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Attention ISA investors! I think these dividend-paying UK shares have multi-bagger potential

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It’s clear the Covid-19 crisis has the capacity to damage global growth for years to come. But this doesn’t mean UK share investors should pull up the drawbridge and stop buying stocks.

There are still plenty of top-quality UK shares that should deliver spectacular profits growth in the coming years. Many of these have the potential to become multi-baggers too (these are stocks that provide returns several times larger than their original cost).

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Box up a beauty

Tritax Big Box REIT (LSE: BBOX) is one such irresistible UK share. And it’s a particularly great pick for dividend chasers. Under real estate investment trust rules, the business has to distribute 90% of profits to its shareholders in the form of dividends. And, with e-commerce volumes tipped to explode, investors like myself can expect some pretty chunky payouts in the years ahead.

A survey just released by corporate finance house Clearwater International spells out the bright outlook for Tritax Big Box. This showed revenues among the 21 mid-market internet retailers it questioned had risen 15% since April. Some participants had seen week-on-week sales rocket by as much as 50% too. And, critically, the report showed repeat orders from newly-acquired customers has increased.

As Clearwater comments: “[This] points to longer term revenue growth.” And it naturally bodes well for Tritax Big Box, a provider of large warehousing and logistics facilities to blue-chip companies like Amazon, Unilever and Tesco. Its illustrious list of tenants is another reason why I like this particular UK share as it provides terrific earnings visibility irrespective of broader economic conditions. This is why the property giant’s on course to collect a whopping 99% of rents for the fourth quarter.

Tritax Big Box shares don’t come cheap. At current prices, the FTSE 250 firm changes hands on a forward price-to-earnings (P/E) ratio of 24 times. But I believe this UK share is worth every penny. Besides, a fatty 4% dividend yield for this financial year helps to take the edge off.

Another multi-bagging UK share?

Investors looking for rock-bottom earnings multiples and big dividend yields might be more interested in ContourGlobal (LSE: GLO). Today, the power station developer trades on an ultra-low price-to-earnings growth (PEG) reading of 0.1 for 2020. The company offers up a jaw-dropping 6% dividend yield as well.

Like Tritax Big Box, this UK share can look forward to terrific profits growth during the 2020s. In this case, the bottom line should be driven by rocketing energy demand as global populations rise. The International Energy Agency reckons energy demand will double during the next 10 years.

But this isn’t the only reason why I like ContourGlobal. Its expertise in the fast-growing field of ‘green’ energy should help turbocharge profits growth as well. ContourGlobal estimates the bulk of the $1.5trn that’ll need to be invested in energy supply over the next decade will be dedicated to renewables and low-carbon sources. This is another UK share I’d buy today and hold for years.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild owns shares of Tritax Big Box REIT and Unilever. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Tesco, Tritax Big Box REIT, and Unilever and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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.

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