3 Shares For Your 2015 ISA: WM Morrison Supermarkets PLC, Antofagasta plc And Taylor Wimpey plc

Here’s why you should consider WM Morrison Supermarkets PLC (LON: MRW), Antofagasta plc (LON: ANTO) and Taylor Wimpey plc (LON: TW).

| 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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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.

When it comes to using up our annual ISA allowance, where should we allocate the £15,240 we’ll be able to invest tax-free from 6 April? It can pay to have a diversified portfolio, so here are three candidates from three different sectors:

Morrison

The big uncertainty about Wm Morrison (LSE: MRW) was always going to be the size of its dividend cut — even when the old board insisted they had no plans for it, the smart money knew it had to happen. Morrison has always been slow at the heels of Tesco and Asda, and was once again trying to follow them into convenience stores when the big players had moved on to the next strategy of cost-cutting and price-warring. Incoming boss David Potts has seen this and the company is to slow down its rollout “significantly“.

Meanwhile, new forecasts suggest a dividend yield of 3.9%, although it would be covered only 1.5 times by forecast earnings and some will fear further cuts in the ongoing battle with Aldi and Lidl. But with the 203p shares now on a P/E of under 14 on 2017 estimates, and with the worst of the uncertainty out of the way, it has to be an ISA possibility now.

Antofagasta

The case for copper miner Antofagasta (LSE: ANTO) is really quite simple — the mining sector is oversold and mining stocks are looking cheap for the long term. Low metal and mineral prices have hurt the sector badly in recent years, but they can’t last forever and miners in good shape should benefit nicely when an upturn comes.

Antofagasta has been seeing steady production — copper output for the full year was down 2.3% due to lower grades, but Q4 saw a 10.8% rise on the same period a year previously. And with EPS forecasts for the next two years dropping the P/E to a little over 11 by 2016, I see a lean and fit long-term bargain here.

Taylor Wimpey

With housebuilder Taylor Wimpey (LSE: TW) I’m seeing a sector that was grossly undervalued during the recession, but which has yet to get back to its full potential. Full-year results were positively glowing, with home completions up 6.5% and an average selling price up 11.5%. The firm is still oozing cash, with a further 7.68p per share to be handed back to shareholders in July, and yields are forecast at 6.1% and 6.6% for the next two years.

And even though the share price has more than six-bagged to 149p since 2010’s low point, we’re still looking at a forward P/E of only a little above 10 this year, dropping to 9 for 2016.

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.

Alan Oscroft has no position in any shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Just released: Share Advisor’s latest ‘Hold’ recommendation [PREMIUM PICKS]

In our Share Advisor newsletter service, we provide buy, sell, and hold guidance for our universe of recommendations.

Read more »

Investing Articles

Investing £5 a day could help me build a second income of £329 a month!

This Fool explains how £5 a day, or one less takeaway coffee, could help her build a monthly second income…

Read more »

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

2 FTSE income stocks investors should consider buying in April

Income stocks are a great way to build wealth. Our writer details two picks she believes investors should consider snapping…

Read more »

Investing Articles

What might the 5-year price chart tell us about BT shares?

Christopher Ruane considers what clues the long-term performance of BT shares might offer him about business performance and whether to…

Read more »