6% dividend yields! 2 cheap UK shares I’d buy to protect myself from a no-deal Brexit

Are these two UK shares too cheap to miss? With a no-deal Brexit possibly approaching, I’d happily buy them for my Stocks and Shares ISA today.

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The chances of a no-deal Brexit seem to be growing by the day. By extension, the possibility of significant long-term economic damage to the domestic economy is rising as well. It’s important that UK share investors need to give the issue significant consideration when building their share portfolios.

Here are two UK shares I’m thinking of buying for my ISA as the threat of a no-deal Brexit grows.

A top UK share for retail lovers

The impact that a no-deal Brexit would have on broader consumer spending patterns makes B&M European Value Retail (LSE: BME) a great buy for a disorderly EU withdrawal.

Revenues soared more than 25% in the six months to September as Covid-19 turbocharged trade at the low-cost retailer. It’s possible that B&M (like the broader retail sector) could take a hit if Brexit trade disruption causes supply issues. Still, a long-term coronavirus-related economic hangover — coupled with a hard Brexit — would likely offset the costs as demand for its goods would inevitably soar.

I’m also encouraged by B&M’s energetic store expansion scheme that’ll allow it to exploit this landscape to the fullest. The UK share expects to open between 30 and 35 net new B&M-branded stores in this fiscal year (to March 2021) alone. And it will cut the ribbon on 16 net new Heron Foods shops as well.

Today, B&M trades on a forward price-to-earnings-growth (PEG) ratio of 0.1. This is well below the widely-accepted bargain benchmark of 1 and below. And it makes the FTSE 100 stock one of the best-valued British stocks that money can buy, I feel.

The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.

6% dividend yields

Power station builder ContourGlobal (LSE: GLO) is another UK share that should thrive despite the impact of a no-deal Brexit. It has a number of weapons in its arsenal that will allow it to shrug off an economically punishing EU withdrawal as well as a painful and prolonged Covid-19 downturn.

Firstly, ContourGlobal’s in the energy-creating business. This makes it one of the best defensive shares out there — our need to keep the lights on, the kettle boiling and the radiators warm remains constant during economic booms and busts.

Secondly, this UK share operates more than 100 sites spanning 18 countries across The Americas, Africa and Europe. This broad geographic footprint will help insulate it from any possible Brexit turbulence on both sides of the English Channel.

And thirdly, global power demand is set to keep exploding, whatever happens on the Brexit front. Total worldwide energy usage is set to rocket by 50% over the next 20 years. And this share is in the box seat to benefit from the estimated $9trn of investment that’s needed to meet this demand.

Today ContourGlobal also trades on a forward PEG ratio of 0.1. And at current prices, the FTSE 250 stock carries a mighty 6% dividend yield too. For those seeking hot profits growth and big dividends in a post-Brexit world, I think this share’s hard to beat.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended B&M European Value. 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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