last 12 months, the price-to-earnings (P/E) ratio is 14.5. This is very reasonable for such a dependable blue-chip. Meanwhile, a running yield of 5.6% on a dividend of 47.83p is positively juicy.

Unique appeal

Jersey Electricity (LSE: JEL) is a small company, with unique appeal as a lower-risk investment. It’s the sole supplier of electricity in Jersey. The States of Jersey (the government of the British Crown Dependency) owns 62% of the shares, and the other 38% has been publicly traded on the London stock market for over half a century.

I understand the company has a largely stable shareholder base of institutions and committed individual investors. I think this is a large part of the reason why its share price rarely swings dramatically. It’s dipped just 6% in the current market crash.

At 434p, with trailing EPS of 38.42p, the P/E is 11.3. The dividend of 15.7p is just-about-bomb-proof, being covered 2.4 times by EPS, and gives a running yield of 3.6%.

Capital idea

I named Capital Gearing Trust (LSE: CGT) as my pick in our Motley Fool ‘Top UK shares for 2020’ feature at the start of the year. Due to its long history of steady, lower-risk returns, I suggested CGT was “a top buy for whatever 2020 brings.”

The company’s objective is “to preserve shareholders’ real wealth and to achieve absolute total return over the medium-to-longer term.” Around 35% of its portfolio is currently in equities, principally selected index trackers. But it also has substantial holdings in lower-risk assets, such as index-linked and conventional government bonds.

Its share price has declined a modest 9% to 4,070p in the current market crash. It now trades at a slight discount to its net asset value, compared with its usual small premium. It’s not a stock for income seekers (it has a sub-1% yield), but its record of low-volatility, long-term capital growth is superb.

In summary, I’d be happy to buy all three of these lower-risk FTSE stocks in a balanced equity portfolio, or as part of a sleep-easy portfolio of assets with some equity exposure.

For those willing to stick with stocks through tough times, I think FTSE 100 luxury goods firm Burberry (LSE: BRBY) is worthy of consideration. Its shares have inevitably dipped on fears surrounding the impact of the coronavirus on trading in China following management’s decision to close a third of its stores in the country.

While the stock could certainly have further to fall, I don’t see anything to suggest the long-term outlook has changed. Burberry remains a high-quality business that, aside from its highly coveted brand and growth potential in developing markets, generates consistently excellent returns on capital employed (a metric favoured by Warren Buffett) and boasts a strong balance sheet.

Given ongoing consolidation in this part of the market, I think it’s also a potential bid candidate. 

Paul Summers owns shares in Burberry

Kevin Godbold: Britvic

At the end of January, soft drinks producer Britvic (LSE: BVIC) said it had enjoyed a “robust” start to the year and was “confident” of achieving expectations for the full year. City analysts expect earnings to slip by around 10% in 2020, but the dividend should rise by a single-digit percentage with backing from the firm’s steady cash flow.

I reckon Britvic is a defensive stalwart with an enduring business bolstered by strong brands. As such, I see the recent bout of weakness in the share price as an opportunity to pick up some of the shares. The stock has been recovering since January and I’d hop aboard the rising trend for March and beyond.

Kevin Godbold does not own any shares in Britvic.

Royston Wild: The Gym Group

Fitness centre operator The Gym Group (LSE: GYM) put out a strong set of trading numbers back in January. Then it advised that, thanks to near-15% rise in membership numbers, revenues in 2019 boomed by almost a quarter from a year earlier to £153.1m.

The personal fitness market is increasingly big business. And the low-cost segment — one in which The Gym Group is a major player — is the most explosive part. I’m expecting the business to report a strong start to 2020 when it releases its preliminaries on Thursday, March 19, which in turn could drive fresh share price gains.

City analysts expect earnings at the firm to balloon 24% in 2020. I wouldn’t be shocked to see its record of annual double-digit-percentage increases persist well into the new decade, either.

Royston Wild does not own shares in The Gym Group.

Edward Sheldon: Hargreaves Lansdown

My top stock for March is online broker Hargreaves Lansdown (LSE: HL).

Hargreaves Lansdown shares are a little out of favour right now due to the role the company played in the Woodford Equity Income fund debacle. The fact that co-founder Peter Hargreaves sold £550m worth of shares last month won’t have helped investor sentiment.

However, the long-term investment case here remains attractive, to my mind. Britons desperately need to save and invest more for retirement in the years ahead, and as the market leader in the investment space, Hargreaves looks well placed to prosper. With the stock down around 30% from its 2019 highs, I believe now is a good time to be building a position.

