The Motley Fool

Stock market crash incoming? I’d buy these 3 UK shares regardless!

Businessman looking at a red arrow crashing through the floor
Image source: Getty Images.

Stock market crashes are part and parcel of investing. As the current Omicron-induced market wobble shows, many investors are willing to sell shares at the drop of a hat.

Could we see a crash before the year’s out? It’s possible. Sooner or later there’ll be one. But I wouldn’t let that stop me buying stocks today. Here are three I’d be particularly comfortable owning even if markets were to crash tomorrow.

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!

Government-backed income

Primary Health Properties (LSE: PHP) invests in primary healthcare facilities in the UK and Ireland. Its latest acquisition is quite typical, being a modern purpose-built facility, fully let to a substantial GP practice and a pharmacy. This acquisition increases its portfolio to a total of 519 assets.

The properties are let on long leases and most of the rental income is backed, directly or indirectly, by the UK and Irish governments. The lease duration and tenant profiles give PHP an exceptionally secure rental income stream.

The company pays quarterly dividends. These have totalled 6.2p for 2021, giving a yield of 4.1% at the current share price. This is the 25th consecutive year of dividend growth.

One downside risk for PHP is that the appeal of the primary health property sector is attracting new purchasers, meaning the group is facing increased competition for viable opportunities. Nevertheless, management believes PHP “remains exceptionally well positioned to deliver low-risk sustainable shareholder returns”.

Flight to safety

Gold often does well when stock markets crash. This is one reason why I’d be happy to buy Endeavour Mining (LSE: EDV) today. The company has six producing gold mines across Burkina Faso, Côte d’Ivoire and Senegal. It also has a strong portfolio of advanced development projects.

Nevertheless, I need to be aware that operational setbacks are a risk with miners and can hurt earnings and dividends. Having said that, the impact on multi-asset EDV would be lower than for a single-asset producer.

The company has an attractive progressive dividend policy. It’s set minimum payouts for 2021 ($125m), 2022 ($150m) and 2023 ($175m). At the current share price, these equate to yields of 2.1%, 2.5% and 3%.

But there’s a further element to the dividend policy. Distributions may be supplemented with additional dividends and share buybacks, providing the prevailing gold price remains above $1,500 per ounce and the company’s leverage remains low. It’s currently buying back shares.

One-stop shop

A third stock I’d be more than comfortable buying today, regardless of the risk of a market crash tomorrow, is Personal Assets Trust (LSE: PNL). The trust has a long history of successfully meeting its investment objective “to protect and increase (in that order) the value of shareholders’ funds per share”.

It does this by diversifying not only across equities, but also other assets. Equities currently account for 41.4% of its portfolio. Its top five stock holdings are Microsoft, Alphabet, Visa, Nestlé and Unilever. Meanwhile, it has 30.3% in US index-linked bonds, 20.3% in cash and UK treasury bonds, and 7.9% in gold bullion.

PNL’s multi-asset positioning mitigates the impact of a stock market crash. But on the other side of the coin, there’s the risk — almost an inevitability — that it will underperform in rampant bull phases of equity markets. I also need to be aware that it has an extremely conservative dividend policy and a current yield of just 1.1%.

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

G A Chester has no position in any of the shares mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Alphabet (A shares), Microsoft, Primary Health Properties, and Unilever. 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.