The Motley Fool

2 ‘top secret’ dividend stocks I’d buy for my ISA with my last £2k

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Hand holding pound notes
Image source: Getty Images.

There’s no such thing as a sure bet when it comes to stock investing. Those who bought into mighty blue-chips Tesco, Centrica or British American Tobacco a decade ago will attest to just how far the mighty can fall in just a short space of time.

That said, I’d be willing to stake my last couple of thousand pounds on Bloomsbury Publishing (LSE: BMY) continuing to deliver terrific shareholder returns for many years to come.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!


The evergreen popularity of the Harry Potter franchise has been the publisher’s bread and butter for the past few decades. And there’s no sign Hogwarts-related mania will be dying down any time soon.

Potter prequels such as Fantastic Beasts And How To Find Them continue to attract legions of avid readers and film fans. Meanwhile, Harry Potter And The Cursed Child keeps drawing in legions of theatregoers in the West End and on Broadway, leading to speculation a movie version of the hit book and stageplay is imminent. No wonder Bloomsbury said Harry Potter remained one of its strongest-selling range of consumer titles in the four months to June, more than 20 years after they first hit bookshelves.

It’s important to point out Bloomsbury isn’t just a great play on Pottermania. It’d be an injustice not to mention the enormous profits potential that the small-cap’s drive into the academic and professional publishing arena, a segment where revenues shot 13% higher in the last fiscal year.

Unsurprisingly, City analysts are expecting more meaty earnings growth at Bloomsbury in the medium term (7% and 11% for the fiscal years ending February 2020 and 2021, respectively, to be exact). And this means they’re also expecting the firm — which has raised dividends each and every year for 24 years — to keep increasing the shareholder payout too.

This means that, at current prices, the publisher carries chunky yields of 3.7% and 3.8% for this year and next. Combine this with a forward price-to-earnings (P/E) ratio of 14.4 times and I reckon Bloomsbury’s a top bargain buy for your ISA today.

Fancy some 6% yields?

I’d also be very happy to spend my remaining investment capital to buy shares in Target Healthcare REIT (LSE: THRL). This particular share operates care homes all across the UK and so stands to gain from an increasingly ageing population, and the steady demand for specialist accommodation for this demographic, in the years ahead.

But this isn’t all. Target has plans to supercharge profits growth via an aggressive expansion strategy all over the country, and has recently undertaken a restructuring of its debt facilities and raised equity to give it more firepower on this front. Just last month, the small-cap spent around £19m to add an extra two care homes in Yorkshire and the West Midlands to its estate.

Now City analysts expect Target to pay a 6.6p per share total dividend for the fiscal year ended June and, helped by a estimated 26% earnings rise, predict it’ll rise to 6.7p in the current period. This means investors can enjoy a 6% dividend yield.

I expect the firm to remain a big dividend payer in years to come, thanks to its proactive approach in a market loaded with structural opportunity.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.