3 dirt-cheap UK shares to help me become an ISA millionaire

The ISA deadline is fast approaching, but what are the best UK shares to buy now? Zaven Boyrazian explores his top picks.

| 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.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The Stocks and Shares ISA has proven to be an immensely popular vehicle for buying UK shares. With investment returns immune to the tax man’s clutches, British investors can grow their wealth much faster. And reaching millionaire status using this type of trading account is not unheard of.

But with the April deadline fast approaching, what are the best UK shares for me to buy in my ISA right now? Let’s explore.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Profiting with pizza

Domino’s Pizza Group (LSE:DOM) has been on quite a run. Since the start of 2019, shares are up over 50%, thanks to impressive growth in pizza sales. The pandemic certainly helped in that regard. But the momentum has since continued.

And now that management has resolved its long-standing franchisee conflict, growth might be about to accelerate even faster. Or at least, that’s the impression I got when the firm announced its £1.9bn sales target versus £1.5bn today.

A good chunk of this growth can be attributed to the continued digital transformation of the group. But of course, that does create a potential vulnerability. Suppose a successful cyber attack takes its systems offline, even for a short time? In that case, it could lead to a substantial loss of orders to competitors. Nonetheless, with its shares falling by 20% since the start of 2022, courtesy of market volatility, the UK business looks like a bargain buy for my portfolio.

UK shares fuelling the renewable energy era

With global warming becoming an ever more present threat, the world has begun making the necessary shift towards renewables. But to achieve this ambitious transition, a lot of raw materials are going to be needed, especially essentials such as battery metals including cobalt and vanadium.

This has created quite the tailwind for UK mining shares. And while there are plenty to choose from, my personal favourite is Anglo Pacific Group (LSE:APF). The royalties business provides the funding for larger mining firms to establish drilling sites in exchange for a portion of the extracted materials.

This approach has proven to be significantly more profitable, with operating margins currently standing at over 45%. It’s obviously still susceptible to the risks of fluctuating commodity prices. However, with a diversified portfolio consisting of essential renewable energy metals, I think the stock could be perfectly positioned to deliver long-term growth potential to shareholders. Even more so when considering it’s still trading at a 20% discount to pre-pandemic levels despite superior financial performance.

The small-cap behind modern technology

With the world’s dependence on technology growing even bigger, XP Power (LSE:XPP) is currently enjoying a pretty massive tailwind. The group is a designer and manufacturer of electronic components for equipment used throughout the industrial engineering, healthcare, and semiconductor industries.

The latter is particularly exciting as supply chain disruptions are currently driving substantial investments into this space. That’s obviously a highly lucrative opportunity and has so far resulted in a 46% jump in its semiconductor division revenue last year.

However, it’s not without its flaws. With 80% of revenue originating from its factories in China and Vietnam, the UK shares have recently been under a lot of pandemic related pressure in that region of the world. But while this problem may continue to plague the business in 2022, it’s ultimately a short-term issue. That’s why the stock’s recent 32% tumble since the start of the year looks like an excellent buying opportunity for my portfolio today.

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 assessed. Consider taking independent financial advice.

Zaven Boyrazian owns Anglo Pacific. The Motley Fool UK has recommended Anglo Pacific, Dominos Pizza, and XP Power. 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

Smart young brown businesswoman working from home on a laptop
Investing Articles

These 2 UK shares could help me reach £1,000,000 in my Stocks and Shares ISA

A FTSE 100 compounding machine and a FTSE 250 value stock are the UK shares Stephen Wright thinks could help…

Read more »

Middle-aged Caucasian woman deep in thought while looking out of the window
Investing Articles

If I’d invested £1,000 in Lloyds shares at the start of the year, here’s what I’d have now

The stock market is unmoved, but Stephen Wright thinks last year’s record profits might give Lloyds shares a long-term boost.

Read more »

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

I’ll snap up shares in this growth stock in March if others don’t get there first

This Fool says shares in this growth stock are stable, full of profit, and might be undervalued. But there are…

Read more »

Rainbow foil balloon of the number two on pink background
Investing Articles

My 2 top energy investment trust picks for a passive income

I'm aiming to buy more of these investment trusts for a passive income and the reasonably stable energy sector returns…

Read more »

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

5.5% dividend yield! Shares like these could be great for my retirement

Oliver Rodzianko thinks this company with a stellar dividend yield could be very useful when looking for income from his…

Read more »

Investing Articles

Should I buy this FTSE 250 stock as it soars back to the FTSE 100?

This FTSE 250 stock has rallied following its pandemic woes. This Fool thinks now could be a good time to…

Read more »

Businessman use electronic pen writing rising colorful graph from 2023 to 2024 year of business planning and stock investment growth concept.
Investing Articles

How I’d aim to transform an empty Stocks & Shares ISA into £1m of wealth!

There's never a better time to start investing in a Stocks and Shares ISA than today. Here's how I'd aim…

Read more »

Close up of manual worker's equipment at construction site without people.
Investing Articles

Investing £14,708 in this FTSE 100 stock could earn me £1,000 per year in passive income

Is a CMA investigation into anticompetitive practices the cloud cover Stephen Wright needs to start buying shares in a FTSE…

Read more »