UK shares to buy now: here’s what I’d do with a £500 investment

first_img Andy Ross | Wednesday, 31st March, 2021 | More on: BBOX LLOY See all posts by Andy Ross Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. ,With the UK stock market still looking cheap versus the US, and with many industries like banking that dominate the FTSE 100 set to recover this year, I’m looking at the UK shares to buy now for my stocks and shares ISA. One of my UK shares to buy nowThe first stock I’d potentially add to my portfolio is Lloyds Banking Group (LSE: LLOY). Its shares seem well poised to benefit from the economy reopening and growing this year, as we bounce back from the pandemic. On top of that, Lloyds’ shares seem to have momentum, as investors increasingly look for value stocks.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The share price is still down on where it was pre-pandemic. I also like that it’s a known banking brand, has got scale in the UK and under the current chief executive has been expanding into higher-margin areas of work, such as wealth management and credit cards.On the other side of the coin, the Lloyds share price is closely tied to perceptions of the UK economy. It’s also not very diversified, unlike Barclays or some European or US banks. By that, I mean it’s a retail bank with no investment banking to diversify earnings. Also, some might be tempted to think the business model faces disruption from fintech. That risk in turn could hold down banking share prices. Lastly, CEO António Horta-Osório is leaving after a decade at the helm, which could be a positive or a negative. It may allow Lloyds to pursue a new strategy. That might deliver more value for shareholders, or it might see someone less capable than Mr Horta-Osório take over. Time will tell. Overall I’m thinking about adding Lloyds shares to my portfolio as the economy recovers from Covid-19. The timing, as we recover from the pandemic, could make it a great share for me to buy now. A share in a more high growth industryThe second UK share I’d consider buying now for my portfolio is Tritax Big Box REIT (LSE: BBOX). The warehousing company provides the warehouses that the big e-commerce companies need as part of their logistics. This means there’s growing demand for warehouses. On top of that, in many markets, including the UK, there is still plenty of room for e-commerce to keep growing.Specifically when it comes to Tritax as a UK share to buy now, what I like is its solid track record, and profitability. For me, that makes the shares worthy of consideration for my portfolio.  I’ll need to be wary, though, of the potential downsides – which include competition, given it’s a growing market. That could lead to pricing pressure.There’s also not a lot of dividend growth and the REIT structure lacks flexibility. What I mean by that is REITs have to pay out 90% of income as a dividend, which I think makes them vulnerable to cuts if markets worsen. That’s the opposite of investment trusts. They can hold significant reserves to pay investors dividends, even if income drops.Overall on the balance of risk versus reward, I’m thinking Tritax Big Box REIT looks like it could add growth and income to my portfolio.When I next have some cash in my portfolio, I’d likely be tempted to buy shares in UK banking giant Lloyds Banking Group or Tritax Big Box REIT. Image source: Getty Images Our 6 ‘Best Buys Now’ Shares Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now!center_img UK shares to buy now: here’s what I’d do with a £500 investment 5 Stocks For Trying To Build Wealth After 50 Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Andy Ross has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, Lloyds Banking Group, and Tritax Big Box REIT. 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. Enter Your Email Addresslast_img read more