3 penny stocks I’d buy to hold for 10 years!

I’m searching for top penny stocks to buy for the next decade. Here are three cheap UK shares I think could make me terrific returns through to 2032.

| More on:

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.

I’m not letting the Omicron outbreak dampen my investing appetite. As a long-term investor, I look for UK shares that will make me decent returns over a number of years, usually a decade or more. Even the possibility of near-term economic volatility doesn’t make me run for the hills.

History shows us that, even accounting for times when stock markets crash, share investors tend to enjoy an average annual return of 8%. So why should I let the ongoing Covid-19 emergency, rising inflation, or turmoil in the Chinese property market derail my plans?

Here are three top penny stocks I’d buy to hold all the way through to the early 2030s.

Power play

There are plenty of renewable energy stocks that UK share investors can pick up today. One that I’m paying attention to right now is OPG Power Ventures (LSE: OPG). This is because, as well as having a packed pipeline of solar projects for the next several years, the power plant operator plies its trade in India. This puts it in the box seat to exploit soaring energy demand in the country.

The International Energy Agency said in a recent report that it expects energy demand growth in India to be greater than any other country from now until 2040. This will be driven by an expanding economy and population as well as urbanisation and industrialisation, it reckons. I’d buy OPG to ride this theme despite the threat that project delays could significantly damage profits.

A top electric vehicle stock

I’m also considering buying Pendragon (LSE: PDG) for my shares portfolio to ride the electric vehicle (EV) boom. Increasing environmental concerns among drivers — allied to worries over future petrol prices following recent surges  — means sales of battery-driven and hybrid vehicles are soaring.

According to the Society of Motor Manufacturers and Traders, sales of such vehicles rocketed 67.4% year-on-year to 42,146 units in November. This meant new car sales overall rose 1.7%, ending four months of successive declines.

The market for EVs will only get stronger as concerns over the climate emergency accelerate too. So I’d buy Pendragon to make money from this trend, even as the threat of supply chain problems in the auto industry roll on.

Another penny stock for the green revolution

Rising concerns over vehicle emissions also bodes well for platinum producers like Jubilee Metals Group (LSE: JLP). The metal is a critical component in catalytic converters where it’s used to reduce harmful emissions. Recent legislative changes (especially in China) mean that higher loadings of these metals are required to combat global warming.

Platinum is also used in vast amounts to build hydrogen fuel cells. This is because it’s an excellent catalyst for splitting hydrogen into protons and electrons. This means demand for Jubilee Metals could soar if, as some expect, hydrogen cars become part of the mainstream over the next decade.

This makes the cheap UK share highly attractive in my book. That’s despite the threat that problems during the mining process could hit Jubilee’s bottom-line hard.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Pendragon. 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.

More on Investing Articles

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

2 of the best stocks to buy now with £500

I think that Berkshire Hathaway and Activision Blizzard are two of the best shares to buy today. I think they…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

I bought 10 cheap shares. Here’s what happened next

After recent price falls, we bought 10 cheap shares for extra passive income in future. This mini-portfolio offers a tasty…

Read more »

Close up view of Electric Car charging and field background
Investing Articles

Is now a good time to buy Chinese EV stocks as economic growth slows?

Chinese EV stocks tend to trade at a considerable discount to their US counterparts. And that's one reason I like…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

I’d happily start investing in today’s stock market – here’s why

The stock market has been moving up even as the economy has been looking shakier. Would our writer start investing…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Up 22% in a month! This FTSE 100 takeover target could rise further

A takeover bid for an FTSE 100 firm is big news. Here's what I'm doing about RS Group shares after…

Read more »

Young female analyst working at her desk in the office
Investing Articles

Income shares could help me turn £300 into £500. Here’s how

Our writer believes investing in the right income shares over the long term could be lucrative. Here is his approach.

Read more »

Bearded man writing on notepad in front of computer
Investing Articles

I bought these FTSE 250 shares for fat dividends!

These two FTSE 250 shares have gained in value since I bought them recently. But I still see these stocks…

Read more »

Shot of a young Black woman doing some paperwork in a modern office
Investing Articles

Should I buy this REIT to add to the others that pay me juicy dividends?

Jabran Khan looks closer at this real estate investment trust (REIT) and decides if he would add the shares to…

Read more »