I don’t plan to stop seeking low-cost UK shares like these, however. There are plenty of rock-solid penny stocks out there to buy if one knows where to look. Here are three I think could deliver excellent returns for me in the near term and beyond.

Steppe Cement

Price: 36.5p per share
Market cap: £83.2m

Urbanisation rates in emerging markets like Kazakhstan are rising strongly. It’s a phenomenon that building materials supplier Steppe Cement is exploiting to full effect. Sales and profits at this penny stock leapt 13% and 53% respectively in US dollar terms last year.

The Kazakh construction sector is strongly growing thanks to financial incentives and favourable policies at government level. The consequent boost to housing and infrastructure building helped domestic cement demand rise almost a quarter (23%) year-on-year in 2021.

I’d buy Steppe Cement shares to capitalise on this theme. That’s even though political unrest in Kazakhstan creates some uncertainty looking ahead.

European Metals Holdings

Price: 42p per share
Market cap: £84.2m

I’ve been searching for top lithium stocks to buy as electric vehicle (EV) sales balloon. The silvery metal is a critical material in batteries that propel low-carbon cars around. And prices of the material are tipped to explode towards the end of the 2020s as supply shortages emerge.

All of this makes European Metals Holdings (LSE: EMH), which owns the huge Cinovec lithium project located in western Czechia, a stock I’m considering buying. This resource contains an estimated 7.39m tonnes of lithium carbonate equivalent and neighbours some of the world’s largest automakers.

I’m aware that problems in developing Cinovec could have an adverse impact on the company’s share price. But all things considered, I think European Metals has masses of investment potential.

Accrol Group

Price: 25p cents per share
Market cap: £79.7m

Trading at toilet tissue and kitchen roll manufacturer Accrol Group (LSE: ACRL) has been heavy-going over the past year. Soaring energy costs, raw material shortages and logistics problems have combined to toxic effect and prompted the release of multiple profit warnings.

Inflationary pressures remain a danger going forwards, of course. But I’m hoping that the penny stock has finally turned a corner. Most recent financials in mid-May showed the successful recovery of all input cost rises in a possible sign of things to come.

I also believe sales could balloon at Accrol as the cost of living crisis worsens. The business specialises in producing cheaper own-brand products, the sort that become more popular when shopping budgets come under pressure.

But Accrol is more than just a decent stock to own for these tough times. Market share growth has returned at the business more recently. And I’m tipping it to continue improving as the value retail boom of the past decade rolls on and savvy shoppers demand more bang for their buck.

The post 3 top penny stocks to buy today! appeared first on The Motley Fool UK.

Good enough to eat

The ready-made food industry was growing rapidly prior to the pandemic, a reflection of the increasingly-busy lifestyles people lead. Now that we are all now getting out and about again in large numbers the sector is tipped for more scintillating growth too. It’s why I’m thinking of buying Bakkavor Group (LSE: BAKK) shares for my portfolio today.

Bakkavor makes freshly-prepared foods like salads, pizzas and desserts which it sells to major supermarkets such as Tesco, Sainsbury’s and fast-growing discounter Lidl. The business sources around 90% of revenues from the UK, though it also has a growing presence in the US and China. This geographical diversification gives it added stability as well as exposure to exciting growth markets.

It’s important to note that Bakkavor counts on a limited number of customers across its markets to drive revenues. The retailers which sell its goods might be major players in the grocery and hospitality industries. However, a loss of one or more of these key contracts could have a catastrophic impact upon profits.

That said, I believe this risk is baked into this ‘nearly’ penny stock’s low valuation. At current prices of 106p per share, the foodie trades on a forward price-to-earnings (P/E) ratio of 9.5 times. This is inside the widely-regarded bargain benchmark of 10 times and below.

I also like Bakkavor because of its market-beating 6.5% dividend yield for 2022. In terms of value, I think this UK share is quite hard to beat.

7%+ dividend yields!

Through its Domty brand, penny stock Arabian Food Industries Company (Domty) (LSE: DOMT) is a big beast in Egypt’s cheese market. Sales here are recovering steadily following the hit caused by Covid-19 (they rose 5% in the nine months to September, latest financials show). And I’m tipping them to grow strongly over the long term as population levels and personal incomes grow in its North African territory.

This view is shared by analysts at Mordor Intelligence. They believe the Egyptian packaged dairy product market will grow at an annualised rate of 4.7% between now and 2026. But Arabian Food Industries Co isn’t just about the manufacture of processed and white cheese. The business also manufactures juices and last year announced plans to begin selling baked goods to Egyptian customers too.

I also like Arabian Food Industries Co because, like Bakkavor, it offers excellent all-round value. Not only does the food producer trade on a rock-bottom forward P/E ratio of 6 times, at current prices of $2.10 per share. This penny stock carries a great 7.1% dividend yield too.

Despite the threat of rising milk prices I think this cheap UK share could help me build a winning portfolio.

The post 6%+ dividend yields! 2 cheap UK shares to buy for a winning portfolio appeared first on The Motley Fool UK.

Here are some top dirt-cheap stocks that are on my radar following recent price weakness.

Say cheese

Strong trading has brought Arabian Food Industries Company Domty (LSE: DOMT) into my crosshairs. This London-quoted share supplies a broad range of cheeses in the Egyptian food market under the Domty brand. And sales here have been going much stronger than anticipated (turnover jumped 32% year-on-year in the third quarter).

I’m confident Domty could experience strong and sustained sales growth too. Certainly as population levels in Egypt rise strongly and personal wealth levels increase. The country’s population grew almost 2% in 2020, for instance, World Bank statistics show. Despite the threat of rising raw material prices, I think the food producer could prove an excellent long-term buy.

A penny stock to ride the EV boom

Getting exposure to the green vehicle revolution is another great idea in my opinion. I’ve sought to do so by buying shares in TI Fluid Systems, a UK share which builds fluid-carrying components for automobiles. And I think investing in penny stock Proton Motor Power Systems (LSE: PPS) could be another good way to play this theme. The hydrogen fuel cells it produces can be used for a variety of purposes, including powering cars.

Tesla’s Model 3 was the best-selling car in Europe in September, a landmark moment in the history of low-carbon vehicles. It’s the first time a battery-powered car has sat at the top of the charts, and illustrates how strongly demand for reduced emissions vehicles is.

Hydrogen-propelled autos are tipped for strong and sustained growth as part of this revolution. Remember though, a failure by lawmakers to build the required refuelling infrastructure could hit uptake hard and, by extension, profits at companies such as Proton Motor Power Systems.

Primed for take-off

Air Partner (LSE: AIR) is a UK share that’s not without its risks either, as the Covid-19 crisis escalates again in many regions. The business supplies a wide range of aviation services, from chartering large aircraft and private jets through to providing consultancy on safety and security. This means the brakes could be slapped on its operations if rising infection rates prompt fresh waves of travel restrictions.

However, I still like the risk-to-reward profile of Air Partner a lot. I’m encouraged by steady growth in the number of high-wealth individuals and what this means for the private jet market.

I also think demand for charter planes could receive a sustained pandemic-related boost as these people cut back on using standard carriers. Finally, I like the penny stock’s ambitious approach to acquisitions to turbocharge earnings growth.

The post £1,000 to invest? 3 penny stocks to buy right now appeared first on The Motley Fool UK.