How I’m playing Brexit to my advantage

UK stocks are cheap but investors are scared of Brexit,. Here’s why you shouldn’t be…

| 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.

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.

Brexit seems to have thrown the entire country into turmoil, with people demanding a plan of action and others just hoping it will go away and normality will be restored. The rest of us (the clever ones) are looking at how we can actually make Brexit a good thing and earn some more money out of it. You know what they say, always look on the bright side!

So, UK stocks and shares are looking cheap at the moment: here’s how Brexit can be our friend and invest in stocks that laugh in the face of adversity.

Unilever

If you are looking to beat those Brexit blues then I believe Unilever (LSE: ULVR), a UK FTSE 100 company, will do the trick. Unilever has an extremely impressive portfolio of food, drink and homecare brands including Dove, PG Tips, and TRESemmé. This stock has a high product demand and range that should laugh at Brexit thanks to their robust standing.

Unilever is currently priced at around 4,325p. Analysts predict that Unilever is due to pay a dividend which equates to 3% the current share price. Yes, it’s not the highest yield in the world but the diverse products, resilience against current economic climate and any downturns makes it my stock of choice with Brexit looming. Unilever is a great UK stock investment opportunity that really is worth looking into.

London Stock Exchange Group

This may seem like a blindingly obvious one but the recent managerial changes and significant stock growth have led me to believe that the London Stock Exchange Group (LSE: LSE) is a worthy 2019 investment, even with Brexit rearing its ugly head.

The very successful Donal Robert from Experian will be the new chairman for the company in May, which should set the stock up for further success thanks to his experience in the field. Furthermore, the stock has grown by over 160% in the last five years with an average annual return of 32.6% growth. With stock prices going down, I think now is the perfect time to invest in a company that is making big positive changes and growing in the face of adversity.

For nervous investors, supermarkets may be your best bet

If you still aren’t convinced, you might wish to invest in supermarkets. These   should always generate steady earnings despite the economic cycle: even if Brexit creates further chaos, we still need to buy our milk, bread and toilet paper, which means these stocks should never let you down!

Brexit-proof your portfolio

With Brexit delayed even further, now really is the time to think about how you can make your stock portfolio Brexit-proof and stronger than ever. This is why I believe the above stocks are worth your investment – they are safe bets and are cheap, so you really can’t go wrong in my opinion.

Now isn’t the time to be making risky investments, so make sure that you are buying UK stocks that won’t disappoint further down the line!

The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended Experian. 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

Aerial shot showing an aircraft shadow flying over an idyllic beach
Investing Articles

A £6,000 stake in IAG shares a week ago has now fallen all the way to…

The mass cancellation of flights has not been great for IAG shares. Our Foolish author takes a look at how…

Read more »

Young Black woman using a debit card at an ATM to withdraw money
Investing Articles

Meet the FTSE 100’s newest bank stock

This FTSE 250 stock has skyrocketed nearly 900% over the past 60 months, earning it a place in the prestigious…

Read more »

Investing Articles

See what £10,000 invested in Shell shares 1 month ago is worth now

Harvey Jones looks at how Shell shares have fared over the past month and more importantly, what the long-term outlook…

Read more »

Finger clicking a button marked 'Buy' on a keyboard
Growth Shares

At its lowest level since July, here’s why I think the IAG share price is dead cheap

Jon Smith explains why the IAG share price has fallen over the past week but talks through the reasons why…

Read more »

Picture of an easyJet plane taking off.
Investing Articles

Will the easyJet share price rise 43% or 97% by this time next year?

City analysts believe easyJet's share price might almost double over the next year. Royston Wild considers the outlook for the…

Read more »

Female student sitting at the steps and using laptop
Investing Articles

More great news for Rolls-Royce shares!

Rolls-Royce shares got a boost this week after some intriguing developments in the process of creating Europe's new fighter aircraft.

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Persimmon’s share price surges 7% on double boost! Can it keep rising?

Persimmon's share price is surging, up 11% at one point earlier on Tuesday. Could this be the start of a…

Read more »

This way, That way, The other way - pointing in different directions
Investing Articles

What on earth’s happening to the Greggs share price?

Harvey Jones says Greggs’ share price has shown surprising resilience in the recent stock market turmoil, but the FTSE 250…

Read more »