Right now, a lot of ‘old ‘school’ UK stocks are soaring. Just look at the share prices of stocks like Lloyds, GSK, and Vodafone – they’re all up double-digit percentages year to date.
So what on earth’s going on here? And what are some good UK stocks to consider buying now?
Changing market dynamics
I think there are a couple of things going on in the market right now. One thing I’ve observed is that investors are starting to pay more attention to companies that are relatively immune to artificial intelligence (AI) disruption. I believe that investors are starting to reward these kinds of companies with higher valuations.
Some examples of companies here include National Grid, Unilever and Diageo. All have seen their share prices jump over the last month.
I also think investors are suddenly focusing more on value and dividends (perhaps in anticipation of a tech meltdown). Recently, growth and momentum stocks have taken a backseat.
This explains the rise in stocks such as Lloyds, GSK, and Vodafone. All started the year with relatively low valuations and solid dividend yields.
UK shares to check out now
Now, there’s no guarantee that these trends will continue. Investors could easily switch back to focusing on growth stocks in the months ahead.
However, one UK stock I like the look of today is banking powerhouse Barclays (LSE: BARC). It trades on a low forward-looking price-to-earnings (P/E) ratio of nine and sports a dividend yield of around 2%.
One reason I’m bullish on this bank is that it has a formidable investment banking division. And 2026 is shaping up to be a big year for sector activity (IPOs, M&A activity, etc).
Another is that it has exposure to wealth management and trading. So it’s well positioned to benefit from both high equity markets (high assets under management) and volatile equity markets.
Of course, it’s not perfect. Like other banks, it’s vulnerable to an economic slowdown.
I think it’s worth a closer look however. Right now, the share price trend is up.
Big dividends on offer
I also like the look of asset manager M&G (LSE: MNG). It has a P/E ratio of 11 and sports a dividend yield of around 6.8%.
This company has quite a bit of momentum at present – in November, it advised that in the third quarter of 2025, its asset management division saw £1.5bn of inflows from clients.
“Despite a volatile macroeconomic environment, we are seeing growing momentum across M&G, as we continue to execute on our strategy and deliver strong long-term value to both clients and shareholders,” commented CEO Andrea Rossi at the time.
One thing it has going for it is that it has quite a bit of exposure to alternative asset classes such as real estate and private credit. These asset classes are in demand right now as investors are looking to diversify their portfolios.
Now, obviously a meltdown in the financial markets is a risk with this stock. This scenario would see assets under management and fees drop.
Taking a long-term view, this company appears well positioned for growth. I think it’s worth considering while it’s cheap.
