6%+ dividend yields! 2 cheap UK shares to buy for a winning portfolio

I’m looking for growth, income and value. These are just a couple of cheap UK shares available to buy today that I’m thinking of snapping up.

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Finding cheap UK shares to buy that offer both exceptional growth and income potential isn’t as difficult as you might think. In fact, recent stock market volatility has made it even easier to find top low-cost shares right now. Here are two with huge dividend yields north of 6% I’d buy today.

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.

Should you invest £1,000 in Bakkavor right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bakkavor made the list?

See the 6 stocks

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.

Should you buy Bakkavor shares today?

Before you decide, please take a moment to review this first.

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Of course, the decade ahead looks hazardous. What with inflation recently hitting 40-year highs, a ‘cost of living crisis’ and threat of a new Cold War, knowing where to invest has never been trickier.

And yet, despite the UK stock market recently hitting a new all-time high, Mark and his team think many shares still trade at a substantial discount, offering savvy investors plenty of potential opportunities to strike.

That’s why now could be an ideal time to secure this valuable investment research.

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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 recommended Sainsbury (J) and Tesco. 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.

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