I’m thinking of buying Home REIT (LSE: HOME) shares to receive big dividends while making the world a better place. This UK stock works with charities, housing associations, and other organisations to provide accommodation to homeless and vulnerable people. The need for social housing in the UK is rocketing, with official statistics showing some 1.2m families on the waiting list for such accommodation at the end of 2020.
Supply of all types of social housing has failed to keep up with demand over the past decade. And Home REIT is investing vast sums to soothe this shortfall. It raised £350m via a rights issue in September, almost half of which it has just spent to acquire 366 properties. The company’s acquisition pipeline is packed with other opportunities, which it’s ready to pull the trigger on, too.
Home REIT’s acquisition-led growth strategy leaves it open to a series of risks like huge unexpected costs and disappointing revenues growth. But there’s still plenty of reasons why I like this ESG share today.
A acquisition-led UK stock on my radar
Begbies Traynor (LSE: BEG) is also high on my shopping list today. This is because I think the number of corporate casualties could unfortunately be poised to soar as the British economy slows and the furlough financial support scheme ends. According to the Insolvency Service there were 1,446 insolvencies in England and Wales last month. That was an eye-watering 56% year-on-year increase.
I wouldn’t buy this UK share just because I expect profits to leap in the short-to-medium term. I think it could rate terrific shareholder returns over the next 10 years, as its acquisition-led growth strategy rolls on. Begbies Traynor operates in a highly regulated industry and future potential changes in the law could affect its profits.
Another chance to make big money!
I believe Mind Gym (LSE: MIND) could be another great company to buy for my portfolio for the next decade. This UK share has risen 133% in value over the past year alone. I expect it to keep soaring too as companies try to support workers’ mental health and improve their productivity following the Covid-19 crisis.
Mind Gym saw revenues jump 76% year-on-year in the six months to September. Sales were also up 7% compared to the same 2019 period. The business of behavioural science is booming and Mind Gym says that it’s worked with half of all FTSE 100 and S&P 100 companies. However, it’s not just the big hitters that are investing in their workforce’s wellbeing. A GlobalData survey shows that around one-third of UK small to medium-sized companies have increased their support for mental and physical wellbeing since the Covid-19 outbreak.
I also like Mind Gym’s decision to ramp up investment in its digital proposition. As a consequence, digital now accounts for more than 80% of group sales. Project overruns and disappointing returns could have a significant impact on predicted profits.
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Royston Wild 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.