Sick of the daily grind? Want to have more financial independence to allow you to live your dreams? It’s not the stuff of fantasy. Just ask the growing number of ISA millionaires who have been able to retire early from the 9-5 through sensible share investing.
There’s a lot of macroeconomic and geopolitical uncertainty out there. Stock markets remain extremely volatile as fears over the consequences of Covid-19, as well as growing trade tensions between the US and China, dominate thoughts concerning global economic growth. These major issues don’t necessarily have to derail your quest to avoid financial independence, though. There’s plenty of stocks out there that should still help you enjoy a very healthy income from your investment portfolio.
It’s obvious just by the name why Greencoat Renewables could be a mighty growth share in the years to come. Efforts to cut carbon emissions from lawmakers all over the globe have stepped up several notches in the past couple of years. It’s likely that the Covid-19 crisis will hasten the rush towards decarbonising the environment, too.
Greencoat owns a number of wind farms in Ireland. It recently extended its operations to mainland Europe by acquiring a 51.9MW portfolio of French wind farms in March, too. It trades on a forward price-to-earnings ratio of 17 times, which is good value in my opinion, given its terrific long-term growth outlook. A dividend yield north of 5% puts a cherry on the cake.
A defensive hero
H&T Group is another share that could help you achieve financial independence. It’s one that should suit even those investors terrified of a prolonged economic meltdown. Why? This AIM company operates more than 250 pawnbroking shops the length and breadth of the UK. It can expect demand for its services to rocket as Britons’ finances unfortunately come under increasing strain.
It’s why, like Greencoat Renewables, City analysts expect annual earnings to keep growing through to the end of 2021 at least. And it leads to expectations of further dividend rises, too, meaning H&T carries a bulky 5.2% yield today. A forward P/E ratio of 7 times fails to reflect the company’s excellent defensive qualities, in my opinion.
Another key to financial independence
Those seeking to achieve financial independence sooner rather than later should also look closely at Warehouse REIT. This company operates warehouse spaces that are in hot demand from retailers and fast-moving consumer goods companies for their e-commerce operations.
Online shopping is still a relatively small part of the larger retail pie and so has much more space to grow. And the Covid-19 crisis has given the e-commerce outlook another shot in the arm, potentially adding billions to the value of total transactions in 2020 alone. Warehouse REIT is in one of the box seats to ride this trend yet it trades on an undemanding forward P/E ratio of just 17 times. Combined with a bulky 6% dividend yield I reckon it’s another top stock for long-term investors.
Markets around the world are reeling from the coronavirus pandemic…
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Warehouse REIT. 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.