Edward Sheldon owns shares in Hargreaves Lansdown.

G A Chester: Capital Gearing Trust

The experiment of persistent stimulative monetary policy since the financial crisis has undoubtedly distorted asset prices. I think it’s become difficult to be confident about which ‘cheap’ but structurally or cyclically challenged companies are truly cheap. Equally, which ‘expensive’ but quality businesses are really worth their premium valuations.

I view Capital Gearing Trust (LSE: CGT) as a good sleep-easy buy. It’s currently defensively positioned, with 34% exposure to equities, and substantial holdings in cash and index-linked government bonds.

Over two decades, it’s achieved more than double the annualised return of the UK equity market. And it’s done this with a worst-case fall in value of 9% versus the market’s 41%.

G A Chester has no position in Capital Gearing Trust.

Tezcan Gecgil: Royal Mail

My top choice for March is Royal Mail (LSE: RMG), a contrarian investment that may take several months to pay off.  In May 2018 the share price peaked out at over 630p. As a series of problems have dragged on the company’s performance, RMG stock is now hovering around 178p.

Although there are plenty of negative headlines on the group, I believe a large amount of bad news has already been priced in. So now may indeed be a good time to buy while sentiment is so poor towards the business.

‘Passive income’-seeking investors might be interested to know that in May 2019, management cut the annual dividend from 25p to 15p per share. Thus, I deem this as largely a growth opportunity for contrarians.

Tezcan Gecgil does not own shares in Royal Mail.

Roland Head: British American Tobacco

Tobacco stocks have been through a rocky patch over the last couple of years. But I think it’s fair to say that British American Tobacco (LSE: BATS) is coming out of the other side of this difficult period in fairly good shape.

The group’s most recent trading update confirmed market share gains and “a strong financial performance on an adjusted basis”. This suggests to me that profits for 2019 should be comfortably in line with City forecasts.

BAT has a strong portfolio of cigarette brands and continues to generate plenty of surplus cash. The forecast dividend yield of 6.3% looks safe to me. I see the shares as a buy.

Roland Head does not own shares in British American Tobacco.

Rupert Hargreaves: Rightmove 

Rightmove (LSE: RMV) is one of the UK’s top tech stocks. And no matter how badly the global economy is affected by the coronavirus outbreak, the firm should continue to provide a haven for investors in stormy waters.

Property prices across the UK have jumped since the general election in December, and this has inspired a wave of buying and selling activity. As the most visited property website in the country, Rightmove should benefit disproportionately from this movement.  

As such, now could be an excellent time for investors to snap up shares in this tech giant. A rising dividend payout, as well as share buybacks, only sweeten the appeal. 

Rupert Hargreaves does not own shares in Rightmove.

Tom Rodgers: Direct Line

Direct Line Insurance (LSE: DLG) now boasts a huge 6.5% yield at the time of writing. The FTSE 250 giant has a solid track record of improving dividend payouts in five of the last 10 years, and with CEO Penny James being allowed to make her mark, I think the future looks bright for the business with the iconic red telephone. Investors will pay a very cheap 10 times future earnings multiple, putting it right at the top of my list for long-term buys. 

Tom Rodgers has no position in Direct Line.

Matthew Dumigan: Bellway

In December, house prices rose for the first time in two years! The prospect of a settled economic outlook has calmed buyer’s nerves and caused prices to increase by 2.2% in December, up from 1.3% in November.

This signals great news for all UK house builders, but I specifically like the look of Bellway (LSE: BWY). As one of the UK’s largest property developers, Bellway’s share price has continually increased in tandem with its profits.

The company boasted an 8.6% increase in revenue and a 3.4% increase in profit before taxation for the year 2019. Combine this with the positive outlook in the property market for the UK, and I think the share price will continue to rise.

Matthew Dumigan does not own shares in Bellway.

Kirsteen Mackay: Primary Health Properties

With the coronavirus outbreak (COVID-19) unsettling financial markets around the world, I expect this trend to continue into March. My stock of choice for the coming month is Primary Health Properties (LSE:PHP) a FTSE 250 stock with no obvious reliance on China.  

Primary Health Properties invests in healthcare real estate and has a property portfolio of over 480 primary healthcare facilities with 99.5% occupancy.

The PHP share price is up almost 35% in the past year and it offers investors a 3.7% dividend yield. With its close ties to NHS organisations, pharmacies and dentists, I think this stock will continue to move in the right direction.

