There’s less than a month to go to make the most of ISA allowances for the 2020/2021 tax year. Investment products like the Stocks and Shares ISA are, in my opinion, great ways to try and make money with UK stocks without having to pay huge sums to the taxman. I use every opportunity to utilise as much of that £20,000 annual allowance as I can.
Of course, investors don’t have to go out and buy UK shares before that 5 April cutoff date. It’s enough just to stick some money in that Stocks and Shares ISA with a view to using it later. But why delay when there are so many brilliant cheap British stocks to choose from today, I say?
Here are two I’d happily add to my own shares portfolio right now. What’s more, these particular British stocks carry huge dividend yields as well.
I think Sylvania Platinum (LSE: SLP) is a great ISA pick for right now. Demand for precious metals is strong when the global economy struggles, as well as during the early part of the economic recovery as auto sales pick up. This allows share pickers to hedge their bets to some extent. I expect car industry consumption to remain strong for the next decade at least too, as green legislation requires more and more metal to be used in exhaust systems to reduce emissions.
It’s possible auto demand for Sylvania Platinum’s product might fall sharply from the 2030s. This is because manufacturers are switching en masse to the production of electric vehicles from the end of this decade. These sorts of vehicles don’t have exhaust systems that are jammed with platinum group metals (PGMs) of course.
Still, at current prices, I believe Sylvania Platinum might be considered too cheap to miss. The UK mining share trades on a rock-bottom forward price-to-earnings (P/E) ratio of 5 times. It packs a tasty 5% dividend yield as well. This figure beats the broader average of 3.5% for British stocks by a comfortable margin.
Another top UK value share
Warehouse REIT (LSE: WHR) also boasts the sort of all-round value I think would appeal to ISA investors like me. It trades on a price-to-earnings growth (PEG) ratio of 0.7 for the upcoming financial year (to March 2022). A figure below 1 suggests a UK stock might be undervalued. On top of this, the property play carries a meaty 5.1% dividend yield.
The breakneck growth of e-commerce means warehousing and logistics space is at a premium. This is why City analysts think earnings at Warehouse REIT will rise around a third year-on-year in financial 2022. Fresh financials this week from Tritax Big Box REIT reveal how strongly demand for these sorts of properties is climbing. It said it enjoyed record demand in 2020 and that operating profit consequently rose more than 20% from the prior year.
A long period of subdued consumer spending, allied with rising concerns over sustainability, might hit e-tail growth in the future. This could naturally dent demand for Warehouse REIT’s facilities. But I still think the UK property share is worth a close look at current prices.
Royston Wild owns shares of Tritax Big Box REIT. The Motley Fool UK has recommended Tritax Big Box REIT and Warehouse REIT. 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.