The ISA deadline is here! 3 penny stocks to buy

Looking to buy UK shares before today’s ISA deadline? Here are a few penny stocks I’d happily buy for my own shares portfolio today.

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.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Fancy investing in some top-quality penny stocks? If you have money that you want to invest as part of this year’s ISA allowance you’d better be quick. The new tax year begins at midnight. Any contribution room left over can’t be rolled over to the 2021–22 tax year.

I certainly wouldn’t suggest rushing out and buying any old UK shares before the deadline. Acting in haste can cost investors a fortune in the long run. Remember that there’s no obligation to invest straight away with the money you’ve parked in an ISA. But those that have done their research might be more confident to splash the cash and not want to waste any time.  

Here are a few five-star penny stocks I think would look good in my own Stocks and Shares ISA:

#1: A penny stock for the newbuild craze

I already own FTSE 100 housebuilders Barratt Developments and Taylor Wimpey in my ISA. This is because the UK (like large swathes of Europe) has a colossal shortage of new homes that means demand will remain strong for many years ahead. Another great way to play this theme is to invest in building product suppliers like SIG as home construction rates will remain strong to meet this shortfall. Finally, this particular penny stock has leading positions in areas like roofing and insulation. Bear in mind, though, that SIG generates around 60% of revenues from mainland Europe. So the spread of Covid-19 in this region poses a significant danger to earnings there.

A pile of British one penny coins on a white background.

#2: Property powerhouse

I also think Hibernia REIT is an attractive penny stock to buy right now. Though let’s get the elephant in the room dealt with straight away: almost all of the company’s Dublin property portfolio comprises office buildings. This could cause a considerable problem as the adoption of more flexible working practices by business takes off. That said, there are still reasons to be bullish about this UK property share. Ireland has a long track record of attracting foreign investment. Inflows could surge too following Brexit as the country is the only European Union member where English is the primary language. All this means that demand for Dublin’s office space could keep climbing over the long term.

#3: Solar surfer

Those that are involved in the production of green energy have an exciting future as lawmakers try to slash their carbon footprints. This is why I think NextEnergy Solar Fund is an attractive penny stock for the next decade at least. This UK energy share operates scores of solar power plants in the UK and a cluster in Italy. Remember that these sorts of ethical shares aren’t guaranteed to deliver monster shareholder returns, however. Building, running, and energy storage costs at solar projects are quite high and this can take a huge bite out of profits, for example. I still think investing in the green revolution is a good idea though. And NextEnergy is an appealing way to do so.

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 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.

More on Investing Articles

Shot of a young Black woman doing some paperwork in a modern office
Investing Articles

With an 8% dividend yield, I think this undervalued FTSE stock is a no-brainer buy

With an impressive yield and good track record of payments, Mark David Hartley is considering adding this promising FTSE share…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

£9,500 in savings? Here’s how I’d try to turn that into £1,809 a month of passive income

Investing a relatively small amount into high-yielding stocks and reinvesting the dividends paid can generate significant passive income over time.

Read more »

Businesswoman analyses profitability of working company with digital virtual screen
Investing Articles

Dividend star Legal & General’s share price is still marked down, so should I buy more?

Legal & General’s share price looks very undervalued against its peers. But it pays an 8%+ dividend yield, and has…

Read more »

Investing Articles

Dividend shares: 1 FTSE 100 stock to consider buying for chunky shareholder income

This company’s ‘clean’ dividend record looks attractive to me and I’d consider buying some of the shares to hold long…

Read more »

Investing Articles

3 of my top FTSE 250 stocks to consider buying before April

Buying undervalued UK shares can be a great way to generate long-term wealth. Here, Royston Wild reveals a handful on…

Read more »

Ice cube tray filled with ice cubes and three loose ice cubes against dark wood.
Investing Articles

Just released: our 3 top income-focused stocks to buy before April [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Investing Articles

Is this the best chance to buy cheap FTSE 100 shares in a generation?

I want to buy shares when they're cheap, and sell... never, just keep taking the dividends. And the FTSE 100…

Read more »

Man putting his card into an ATM machine while his son sits in a stroller beside him.
Investing Articles

Could NatWest shares be 2024’s number one buy for passive income?

For those of us looking to earn some long-term passive income, how does NatWest's 7% dividend yield sound? It sounds…

Read more »