Kirsteen does not own shares in Primary Health Properties.

Jonathan Smith: Rio Tinto

Whilst the frequent volatility with the Rio Tinto (LSE: RIO) share price may scare away some investors, I believe it is a ride worth staying on for the foreseeable future. 

With a dividend yield of just over 6%, the income coming from dividends is enough to encourage buying in at current levels

I’m expecting full year results to be strong given the massive beat in mid-year results, which showed the largest profit since 2014. 

High iron ore prices are enabling the business to perform well – after all, 50% of the firm’s revenue comes from this source. 

Jonathan Smith does not hold any shares in Rio Tinto.

Manika Premsingh: Diageo

When the overall market is weak, the best performing stocks are available at a discount. A case in point is the FTSE 100 alcohol producer Diageo (LSE: DGE). There’s little not to like about it. 

As a consumer defensive stock, its demand remains stable irrespective of economic conditions. It’s seen an enviable upward pointing price graph in the past decade. Further, DGE’s financials are healthy and its price-to-earnings (P/E) ratio at 23.6x makes it relatively affordable. With uncertainty in global markets likely to persist in the foreseeable future, I reckon there will be opportunities to buy DGE in March as well.

Manika Premsingh has no position in Diageo.

An uncertain future for the UK economy means that international stocks such as Diageo (LSE:DGE) could become increasingly popular among investors in 2020.

The alcoholic beverages company has significant exposure to fast-growing emerging markets that are forecast to maintain a high rate of GDP growth in the next 12 months. Additionally, it is investing in improving its efficiency, while recent updates have shown that product innovation may enable it to successfully adapt to changing consumer tastes.

Diageo’s price-to-earnings (P/E) ratio of 22 may be higher than those of many FTSE 100 shares. But its growth potential and defensive characteristics could make it a strong performer in 2020.

Peter Stephens owns shares in Diageo.

Roland Head: Carnival

In recent months, I’ve been adding shares in FTSE 100 cruise ship giant Carnival (LSE: CCL) to my ISA portfolio. I see this market-leading company — which owns brands including P&O Cruises, AIDA and Princess — as a good long-term play on the global cruise and tourism markets.

Although Carnival suffered headwinds from rising fuel costs and other disruptions in 2019, the firm expects a return to growth in 2020. Bookings for the first half of the year are said to be ahead of the same period in 2019, with stable pricing.

Carnival shares look reasonably priced to me, on around nine times forecast earnings and with a dividend yield of 4.7%. I rate them as a buy for 2020.

Roland Head owns shares of Carnival.

T Sligo: HSBC Holdings

HSBC (LSE: HSBA) has suffered from three separate geopolitical issues: Brexit, the US-China trade war and the protests in Hong Kong. Over the past year its share price has reflected these challenges, dropping 11% in the year-to-date.

I believe its current valuation offers investors a good buying opportunity. The bank’s price-to-earnings ratio is only 11 and its prospective dividend yield is over 6%. 

By the end of 2020, geopolitical tensions may have eased: the US could have a different president and Britain’s departure from the EU might be clearer (or off the table). If there is also a resolution to the protests in Hong Kong, I would expect HSBC’s share price to significantly increase.

T Sligo has no position in HSBC.

Rupert Hargreaves: Redrow

Homebuilder Redrow (LSE: RDW) looks to me to be one of the most undervalued stocks in the FTSE 350 right now, and that’s why I’ve picked the company as my top stock for 2020.

It’s no secret that the UK has a structural undersupply of homes, and this is not going to change any time soon. In my opinion, that means no matter what happens to the economy over the next five or 10 years, homebuilders like Redrow will continue to see strong and growing demand for their services.

But despite this demand potential, shares in Redrow look cheap. The company is trading at a forward P/E of less than eight and EV/EBITDA multiple of only 5. On top of this, analysts reckon the stock will support a yield of nearly 7% next year.

Rupert Hargreaves does not own shares in Redrow.

Kevin Godbold: British American Tobacco

2019 saw the shares of British American Tobacco (LSE: BATS) languish at levels more than 45% below their peak in 2017. Regulatory fears about vaping products and menthol cigarettes have driven the stock down, and it appears to be out of favour with investors judging by the forward-looking dividend yield for 2020, which is north of 7% as I write.

However, at the end of November, the firm said it’s on track to deliver a “strong” trading outcome for 2019. Chief executive Jack Bowles said in the report the issues around vaping in the US should lead to a better and stronger regulatory environment in which “we are well placed to succeed.” Operationally, things have been going well in both traditional and new product categories. I reckon 2020 could be a year in which the valuation rerates upwards, and I’m picking BATS as my top share for the year.

