UK share markets have continued their relentless march higher this week. Both the FTSE 100 and FTSE 250 have enjoyed meaty double-digit rises since the beginning of November. It’s quite possible they could keep their heady ascent going too, as optimism over Covid-19 vaccines grow.
Investing just on the basis of how UK share prices will behave in the short term is a dangerous business. But taking a long-term view and buying quality stocks today based on how they’ll perform over the space of a decade plus is a more likely successful approach.
Buying after the stock market rally
Loading up on UK shares based on this strategy is a great idea. History shows us that investors who buy stocks and hold them for at least a decade tend to make an amazing yearly return of at least 8%. And building a top-class shares portfolio in something like a Stocks and Shares ISA is a particularly good idea today.
Firstly, there’s a wealth of information out there from experts like The Motley Fool to help you in your quest to get rich. And secondly, there’s a wealth of five-star UK shares trading far too cheaply following the early 2020 stock market crash. That’s even though many British stocks have leapt in value following those breakthroughs on the Covid-19 vaccine front.
A 6%-yielding UK share I’d buy in an ISA
In recent months I’ve built my exposure to the e-commerce segment by buying UK shares. This was a good idea as the Covid-19 crisis has supercharged online shopping activity all over the globe.
The two shares I bought to ride this trend were Tritax Big Box REIT and Clipper Logistics. Their warehousing and logistics facilities make them indispensable cogs in the e-commerce machine. My enthusiasm for these particular UK shares has been bolstered by Clipper’s most recent trading update of mid-November too. Then it said revenues surged 20% in the six months to October as e-fulfilment logistics turnover leapt by almost a third.
There are other terrific UK shares like these to buy today. One I think is worth particular attention is Urban Logistics REIT (LSE: SHED). The business is expected to record a slight drop in annual earnings in this fiscal year (ending March 2021) by City analysts. But it’s expected to come roaring back with a 33% bottom-line rebound in financial 2022. And this leaves it trading on a rock-bottom forward price-to-earnings growth (PEG) ratio of 0.5.
The prospect of electric earnings growth and low earnings multiples aren’t the only things to whet my appetite though. Its position as a real estate investment trust (or REIT) makes UK shares like this popular among dividend investors.
And Urban Logistics doesn’t disappoint on this front. Its yields sit at a gigantic 4.6% and 6.2% for fiscal 2021 and 2022 respectively. I’d happily buy this top-quality stock for my ISA, but it’s not the only growth hero worthy of serious attention from ISA investors today.
