The economic landscape remains fraught with danger as the public health emergency rolls on and inflationary pressures rise. I haven’t stopped buying for my Stocks and Shares ISA despite the uncertain outlook for corporate earnings though. And I’m still looking for the best shares to buy for my portfolio today.
One of the best green shares to buy
I believe UK shares involved in the business of renewable energy are top buys today. Demand for low-carbon energy is booming and legislative pushes across the globe means it should continue to do so too. This is where Greencoat Renewables (LSE: GRP) comes into the equation. The company operates a portfolio of wind farms, predominantly located in Ireland, and it’s expanding aggressively to drive the bottom line.
Greencoat acquired four wind farms on the Emerald Isle last year. And the company has been taking action to expand its wingspan on Continental Europe too. It started the ball rolling by purchasing three French wind farms in 2020. The UK share also entered Finland last month by spending €60m on a project that’s set for completion in 2022.
Remember that City forecasts can be blown off course (so to speak) by deteriorating trading conditions. And in the case of Greencoat Renewables this can be caused by the unpredictable nature of wind flows.
High and unexpected costs due to extreme weather damaging turbines can also hit the bottom line. But right now, analysts reckon this UK share’s profits will rise more than 170% year on year in 2021.
This makes Greencoat Renewables one of the best value dividend shares to buy right now. Those earnings projections leave the UK energy stock trading on a forward price-to-earnings growth (PEG) ratio of 0.1. A reading below 1 can suggest a stock is undervalued. At current prices the company carries a mighty 5.2% dividend yield too.
A FTSE 100 dividend star
I think those seeking gigantic dividends should also give housebuilders close attention. It’s possible that a slow economic recovery from the Covid-19 crisis could hit homes demand in Britain. Naturally this means newbuild sales could hit the skids. But I still think some of the dividend yields in this sector make these UK shares worthy of a close look.
Take FTSE 100 stock Persimmon (LSE: PSN) for instance. The dividend yield here sits at a mighty 9.1% yield for 2021. I believe trading conditions should remain strong enough for the company to keep paying large shareholder dividends long into the future as well.
Government support for buyers remains substantial and, this month, it introduced a mortgage guarantee scheme that allows Britons to buy with just a 5% deposit. It’s possible that the Help to Buy equity scheme will run well into the 2020s as well. I expect Persimmon to remain a robust profits-making machine long into the future.
