2 of the best UK shares I’d buy now to make a million

If you invest in good-quality shares like these and hold them for the long haul, I reckon they can help you compound your way to a million.

| More on:

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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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.

If you invest in good-quality shares and hold them for the long haul, I reckon they can help you compound your way to a million. As part of a diversified portfolio, the following are two of the best UK shares I’d buy now.

Food products

With Cranswick (LSE: CWK), both operations and the share price have held up quite well through the coronavirus crisis. The FTSE 250 meat-focused food products supplier has proved the resilience of its business recently. Indeed, the company has defensive qualities that show up in the long record of gradually rising revenue, earnings, cash flow, and shareholder dividends.

The enterprise has so far been a growth success. And that reflects in the almost 350% rise in the share price over the past 10 years. But I wouldn’t allow past achievements to put me off owning the stock. I reckon the future looks bright for Cranswick. And shareholders taking the plunge and buying a few shares today may be glad they did a decade from now.

In June, chief executive Adam Couch said there is a “solid platform from which to continue Cranswick’s successful long-term development”. And the firm has been ploughing money into its operations as well as acquiring new businesses to keep the growth flowing.

Meanwhile, with the share price near 3,734p, the forward-looking earnings multiple is just above 21 for the trading year to March 2022. And the anticipated dividend yield is a little under 1.8%. This isn’t a bargain-basement valuation, but the business is a premium enterprise and may be worth paying for.

Fast-moving consumer goods

The fast-moving consumer goods sector has long been cherished by investors as a well-stocked hunting ground for cash-generating, defensive businesses. And perhaps the king of the bunch in the FTSE 100 is Unilever (LSE: ULVR), which has a market capitalisation around £119bn. Indeed, it’s a huge business.

You’ll probably know many of the company’s resilient and much-loved brands, such as Hellman’s, Domestos, Vaseline, and many others. Consumers tend to stick to the brands they know, and they keep using up the product and coming back for more. That’s why company cash flow can be so reliable and backs steady shareholder dividends.

But Unilever has delivered growth as well. And that shows up in the share price. The stock is around 130% higher than it was 10 years ago. But on top of all that capital appreciation, shareholders have collected a rising stream of dividend income. For a sleep-well-at-night investment, that’s a decent return.

And the next decade could work out well for shareholders as well. In July, chief executive Alan Jope said, Our focus for the rest of 2020 will continue to be volume led competitive growth.” Meanwhile, with the share price close to 4,549p, the forward-looking earnings multiple for 2021 is just below 20. And the anticipated dividend yield is around 3.4%. Unilever has carried a full-looking price tag for as long as I can remember. But I reckon the company remains one of the best UK shares to buy now.

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.

Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Unilever. 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

British Pennies on a Pound Note
Investing Articles

After a 540% rise, could this penny share keep going?

This penny share has seen mixed fortunes in recent years. Our writer looks ahead to some potentially exciting developments in…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing Articles

Is the S&P 500 going to 10,000 by 2030? This expert thinks so

One stock market strategist sees animal spirits taking hold and driving the S&P 500 index even higher by the end…

Read more »

Investing Articles

I’m expecting my Phoenix Group shares to give me a total return of 25% in 2025!

Phoenix Group shares have had a difficult few months but that doesn't worry Harvey Jones. He loves their 10%+ yield…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

14.5bn reasons why I think the Legal & General share price is at least 11% undervalued

According to our writer, the Legal & General share price doesn’t appear to reflect the underlying profitability of the business. 

Read more »

Young black man looking at phone while on the London Overground
Value Shares

After a 16% drop, FTSE 100 stock JD Sports Fashion looks like a steal to me

This FTSE 100 stock has tanked since mid-September. Edward Sheldon believes that there's value on offer after the share price…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Is now the time to buy BP shares? Here’s what the charts say

The best time to buy shares in a company is when they’re trading at a discount. But the future is…

Read more »

Investing Articles

Here’s how I’d use £50K to aim for a million when the stock market crashes

Seeing a stock market crash as a buying opportunity could prove lucrative for a well-prepared, long-term investor. Christopher Ruane explains…

Read more »

Stack of one pound coins falling over
Investing Articles

It’s up 27% with a P/E of 9! I’m considering the potential of this blossoming penny stock

Despite several years of losses, this UK penny stock has an impressive valuation. I’m looking to see if it could…

Read more »