Are you looking to go shopping for bargains following the stock market crash? Share indexes might be off their multi-year lows but there remain plenty of plenty of excellent – and cheap – dividend stocks just waiting to be snapped up.
It’s possible they’ll become even cheaper given the strong odds of a second stock market crash, too. But I wouldn’t waste a minute before buying in. Here are some of the best UK stocks that are too good to miss at current prices, starting with Bloomsbury Publishing.
The book publisher suffered recently as mass bookshop shutterings damaged sales of its wares. But I’d implore you to look past these temporary difficulties and consider its excellent long-term potential. The owner of the Harry Potter franchise can always rely on the boy wizard to drive sales of its books. And its more-recent expansion into digital publications to academics provides plenty of profits potential, too. Right now Bloomsbury carries a chubby 4% dividend yield.
7.5% dividend yields!
You might want to give Clipper Logistics a spin, too. The recent stock market crash leaves the owner and operator of distribution and warehouse spaces with a 3.7% dividend yield for the current fiscal year. I’d buy it today partly because of that inflation-beating yield, sure. But I’d hold it for years given the huge growth potential of the internet shopping sector.
Sabre Insurance Group is another great dividend stock for these uncertain times. History shows us that profits at general insurance providers tend to be quite resilient even during economic downturns. Car insurance specialists like this tend to be particularly well-protected, too, owing to the legal requirement for drivers to get themselves covered. The forward yield at Sabre, incidentally, sits at a whopping 7.5%.
More dividend stocks I’d buy after the market crash
PZ Cussons still trades much cheaper than its pre-crash levels. I think the market is missing a trick here. Like Sabre, the seller of Imperial Leather and Carex soaps can rely on the essential nature of its products – not to mention their brilliant brand power – to drive profits despite the fallout of Covid-19. In fact, demand for its hygiene products are likely to rise from previous levels in the post-pandemic world.
The yield at Cussons sits at around 4.5% for 2020. And it’s not the only UK-quoted fast-moving consumer goods (or FMCG) giant worthy of serious attention following the stock market crash. I’d also buy Tate & Lyle at current prices as it carries a yield in line with that of the aforementioned soapmaker.
Food and food ingredients manufacturers like this are among the safest of safe havens. Demand for their goods remains broadly resilient in good times and bad, providing them with the sort of earnings visibility to keep growing dividends. And FTSE 100 share Tate & Lyle has a growing appetite for acquisitions to give its long-term profits opportunities a significant shot in the arm.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of PZ Cussons. The Motley Fool UK has recommended Clipper Logistics. 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.