Stock market recovery: 3 UK shares with 5%+ dividend yields I’d buy for the new bull market!

I reckon these top-quality UK shares could help me get rich during the eventual bull market. They offer gigantic dividend yields too!

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UK share prices are edging higher again during the first trading sessions of December. The FTSE 100’s moving back above the psychologically-critical 6,400-point marker in Wednesday business. It could pave the way for a healthy Santa Rally in the days and weeks ahead.

I’m not pinning my hopes on the recent share rally continuing, though. News flow surrounding both Covid-19 and Brexit remain extremely fluid. Investor confidence could easily either fizz or flounder before the Christmas break.

Either scenario won’t impact my own investment strategy too much, though. I’ll continue investing in my Stocks and Shares ISA whatever happens.

3 UK shares with BIG dividends on my ISA watchlist

I’m confident that share prices will recover and recover strongly at some point. And I’ve already begun building my UK shares portfolio to capitalise on the eventual bull market. Here are three other top dividend-paying stocks I’m considering buying for my Stocks and Shares ISA today.

#1: LXI REIT

Real estate investment trust (or REIT) LXI REIT is a great buy for an economic recovery, I feel. Its broad range of properties (like hotels, car showrooms, offices, gyms and car parks) spans a range of highly-cyclical sectors. But its exposure to more defensive segments like care homes and discount retail offers some security in the event of a lumpy rebound in the UK economy. This UK share also remains on the hunt for acquisitions to allow it to capitalise on the eventual recovery. LXI REIT carries a chunky forward dividend yield of 5% at current prices, making it a great buy for income investors like me.

A person holding onto a fan of twenty pound notes

#2: Warehouse REIT

Another big-yielding property stock that could surge in the new bull market is Warehouse REIT. This share is one of the few to have risen in 2020 during the coronavirus crisis. This is because its exposure to the e-commerce sector has paid dividends during that crisis. And the company — which provides warehouses to major blue-chip companies like Amazon and Hermes — will benefit from the improvement in consumer confidence as the economy improves. Today, Warehouse REIT carries a meaty forward dividend yield of 5.2%.

#3: Devro

Sausage casings maker Devro is a brilliant buy for dividend investors, I feel, whatever their attitude to risk. Trading at the foodie has remained robust in 2020 despite the impact of Covid-19. And it can expect trading to pick up significantly during a post-coronavirus economic recovery. Demand for its products will rise in Europe as sales to the food service channel improve. The UK share can expect ripping emerging market sales to ratchet up a gear or two as well. Today Devro trades on a price-to-earnings (P/E) ratio of just 9 times. It carries a monster 6% dividend yield as well. Consequently I think it’s a perfect pick for value investors.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Devro and Warehouse REIT and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 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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