The Motley Fool

I bought this 4.5% dividend stock for my ISA. I reckon it’s a top buy for March

Image source: Getty Images.

Intensifying fears over the coronavirus are weighing heavily on investor confidence today. Share bourses across the globe are tipping lower. The fast-developing situation means it’s anyone’s guess how bad the washout will prove to be.

That’s no reason to pull up the drawbridge though. Warren Buffett’s famous advice that share pickers should “be fearful when others are greedy and greedy when others are fearful” springs to mind right now. It’s a reason why I just tipped Wizz Air as a great buy following heavy weakness in Monday business.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

I also reckon major brickmaker Ibstock (LSE: IBST) is a top stock to buy today. The price fall here has been much more modest compared with many other shares, like the airlines and shipping operators. With fresh financials just around the corner, I reckon a spurt to fresh record highs might be just around the corner as well.

Resilience in tough markets

I own shares in Ibstock. As an owner of housing shares Barratt Developments and Taylor Wimpey too, I considered it to be a great play on the UK’s chronic homes shortage and the need for Britain to supercharge building rates to keep up with demand.

The FTSE 250 firm’s latest January update was quite impressive. Then it said total 2019 revenues were up by “mid-single digits for the full year,” a consequence of better clay brick prices, rising volumes for some of its key concrete products, and the impact of the Longley Concrete acquisition made last summer.

Okay, it’s not a spectacular result at headline level. But considering the massive political and economic uncertainty that has smacked construction rates more recently, Ibstock has performed quite robustly. It’s a result, in fact, that reflects the country’s structural brick shortage that’s kept prices of the building blocks creeping higher.

Better news to come?

In last month’s release, Ibstock struck a note of caution over its near-term profits prospects. It warned that “the lower levels of residential construction activity in the second half of 2019 have created a more subdued market backdrop as we enter 2020.”

I reckon the company might be more optimistic in preliminaries scheduled for Tuesday, 3 March  though. A string of homebuilders have put out perky trading releases since the turn of 2020. And a couple of them, such as Vistry Group and The Berkeley Group, have spoken about their bright production plans too (the latter plans to boost its prior completion targets by 50% over the next six years).

Expect, then, for Ibstock’s share price to gain more ground in the sessions ahead. Its forward P/E ratio of 16.1 times is quite cheap given its robust long-term profits outlook, in my opinion. And a 4.5% corresponding dividend yield beats the UK mid-cap average of 3% by quite a margin, making it an attractive target for income seekers.

Ibostock said last month that “the market fundamentals for new build housing in the UK remain robust, with a structural deficit of housing, low interest rates and unemployment, and the Government’s Help-to-Buy scheme in place until 2023.” This is a share I plan to hold for many years to come.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Royston Wild owns shares of Barratt Developments, Ibstock, and Taylor Wimpey. The Motley Fool UK has recommended Ibstock. 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

The renowned 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 enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.