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7% dividend yields! 2 UK shares I’d buy as vaccine news boosts new bull market hopes

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UK share markets continue to tear higher on Tuesday following news of a possible Covid-19 vaccine breakthrough. As I type, the FTSE 100 is continuing its northwards ascent and just struck its highest since late June, just shy of 6,300 points.

I recently explained why the new bull market could, or could not, be upon us. UK share prices will keep rising should detailed data from Pfizer’s much-awaited wonder vaccine meet expectations. But they could easily reverse again should news flow disappoint in the days and weeks ahead.

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Looking on the bright side

Let’s say however that one is of the ‘glass half full’ persuasion, and they reckon this is the beginning of the new bull market. Or they’re looking for stocks to buy when data confirms that Pfizer’s drug is indeed the miracle cure we’ve been waiting for. What UK shares should one consider buying today?

Here are several top UK shares that’d be on my watchlist today. I think they could help Stocks and Shares ISA investors like me make a packet as the global economy recovers, corporate profits rebound, and share prices march higher.

A UK share I think could soar

News of a possible vaccine has been particularly good to the share prices of embattled travel stocks. Take Wizz Air (LSE: WIZZ) for example. Fresh gains on Tuesday mean the Hungarian airline’s now recovered all of the ground it lost when the stock market crash kicked off in late February. I’m not surprised to be honest.

This UK share’s wide wingspan across Central and Eastern Europe makes it a great play on continental emerging markets where robust economic growth should deliver brilliant long-term profits growth. And what’s more, the airline has one of the industry’s strongest balance sheets. This will allow it to exploit the recovery much faster than many of its rivals.

Finally, Wizz Air’s focus on the low-cost segment of the travel market should allow its bottom line to recover more quickly than those of airlines which offer more expensive services. The European and global economies won’t return to pre-coronavirus levels overnight, of course. And so consumer spending power could remain weak for some time.

7% dividend yields

I’d also buy ITV (LSE: ITV) shares in my Stocks and Shares ISA for the new bull market. The FTSE 250 company stands to gain from a Covid-19 vaccine for a couple of reasons. Firstly, it can expect a sharp recovery in ad revenues as companies bolster their market budgets to exploit any economic upturn. And secondly, the broadcaster’s production schedule can get back to normal. Through ITV Studios it has one of the rising forces in the global market television production market too.

One final thing that makes ITV such a great buy today. For 2021, this UK share trades on a dirt-cheap price-to-earnings (P/E) ratio of 7 times. And it boasts a dividend yield north of 7% too. For value chasers, I think the Footsie firm is an irresistible buy.

A Top Share with Enormous Growth Potential

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV and Wizz Air Holdings. 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.