Stock markets are in meltdown and many investors have seen their investment portfolios sink in value. You might be one of them. I am, but I’m not panicking. I still believe that the carefully-selected shares that I own will allow me to make big profits and possibly retire early.
The macroeconomic outlook is chilly at best, but significant downturns in the global economy are nothing new. Provided that you’ve selected your shares with due skill and attention then your investment portfolio should still generate some great returns for you.
Remember that the key to successful share investing is to buy shares with a view to holding them for five, 10, 20 years, perhaps more. These sort of timescales allow your investments to recover from temporary macroeconomic turbulence, and with a bit of luck generate some life-changing profits. Despite the threat posed by Covid-19 over the short-to-medium term, too, there remains an abundance of shares that could help you to retire early and/or realise your other goals.
Want to retire early?
One of these stocks attracting my attention is Keller Group (LSE: KLR). It’s particularly great for those looking to squeeze every ounce of value out of their investments. At current prices around 660p per share it trades on a forward P/E ratio of 11 times and carries a meaty 5% dividend yield, too.
Keller Group could see business suffer in the near term as the global construction industry shrinks. However, the small cap — which describes itself as “the world’s largest geotechnical contractor” — can rely on the niche nature operations as well as its scale to help it navigate the worst that a slowing world economy will cause. It also has a £1bn-plus order book to help support it in the immediate future.
Keller could receive extra support from another source. The tough economic backdrop means that new infrastructure stimulus in some of its major regions like North America could be introduced. This could boost demand for its high-tech solutions. And I’m confident that it should ride the economic recovery when it eventually comes to huge success. It’s a great buy for anyone looking to retire early.
Another 5% dividend yield
Mears Group (LSE: MER) is another share that should navigate the global economic cooldown than most. Why? It provides a variety of services that we cannot do without irrespective of broader conditions.
But forget about its defensive characteristics for a second: the small cap’s expertise in social care and housing services put it in great shape to ride two significant phenomena in the years ahead. Increased social housing is needed to meet the growing population. And exploding demand for care services amid a rapidly-ageing population also bodes well for future profits.
I don’t think its excellent defensive characteristics nor its exceptional structural opportunities are reflected at current prices of 155p, though. Mears carries a forward P/E ratio of below 8 times. It boasts a chunky 5.2% dividend yield as well. This is a share that has all the tools to make its investors big returns and possibly retire early. And I think it’s brilliant buy for both dividend and value investors.
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 has no position in any of the shares mentioned. 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.