Do you use a Stocks and Shares ISA to buy UK shares? If the answer is yes, and you want to make full use of your allowance before the end of the tax year, you’d better be quick. There’s just under a month left before you can max out your current £20,000 quota. And there’s a wide array of great shares to buy right now, in my opinion.
Of course one doesn’t need to buy UK shares immediately. Just stashing money inside your tax-efficient ISA wrapper is enough to take advantage of this year’s allowance. But I for one won’t be delaying any decisions to add British stocks to my own portfolio.
Here are two from the FTSE 100 I’d happily add to my own ISA today. I think they are great shares to buy for a long-term investor like me.
Should you invest £1,000 in Admiral right now?
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#1: Car insurance colossus
The uncertain economic outlook isn’t stopping me from continuing to buy UK shares. There are many great non-cyclical stocks to choose from today. And one of them on my list today is Admiral Group (LSE: ADM). This is because its 6.2% dividend yield for 2021 is one of the biggest on the FTSE 100.
Having motor insurance is a legal requirement, and this means that profits at Admiral remain stable even during economic downturns. The company also has several mighty insurance brands like Elephant, Diamond, and Admiral itself which allow it to keep growing revenues. These brands seem to be rising in popularity and helped the broader group build its market share of new customers last year. As a consequence the insurer added 650,000 new customers to its books in 2020.
Be warned, though, that a recent Financial Conduct Authority study threatens to take a big swipe out of Admiral’s profits. It recommends that UK insurance shares like this be stopped from charging existing customers more than new clients on their premiums, putting the practice of “price walking” to an end.
#2: Another FTSE 100 share to buy
I believe B&M European Value Retail (LSE: BME) is another one of the best shares to buy on the FTSE 100 today. The low-cost retailer’s fallen 10% from February’s record peaks, and I think this represents a prime dip-buying opportunity.
Sales at this UK share are going from strength to strength as tough economic conditions put massive strain on shopping budgets. Indeed, B&M has in recent days significantly upgraded its full-year profits forecasts on the back of “strong revenue growth” in the final three months of 2020.
That share price fall I mentioned at the top leaves B&M trading on a sub-1 forward price-to-earnings growth (PEG) reading of 0.2. This suggests that the market is currently undervaluing this UK share. It’s true that the company’s lack of an online presence could see it lose custom as broader e-commerce activity picks up. Still, I think this is still one of the best value shares I could buy right now.
