The Motley Fool

The best shares to buy now for a Stocks and Shares ISA

Image source: Getty Images

With the Stocks and Shares ISA deadline fast approaching (the last day for contributions is 5 April), I have been searching for the best shares to buy now for my portfolio.

Here are five shares that I would buy, intending to hold for the foreseeable future.

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...

Best shares to buy now

I think one of the best investments on the market is Games Workshop. This tabletop gaming company has achieved solid results for its investors over the past few years. Its devoted customer base and high margins have enabled the business to generate substantial profits and profit growth. I think that makes it the perfect Stocks and Shares ISA candidate because investments held inside one of these tax-efficient wrappers do not attract tax on income or capital growth.

That said, the group’s growth is not guaranteed indefinitely. By increasing prices too much or not catering to hobbyists demands, Games Workshop’s sales could begin to fall. Still, I would buy the stock today despite these risks.

Two income investments that I believe are some of the best shares to buy now for a Stocks and Shares ISA are Phoenix group and M&G. These blue-chip stocks support some of the highest dividend yields in the FTSE 100 at around 6.5% and 8%, respectively. However, these figures are based on forecasts, and neither company is guaranteed to hit either target.

That said, I would buy the companies today for their income potential. Both organisations are highly cash generative and have substantial profit margins. This should bode well for future dividend growth.

These businesses might not be suitable for all investors, however. Financial companies like M&G and Phoenix can be challenging to understand, and we never really know what’s on their balance sheets. There’s always going to be the risk they’re involved in something neither investors, nor management understand, as many investors found out to their detriment in 2008.

Stocks and Shares ISA buy

As well as the companies outlined above, I would also buy a handful of recovery stocks for an ISA to profit from the economic reopening over the next few months and years. In my opinion, the best firms to play this theme are blue-chips IAG and BP. I would buy both of these organisations because I believe they have very different qualities.

IAG should benefit from a recovery in global air travel, although it could take several years for the industry to recover 2019 levels of activity. Meanwhile, rising economic activity generally translates into higher demand for electricity and energy. That could help BP’s recovery over the next few years. 

However, these investments might not be suitable for everyone. IAG is struggling with high levels of debt, and there’s no guarantee the company will ever be able to return to its former glory. And BP faces a challenging few years as the world moves away from hydrocarbon energy sources such as coal and oil towards renewable energy

I think the opportunities facing these businesses more than outweigh the challenges. That’s why I would buy them for my ISA today. 

As well as the stocks outlined above, I've also been considering the business below as a potential ISA investment.

The high-calibre small-cap stock flying under the City’s radar

Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…

You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.

And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.

Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.

But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before!

Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!

Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Games Workshop. 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.