While some stock investors panic, others sense a prime investing opportunity. It’s human nature to be concerned when you see the value of your investments, like your Stocks & Shares ISA, falling.
But, in challenging times like these, it’s important to remember you only lose money when you actually sell your investments when they’re down. With the right investment strategy, it’s likely you’ll see the value of your shares recover over the long term, and then some.
With this in mind, I reckon it’s a great idea for ISA owners to go dip buying on stock markets. There’s an abundance of terrific shares that have plummeted in value. Despite the Covid-19 crisis, they remain in great shape to deliver terrific returns. One of these is PayPoint, whose technologies are a critical tool for many convenience store operators.
Its terminals are selling like hotcakes because of their broad range of functions, from allowing customers to send parcels and pay bills, to letting retailers register transactions and run their stores through a dedicated mobile app. Demand for its PayPoint One systems is still exploding. What’s more, the business has a great chance to steadily increase its service revenues as it develops the services its technologies offer.
Right now, PayPoint trades on a forward P/E ratio of just 14 times while boasting an eye-popping 6.5% dividend yield too.
Sweet as sugar
I believe Tate & Lyle’s another top buy for ISA investors. Its major role in the defensive food production sector should allow it to avoid the worst of any deterioration in the broader economic environment over the coming decade and to keep growing profits.
This sort of resilience during all phases of the economic cycle has made it a winner with dividend investors over recent decades. It hasn’t cut dividends for at least three decades. Notably, it hasn’t announced plans to reduce shareholder payouts, despite the Covid-19 crisis battering the dividend policies of many other businesses.
Right now, Tate & Lyle sports a dividend yield of close to 4.5% as well as an undemanding forward P/E ratio of 14 times. It’s a great all-rounder for ISA investors, in my opinion.
Another ISA star
The products over at PZ Cussons can be considered indispensable too. In fact, the branded soaps and shower gels released under its Imperial Leather, Carex and Original Source banners (among others) have surged in popularity as the coronavirus has spread across the globe.
PZ Cussons is unlikely to see demand for its hygiene products slacken off any time soon either. The Covid-19 outbreak will change the world in many ways. A desire to live cleaner and healthier lives is one of these. It’s a trend that is already feeding into the household goods giant’s bottom line.
Right now, Cussons carries a 4.5% dividend yield for the current fiscal year. Its P/E ratio of around 17 times isn’t as attractive, sure. However, I believe a firm with such terrific defensive qualities merits at least a small premium. I’d happily buy it for my own ISA.
With global markets in turmoil as the coronavirus pandemic tightens its grip, turning to shares to generate income isn’t as simple as it used to be…
As the realities of ‘life under lockdown’ begin to bite, many of the stock market’s ‘go-to’ high-yielding companies have either taken an axe to their dividend pay-outs… or worse, opted to suspended them altogether – for the near-term at least.
With so many blue-chip and mid-cap companies scrambling to hoard cash right now, where are we income investors to turn for decent yields?
Fortunately, The Motley Fool is here to help…
Our analyst has unearthed what he believes could be a very attractive option for income- seeking investors – a company that, in his view, boasts a ‘reliably defensive’ business model, combined with a current forecast dividend yield of 4.2% to boot!*
But here’s the really exciting part…
This business even has form in riding out this kind of situation, too… having previously increased sales and profits back in 2008 and 2009 when the world was gripped in the deepest economic crisis since the Great Depression.
*Please be aware that dividends are variable and not guaranteed.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of PayPoint and PZ Cussons. 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.