The stock market crash offers a once-in-a-lifetime opportunity for investors to buy brilliant UK shares at bargain prices. Market crashes are nothing new, of course. But the slump of late February and early March means that many great UK shares offer historic value for money.
If you’re unsure as to what stocks to buy, though, well you’re in luck. There’s a wealth of information out there from experts like The Motley Fool to help you build a winning portfolio of UK shares. I’d like to fill you in on one of the excellent cut-price stocks I have my eye on right now. I think it could help you get rich and possibly even make a million.
Silver prices are rocketing!
I believe that Hochschild Mining (LSE: HOC) has the words ‘millionaire maker’ stamped all over it. Why? It’s a major player in the production of silver and is thus well placed to ride the booming metal price over the next several years.
Some would actually say that Hochschild is one of the better stocks to buy if you want to get access to precious metals. Both gold and silver are rocketing in value right now and the latter just hit seven-year peaks above $23 per ounce. But silver’s gains have been much less impressive than those of gold over the past year. And this means that it has much more scope to rip higher from now on, supercharging Hochschild’s profits in the process.
How high can silver go? Well the boffins at Citi expect the shiny commodity to hit $25 by the middle of next year. A dreaded mix of macroeconomic and geopolitical problems (trade wars, Brexit, a Covid-19 hangover and the like) is likely to keep investment demand for the metal rising. And industrial demand for silver should pick up steadily in the next year or so as the global economic recovery kicks in.
One of the great dividend stocks to buy right now
These factors make Hochschild a terrific growth stock to buy today. City analysts expect earnings here to fall around 45% in 2020 because of Covid-19-related production stoppages. They think that the company will rebound with an increase of round 330% in annual earnings in 2021, though.
As a consequence, dividends are expected to rocket, too. An annual payout of 2.2 US cents per share that brokers project for this year is expected to surge to 3.7 cents in 2021. This means that an inflation-beating yield of 1% marches to 1.6% for next year.
These are not the biggest dividend yields out there, sure. But the likelihood of rocketing silver prices, and thus Hochschild’s earnings, over the next few years means that dividends can be expected to keep on booming. In my opinion Hochschild is one of the best stocks for income chasers to consider buying today. And a forward price-to-earnings (P/E) ratio of just 14 times for 2021 suggests impressive value for money.
Markets around the world are reeling from the coronavirus pandemic…
And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.
But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.
Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…
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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.