5 Cheap UK Shares To Buy Right Now

Last Updated September 9th 2021
7 Min Read

Having a passive income is a good way of attaining financial freedom. A passive income means a source where you do not have to be there or have any input for you to get some returns. Buy cheap UK stocks or shares right now and make some passive income. 

With a good amount of stocks in well-performing companies, you can earn handsome dividends that you can live off without ever having to work. 

There are so many companies from which you can buy cheap shares in the United Kingdom. You can buy either buy dividend or growth stocks.

Dividend stocks are from companies that pay regular dividends to their shareholders. Most companies pay these dividends at the end of a financial year. As a shareholder, you can choose to get your payments in cash or have additional stocks in your portfolio. 

Growth stocks on the other hand are shares in companies that show the potential of growing faster than the overall economy. These stocks react faster to market swings. You can earn a lot of money with such shares and can lose an equally high amount of money if market swings go against your predictions. 

In this type of share, the companies do not pay dividends. They reinvest earnings back into the business to generate more revenue and interest.

The Corona Virus pandemic has significantly shifted the markets to the negative side. A lot of companies have been forced to lower down their stock prices to attract more investors. They need this money to revamp their businesses. As an investor, you can take this opportunity to try and get some more shares to your portfolio at attractive bargains. 

Whether you are a seasoned or a start-up investor, it can be challenging to identify stocks with potential growth potential, especially in such unprecedented conditions. You should not be worried though. If you want financial freedom, then here are 5 cheap UK shares to buy right now. 

  • Persimmon
  • British Petroleum
  • Parsley Box Group
  • Tesco
  • Amryt Pharma

 

1. Persimmon

An attractive Real-estate Industry 

Persimmon is a British housebuilder company whose headquarters are in York, England. The company was founded in 1972 by Duncan Davidson and named after a horse that won the 1896 Derby for the Prince of Wales who was later to become Edward VII. The company is listed on the London Stock Exchange.

Despite the prevailing Covid pandemic, this company has initiated a range of projects that have seen its sale of homes rise by 23% as compared to the same period in 2020. The UK has had a chronic undersupply of homes that have spiked up demand for the second-biggest housebuilder in the country. According to the company’s reports, it has already sold homes worth £3 billion. This sale is a quarter ahead of 2020 sales and about 11% more than in 2019.

The selling prices of private owner-occupiers have also gone high by almost £10,000 boosting the company’s revenues. According to UK analysts, it is the low supply of homes coupled with demand and taxpayer-funded government support that is pushing a lot of new buyers into the market and consequently pushing the prices high. 

As an investor, you can consider having this share as part of your portfolio. It is a cheap UK share trading at just 2,747p. With the potential this industry is showing, you are set to earn some attractive profits with this stock. The current dividend yield for this stock is at about 8.13%. You can take advantage and include some cheap shares to enjoy this high return.

2. British Petroleum

Investing in petroleum products and especially oil has traditionally been profitable. The demand for gas is continually rising due to the rise in vehicle and machine manufacturing.

Even with alternative energy sources, the demand for oil remains relatively high. Investing in cheap shares of oil companies seems like a good idea. 

British Petroleum (BP) is a British oil and gas multinational company that has its headquarters in London, the capital city of England. 

With over 70,000 employees, BP is among the seventh largest and oldest oil and gas companies in the world and deals with all major aspects of oil and gas. It was established around 1908 as a subsidiary of Burmah Oil Company. Currently, it has subsidiaries in more than 80 countries around the world. 

The current share price for BP is 302p, which makes it a cheap UK share to buy right now. Their stock price has dipped recently following a global slump in demand for oil as a result of the Covid-19 pandemic, but it is going to recover since the world’s economy uses crude oil more than any other energy source. 

The company is also paying its dividends, so there is no cause of concern on this aspect. 

The P/E ratio for this stock is 9.64 and has a year return of 23.99%. Dividend returns stand at 5.27%, which is fairly good and had a trading volume of more than 16.2 million shares in the last 24 hours. 

