The Motley Fool

2 UK shares to buy right now

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.

Entrepreneur on the phone.
Image source: Getty Images

I think two of the best UK shares to buy right now are Tate & Lyle (LSE: TATE) and Cranswick (LSE: CWK)

There is a simple reason why I would buy both of these stocks for my portfolio today. In an uncertain world, one thing is certain, that is the fact that humans will always need to eat. Tate and Cranswick both produce and supply food products.

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!

As such, I think these are some of the most defensive UK shares on the market right now. 

Further, it looks as if both firms offer an attractive package of income and growth

Defensive UK shares 

Tate is one of the UK’s oldest listed companies. It is currently overhauling its business model for the next stage of growth. 

The group recently announced that it would be splitting itself in two by selling part of its business. 

The so-called NewCo will take over the firm’s plant-based products for the food and industrial markets. Meanwhile, the legacy Tate business will remain a global food, and beverage solutions operation focused on faster-growing speciality markets. 

Management believes that by refocusing the business, the company will be better positioned to capitalise on consumer demand for healthier food and drink, which the global pandemic has accelerated.

As part of this deal, Tate will receive £0.9bn from the sale of its interest in the NewCo. Of this, management has earmarked £500m that will be returned to investors. The firm will use the rest to pay down debt and fund growth initiatives. 

One of the best shares to buy now 

Cranswick is also revisiting its business model as it looks to the future. The company, which produces a range of predominantly fresh food products, has been investing to increase output and improve its ESG credentials.

Last year, the company spent £72m on new production facilities, including £25m on a breaded poultry facility in Hull and a £20m cooked bacon facility. 

In addition, nine of its sites have achieved carbon neutral certification. It also retained its Tier One status in the global Business Benchmark on Farm Animal Welfare for the fifth consecutive year. 

These are the main reasons why I believe these are some of the best UK shares to buy right now. Not only are the two companies investing for the future, but they are also focusing on some of the most central growth themes around right now. These include the rising demand for healthy, high-quality food with a low carbon footprint. 

That said, both organisations do face some enormous challenges. Food production is highly specialised and regulated. If either firm is found to be compromising on quality, reputations could take a huge hit. 

Further, the industry is incredibly competitive. Just because Cranswick and Tate have succeeded so far does not mean that they will continue to do so. 

Still, despite these risks, I would buy both stocks for my portfolio today. As well as their growth potential, both stocks offer an attractive level of income. Shares in Cranswick currently yield 1.8%, while Tate yields 4.2%, excluding the potential special dividend. 

Our 5 Top Shares for the New “Green Industrial Revolution"

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special "Green Industrial Revolution" presentation now

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.