Are these the best UK shares to buy now?

first_imgAre these the best UK shares to buy now? T Sligo | Tuesday, 21st July, 2020 | More on: DGE ULVR 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. The Covid-19 pandemic has damaged share prices around the world. The FTSE 100 has dropped by 18% year-to-date. The smaller UK index, the FTSE 250, has had a similar trajectory, falling by 21% year-to-date. I believe this has opened up one of the best opportunities to buy UK shares for years.Of course, with falling share prices, it’s often difficult to determine whether something is cheap for a reason. I think it’s best to be cautious. With that in mind, here are two shares I’d buy and hold for the long term.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 best UK share to buy now?I love consumable shares, especially when a business sells low-value items that customers always need. Unilever (LSE: ULVR) is probably the best UK consumable company right now, with brands in its portfolio like Marmite, Ben & Jerry’s, and Lynx. Even in times of economic hardship, I think many of Unilever’s products will make it into customers’ baskets.Unilever’s share price is roughly level year-to-date. This makes its price-to-earnings ratio just 18. I think this could signal that this is one of the best opportunities to buy shares in Unilever at a bargain price.With Unilever’s strong list of products, I expect brand loyalty from its customers. In the future, I think this will enable Unilever to nudge up prices to further improve margins.In turbulent times such as these, I think people will seek out shares in companies like Unilever, due to the dependable revenue and profitability the company normally generates.Diageo For similar reasons to Unilever, I think that Diageo (LSE: DGE) shares are currently among the best in the UK. The company’s share price has fallen by 11% year-to-date. Its price-to-earnings ratio is slightly higher than Unilever’s, at 22. With that in mind, the shares can’t be classed as cheap, but I don’t mind paying a premium for a slice of a quality company.The multinational drinks giant has been hit heavily by the various lockdowns implemented around the world. Unsurprisingly, the closure of bars, restaurants, and hotels has impacted revenues.However, it’s not all bad news for Diageo. We are slowly seeing a return back to normal, with pubs and restaurants reopening. It might take a while for consumer confidence to return. When it does, I imagine they’ll be returning to their favourite drinks and companies like Diageo will benefit.The company has a strong portfolio of beverages, including Guinness, Smirnoff, Johnnie Walker, and Baileys. This should ensure that the company has a drink when palates change.The other thing that makes Diageo one of the best UK shares to buy is its generous dividend yield, which is currently about 2.5%. As my fellow-Fool Edward Sheldon notes, Diageo has notched up its dividend for 21 consecutive years. Edward thinks Diageo is unlikely to slash its dividend any time soon. I’m inclined to agree with him.With pubs, restaurants and bars reopening, I think now is the time to buy Diageo shares and hold for the long term. Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Simply click below to discover how you can take advantage of this. 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. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo and 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. See all posts by T Sligolast_img

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