Forget buy-to-let! I’d buy these UK shares instead

first_img Rupert Hargreaves owns shares in Unilever, British American Tobacco and Standard Life Aberdeen. The Motley Fool UK has recommended GlaxoSmithKline 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. Rupert Hargreaves | Monday, 17th August, 2020 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. Acquiring buy-to-let property has been an excellent way to build wealth over the past few decades. However, current trends suggest that owning UK shares may be a better way to grow a financial nest egg going forward. Indeed, over the past few years, the government has introduced a range of tax and regulatory changes that have made it harder for buy-to-let investors to earn a good profit.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…As well as these changes, rising property prices and stagnating rents have also squeezed investors’ profit margins. The average rental yield of UK property is now just 3.5%. Although some areas do offer a return of 5-7%, on average, many UK shares offer a better return. In addition to their more attractive income credentials, UK shares also offer international diversification. More than two-thirds of the profits from FTSE 100 companies are generated outside the UK. This provides an additional layer of protection for investors, which buy-to-let property doesn’t offer. UK shares vs buy-to-letConsumer goods giant Unilever currently supports a dividend yield of around 3.5%, in line with the average rental yield of UK property.The company also owns a diversified portfolio of billion-dollar consumer brands. It has an enormous presence in emerging markets and offers diversification across its product lines. This diversification has helped the organisation navigate the coronavirus crisis quite successfully compared to other UK shares.Moreover, the company’s current share price of around £46 makes it significantly more accessible than buy-to-let property. The average UK property price is around £232,000. Other UK shares that currently appear to offer a better return than buy-to-let property include tobacco giant British American Tobacco and asset manager Standard Life Aberdeen. Despite the pandemic, both companies are standing by their dividends to investors. The stocks currently support dividend yields of 8.5% and 6.7% respectively. Some of the most defensive UK shares on the market are National Grid and GlaxoSmithKline. Both of these companies generate income from relatively defensive industries such as utilities and pharmaceuticals. The stocks offer dividend yields in the region of 5% and have produced impressive total returns for investors over the past decade through a combination of income and capital growth. It would be virtually impossible for the average investor to replicate for the sort of defensive income streams these companies generate. Even large blue-chip corporations would struggle to replicate the utility infrastructure network National Grid operates. This suggests the firm has the potential to generate attractive profits for shareholders for many decades. The bottom line All of the UK shares profiled above could produce better returns than buy-to-let property in the long run. These companies are sector leaders and are managed by some of the most experienced managers in the business.This means that, unlike buy-to-let property, which investors have to manage themselves or pay a hefty management fee, these stocks can be left alone. Shareholders can sit back and watch the dividends fall into their account. 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 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. Simply click below to discover how you can take advantage of this. Image source: Getty Images. center_img Enter Your Email Address Forget buy-to-let! I’d buy these UK shares instead “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Rupert Hargreaveslast_img

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