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2 cheap UK dividend shares I’d buy for my Stocks and Shares ISA

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Okay, the economic outlook might be as clear as mud. And as a consequence, UK share investors need to be very careful before taking the plunge. But in my opinion there are plenty of top stocks that should still thrive in this environment.

Here are two I’d happily buy for my Stocks and Shares ISA today:

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Gold star

I like the look of gold producer Centamin (LSE: CEY) a lot. Fears over the state of the economic recovery are rumbling on as the Covid-19 pandemic continues. Inflationary concerns are also spiralling as central banks maintain loose monetary policy and, along with governments, continue their aggressive stimulus programmes. I believe all this creates a perfect storm for gold prices to move higher again.

As is the case with all UK shares, there are risks to consider before buying Centamin. A sudden improvement in the global economy could cause demand for safe-haven assets to fall considerably. There’s also rising speculation that Bitcoin could surpass gold as the world’s foremost flight-to-safety asset. This might have considerable long-term demand implications for Centamin’s product.

Gold medal

That said, I still think the precious metals digger remains an attractive buy today. Sudden operational problems at Centamin and falling gold prices could put current earnings forecasts in danger. But City analysts reckon earnings here will rise 15% in 2021. This results in a low forward price-to-earnings growth (PEG) ratio of 0.9. Conventional thinking suggests shares trading under a reading of 1 might be undervalued. Of course, forecasts can change based on future developments, so that PEG can change, too.

On top of this, Centamin also carries a 5.8% dividend yield for 2021. It’s a reading that outstrips the current 3.5% average of UK shares overall.

A UK share I already own

I’m also a big fan of Games Workshop Group (LSE: GAW) today. In fact, I’m so enamoured that I’ve added this particular UK share to my own Stocks and Shares ISA in recent months.

Fantasy wargaming giant Games Workshop has a number of tricks up its sleeve. Its position at the top table of a niche entertainment form allows it to keep raking in sales during economic upturns and downturns. News that the company generated more profit in the six months to November than it had during the entire previous fiscal year provides evidence of this. Not even a global pandemic and a sharp economic crash could derail its immense popularity.

I’m also encouraged by the steps the company has made to expand its geographical footprint. Overseas demand for its gaming products is soaring and it now generates almost three-quarters of sales from foreign customers. There is a threat to Games Workshop’s operations, however: despite copyright issues, 3D printing of the company’s premium miniatures among the gaming community is on the rise.

As with Centamin, there’s always a danger that City estimates can be blown off course. But today, forecasts suggest Games Workshop’s earnings will rise 58% this fiscal year. This leaves the company trading on a forward PEG multiple of 0.6. In my opinion a handy 2% dividend yield sweetens the investment case.

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Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Royston Wild owns shares of Games Workshop. The Motley Fool UK owns shares of Games Workshop. 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.

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