The Motley Fool

3 dirt-cheap UK shares I’m considering buying for 2022

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.

Image of person checking their shares portfolio on mobile phone and computer
Image source: Getty Images.

I’m searching for the best cheap UK shares to add to my stocks portfolio for 2022. Here are three top-quality companies on my shopping shortlist today.

A dirt-cheap mining share

I’m seriously considering buying Anglo Asian Mining (LSE: AAZ) today. This is because I think the price outlook for the copper and gold it produces is extremely favourable. I expect a backdrop of runaway inflation to power the asking prices for both the metals it produces. And for copper specifically, I reckon values will climb as demand for electric vehicles and renewable energy technology grows.

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!

However, mining shares like this can be risky propositions. The complex nature of their operations can result in huge, unexpected costs and lost revenues related to output issues. Still, it’s my opinion that Anglo Asian’s low rating reflects this danger. The business — which operates mining assets in Azerbaijan — trades on a P/E ratio of just 9 times for 2022.

A bargain from the FTSE 100

Meanwhile, BAE Systems (LSE: BA) offers the sort of all-round value I find hard to ignore. For 2022, the defence contractor trades on a price-to-earnings (P/E) ratio of 11 times. And its 4.5% dividend yield beats the broader average for FTSE 100 shares by a full percentage point.

Unfortunately, fighting wars is a constant throughout human history. This means the products and systems it manufactures will always remain in high demand. The Footsie firm is a market leader across a broad range of segments, making it a critical supplier to the US and UK militaries.

BAE Systems also has exposure to some fast-growing emerging markets where arms spending is rising rapidly. Its Australian division gives it a leaping off point into Asia Pacific, a territory where fears over Chinese expansionism are steadily growing.

BAE Systems also has an excellent reputation for quality and innovation. This gives me confidence that it should remain a major industry player for years to come. But I’m aware that previous victories are no guarantee of future success, and a high-profile failure of its systems could prove devastating for future business.

Making money with UK property

Residential Secure Income (LSE: RESI) also provides plenty of attention-grabbing value today. Its dividend yield clocks in at a plump 5.2% for the fiscal year to September 2022. And its price-to-earnings growth (PEG) multiple for next year comes in at 0.7. A reading below 1 suggests a stock could be undervalued.

The residential rentals market can still be highly lucrative. But rather than doing this through buy-to-let, I’d buy UK shares like Residential Secure Income. This is much simpler and less expensive than if I were to become a landlord.

Rents in Britain continue to go from strength to strength. Latest data from estate agency Hamptons showed tenant costs for four-bedroom properties soar 10.6% year-on-year in October. While the going remains good for Residential Secure Income, remember that rent growth could cool if Britain’s massive shortage of rental homes begins to improve.

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 still 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 is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

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.

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.