The Motley Fool

My 2 best shares for 2021

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Dial being turned up to 'high'
Image source: Getty Images.

As the New Year begins, it seems like the perfect time to look for prospective investments. With Covid-19 lockdowns and vaccines still dominating, looking at the year ahead is more difficult than ever. The world will hopefully look very different in 12 months time. With all this in mind, I consider what I think are the two best shares for my portfolio in 2021 right now.

What I consider to be the ‘best shares’

To clarify, exactly what constitutes the ‘best shares’ of 2021 is subjective. Here I don’t name the two stocks I think may have the largest overall growth. Personally, I think the coming year is just too risky for that.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

For my own criteria, I always prefer investments that pay out dividends as well capital gains. That said, I am looking for a decent returns of course. In these uncertain times the best shares for me are those I think will minimise risk, while maximising potential gains.

BP

With the market the way it is, BP (LSE: BP) is my number one choice right now. I believe it has been undervalued because of last year’s low oil prices, but this could be set to change.

The crude market was already in a precarious position when Covid-19 hit. A large amount of overcapacity had oil prices on the precipice of collapsing. When the coronavirus took over the world, it was the last straw for crude.

However, as the vaccines starts to reduce Covid-19 fears through 2021, oil should benefit. In addition, the world’s great oil producers (OPEC and Russia particularly) are likely to cut production to bolster prices. Just today, Saudi Arabia announced its intention to do just that.

With its price this low, BP is currently yielding a dividend of about 8%. For me this is too good to turn down, and makes it one of my best shares for 2021.

AstraZeneca

The second of my best shares for 2021 is the pharmaceutical giant AstraZeneca (LSE: AZN). Naturally, this is linked to the Covid-19 vaccine, but only slightly.

AstraZeneca is not making any profits from its vaccine directly, so the impact on the bottom line will be negligible — at first. However, it does seem ever more likely that a vaccination programme will continue for a long time. In this case, AstraZeneca should benefit for years to come.

Similarly, the problems of Covid-19 are likely to bring greater attention to pandemic prevention and vaccination programmes. I think the pharmaceutical industry as a whole will benefit in 2021.

I have one major caveat for AstraZeneca though – the risk of the vaccine programme going wrong. While vaccines are being produced and distributed on schedule, everything will be fine. Given the complexities of this situation, it is not impossible some things could go wrong with the vaccination programme. If that were to happen, I think fear would weigh on Astra’s price.

Despite this risk, I think AstraZeneca is still a solid choice as a long-term investment. I believe its price is cheaper today than it will be in the months to come, making it the second of what I consider the best shares for 2021.

5 Stocks For Trying To Build Wealth After 50

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…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Karl has shares in BP and AstraZeneca. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.