Kevin Godbold owns shares in British American Tobacco.

Edward Sheldon: Diageo

My top stock for 2020 is alcoholic beverage company Diageo (LSE: DGE). It owns a world-class portfolio of brands including Johnnie Walker, Smirnoff and Tanqueray, and sells its products in over 180 countries across the world.

The reason I have chosen Diageo is that it’s relatively immune to the economic cycle as people drink alcohol during both the good times and the bad. Given that economic uncertainty remains elevated as we begin 2020, I think it’s a good stock to own right now.

Diageo shares are a little more expensive than your average FTSE 100 stock. However, I wouldn’t let the valuation put you off. This is a high-quality, dependable stock that deserves a premium valuation, in my view.

Edward Sheldon owns shares in Diageo.

Kirsteen Mackay: Imperial Brands

My top stock for 2020 is tobacco company Imperial Brands (LSE: IMB). Since losing its defensive appeal, with the tobacco industry in decline, I think it now has growth potential through its focus on next-generation alternatives to cigarettes.

IMB is a UK-based tobacco company with a global presence. It has had a dismal two years, but I think it will begin to turn around in 2020. This FTSE 100 company has a standout dividend yield of 12% and trailing price-to-earnings ratio of 16. It seems to be on the lookout for new opportunities to meet consumer needs and harness loyalty. Recent examples include the August launch of its myblu Starter Pack to help adult smokers switch to vaping, followed by its release of Lambert & Butler roll-your-own, in November, to address the desire for cheaper alternatives to cigarettes, whilst retaining brand loyalty.

 Kirsteen Mackay does not own shares in Imperial Brands

Paul Summers: Games Workshop

Like every year, no one knows for sure where markets are going in 2020. That’s why I’d focus on investing in quality businesses that can be held ‘forever’. 

My pick is fantasy figurine maker Games Workshop (LSE: GAW). It may be one of the best-performing shares in recent years (and now valued accordingly) but I think there’s still lots of room for the company to grow, especially in relatively untapped Asian markets. It has no competitors, a loyal following, a debt-free balance sheet and generates sky-high margins and returns on capital employed.

I’ll be adding to my own holding on any weakness. 

Paul Summers owns shares in Games Workshop.

G A Chester: Capital Gearing Trust

I’m making Capital Gearing Trust (LSE: CGT) my top buy for 2020 not because I’d expect it to make the biggest gains if we have a raging bull market. It won’t. Not with little more than 30% exposure to equities, and substantial holdings of cash and lower-risk assets, such as index-linked government bonds.

However, this positioning offers relative downside protection — as well as the potential to pick up equities at dirt-cheap prices — in the event of a bear market. As such, I see Capital Gearing, which has a long history of steady, lower-risk returns, as a top buy for whatever 2020 brings.

G A Chester has no position in Capital Gearing Trust.

Tezcan Gecgil: Centamin

Investing in gold miners may add some sparkle to your portfolio in the new year. In 2019 many gold miners saw their share prices pop as global gold prices also surged higher. Yet there has been some profit-taking in the tail-end of 2019, which may be of interest to some of our readers.

I’d consider Centamin (LSE: CEY), which is best known for Egypt’s Sukari gold mine.

In early December, CEY rejected a £1.47bn all-stock takeover proposal from Canada-based Endeavour Mining, saying it fundamentally undervalued the company. Going forward, I expect bidding wars to heat up as consolidation in gold sector continues.

This mid-cap stock has a robust balance sheet with no debt. And it offers a current dividend yield of about 4.8%. The next ex-dividend date is expected in April 2020.

Tezcan Gecgil does not own shares of Centamin.

Karl Loomes: BT

Seeing its stock under pressure amid talks of increased competition and nationalisation, I think 2020 will see the BT (LSE: BT-A) share price really begin to gain ground. Nationalisation talks not withstanding, the restructuring and cost-cutting plan BT has been implementing should truly start to show in 2020, when job cuts particularly will be helping the bottom line in the quarterly results and full-year results.

Meanwhile one of BT’s biggest concerns – its liabilities from its pension obligations – should continue to slide as a natural consequence of older employees leaving (the pension scheme was closed to employees in 2018). A potential dividend cut may hit investors in the short term, but if it happens it will only help secure longer-term growth anyway.

Karl Loomes owns shares in BT.