3. Parsley Box Group

Here is another UK penny stock company whose shares you should consider buying. This company specializes in delivering ready-made meals to individuals 60 years and above. 

The demand for its meals has been going up of late pushing their revenues up by 26% in the first half of 2021, as compared to the same period in 2020. 

The company whose headquarters is in Edinburgh, UK, has recently raised about £3 million to meet its increasing demand. The average age of the population in the UK is going up thus increasing this company’s market segment. This increase presents a good opportunity for the company as well as its investors in terms of increased business and profitability. 

The share price for this company is currently retailing at 103.5p, placing this stock among the cheap UK shares to buy now. Its trading volume in the last 24 hours was 59,936 shares. 

This company does not pay dividends at the moment but remains one of the cheapest UK shares to add to your portfolio with great potential. 

Keep in mind that despite its potential and growth in its market segment, the company faces stiff competition from other companies like Tesco, Aldi, and Lidl offering similar products and services. You can have a few of this company’s shares and grow with it.

4. Tesco

A Hypermarket Industry 

Of all the businesses that have benefited from the Covid-19 pandemic, Tesco supermarkets have had a big growth. They have had two great years recording very high sales. Supermarkets are making tremendous sales as people order stuff while contained at home due to Covid-19 measures. Big supermarkets have not been left behind in taking a piece of this pie. 

Tesco was established back in 1919 by Jack Cohen as a group of stalls in Hackney, London. 

It then grew into a multinational company it is now dealing mainly with groceries and general merchandise. It has its headquarters in Welwyn Garden City in England. 

Currently, it is the third-largest retailer in the world based on gross revenues, and the 9th in the world based on revenues. It operates across five countries in Europe and commands a large 28.4% groceries market in the UK. 

Tesco is listed on the London Stock Exchange. It has a market capitalization of £19 billion placing it among the top 30 companies listed on LSE. The company had a 24-hour trading volume of over 10.1 million shares. 

These figures show you the potential this establishment has to make some good profits in the long run. Its share price is currently retailing at 257p placing it among cheap UK shares to buy now. The company has a dividend yield of 4.64% and has the potential to grow with the brand announcing that it will focus on its core markets. 

5. Amryt Pharma

Last but certainly not least among cheap UK shares is Amryt Pharma founded in 2004. It has its headquarters in London, UK, and subsidiaries in four other countries including the United States of America (USA). 

This company manufactures medicines for people with rare and debilitating conditions. The global biopharmaceutical company has had a good run in the first half of this year 2021. 

Amryt Pharma recorded an operating profit of £2,976,702.50 before finance in the first quarter ending June 30. The company’s revenues increased to $62.8 million representing a 35.9% rise from the same period a year ago. 

The company has also completed important business deals like acquiring the US group Chiasma solidifying the company’s position as a world leader in the manufacturing and treating of rare and orphan conditions. 

They have also acquired a license from the US Food and Drug Administration for their new drug Oleogel S10, another important milestone. 

With all these developments, is this stock still a cheap UK share? At the moment, the stock for this company is trading at 160p and has a market capitalization of about £507.7 million. At 160p, this stock falls among the cheap shares in the UK. With the company’s growth potential, it will be a wise idea to have a few of these stocks in your portfolio. 

eToro - Buy Top UK Shares with 0% Commission

etoro broker

eToro have proven themselves trustworthy within the stock market over many years – we recommend you try them out.

Your capital is at risk. Other fees may apply

Read More:

7 Best Cheap Stocks to Buy Now Under $5

15 UK Shares To Invest In That Are Both Cheap and Profitable

3 Beaten-Down Growth Stocks To Buy Now

Why To Buy These 2 UK Shares Today For Long-Term Growth

5 Penny Stocks To Buy Right Now

Best UK Dividend Stocks: 4 FTSE 100 Shares To Buy Today

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.