Is this one of the best UK shares to buy now? I think it might be and here’s why

first_imgSimply click below to discover how you can take advantage of this. Kevin Godbold | Wednesday, 2nd December, 2020 | More on: STCK 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. 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. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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 Kevin Godboldcenter_img Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” Over the past five years, FTSE Small Cap company Stock Spirits (LSE: STCK) has paid a generally rising shareholder dividend. And I think the firm’s position in the defensive alcoholic drinks sector helped it achieve that record. Stock Spirits produces branded spirits and liqueurs that are mainly sold in Central and Eastern Europe and Italy.Why I see this as one of the best UK shares to buy nowThe business model always makes me think of the giant branded alcoholic drinks supplier in the FTSE 100, Diageo. And today’s full-year results report demonstrates the resilience of the Stock Spirits business in the face of Covid-19. Just like Diageo, the enterprise appears to enjoy defensive qualities. And I think that’s encouraging because with its market capitalisation at just £486m compared to Diageo’s at just over £68bn, the company has plenty of room to grow.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…Stock Spirits headlined its report today with the statement: “A resilient performance in uncertain times with results ahead of expectations.” And when directors of any company declare that results beat their expectations, I think it’s time to take notice. Indeed, the share price is perky this morning. And ‘ahead of expectations’ announcements can sometimes lead to a period of outperformance from a share as it factors in improving trading in the underlying business.The reporting period covers the 12 months to 30 September, which includes the worst economic conditions the pandemic has thrown at us, so far. But Stock Spirits excelled. Sales volumes increased by 1.8% compared to the prior year.  And that drove a 6.9% increase in revenue and an 8.5% jump in adjusted earnings per share. Meanwhile, net debt plunged by just over 59% to around £20m. And overall, the financial performance of the company has been robust.Defensive growth potentialI’ve written about Stock Spirits several times over the past few years, often commenting on the defensive qualities of the business. And I’m pleased with how the enterprise performed in the recent stress test of the coronavirus crisis. Indeed, the stock leapt from its coronavirus lows of the spring. And at today’s 259p, it’s making highs well above its pre-coronavirus level in February near 220p.And I think the strength in the share price underlines another important quality of the business – its growth potential. So, in Stock Spirits, I see an investment opportunity offering me the potential for defensive growth in dividend income and capital via a rising share price.The directors emphasised their confidence in the outlook by increasing the total dividend for the year by 6.8%. They also declared a special dividend worth 11 cents (Stock Spirits reports in euros), which more than doubles the shareholder payment for the year. Meanwhile, based on the ordinary dividend and with the share price at 260p, the forward-looking dividend yield for the current trading year is just below 3.5%. I’d buy some of the shares for the long haul.  Is this one of the best UK shares to buy now? I think it might be and here’s why 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. Our 6 ‘Best Buys Now’ Shareslast_img

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