2 UK shares I’d buy for my ISA right now

first_img2 UK shares I’d buy for my ISA right now 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. 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 Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended DS Smith. 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. Image source: Getty Images “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 Kevin Godbold | Wednesday, 3rd March, 2021 | More on: SMDS TATE With economies beginning to emerge from the suppressing effects of the coronavirus pandemic, I think it’s a good time to buy UK shares. And the ISA allowance renews on 6 April. So I’m topping up to make the most of my existing 2020/21 allowance.Structural growth drives this UK shareOne stock I’m keen on is FTSE 100 packaging company DS Smith (LSE: SMDS). The business suffered a dent in profits last year because of the pandemic. However, City analysts expect a bounce-back in earnings in the trading year to April 2022 of around 20%.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…Looking ahead, the outlook is optimistic. DS Smith supplies the fast-moving consumer goods and e-commerce sectors where it is seeing decent long-term growth. In December, the firm said it is “excited” about the structural growth drivers for the corrugated packaging it supplies. And “a number” of trends have been accelerated by the Covid-19 pandemic.The business is expanding abroad and there’s been decent progress in the US. But constant reinvestment in operations has led to a fair pile of debt on the balance sheet. And, of course, DS Smith isn’t the only player in the packaging sector. It’s possible that competition could affect profits in the years ahead.Nevertheless, with the share price near 406p, the forward-looking earnings multiple is just over 14 for the trading year to April 2022. And the anticipated dividend yield is around 3.5%. That valuation looks fair rather than cheap to me. But I’m tempted to embrace the risks and hold the stock as part of a long-term diversified portfolio.A strong niche in a defensive sectorI think DS Smith could sit well alongside a few shares in FTSE 250 company Tate & Lyle (LSE: TATE). The firm provides food and beverage ingredients to industrial markets worldwide. And in February, it posted an 8% increase in overall revenue for the three-month period to 31 December 2020.Despite the pandemic, the company expects the full-year adjusted profit before tax to come in “modestly ahead” of the prior year. The trading year ends on 31 March and the directors predict that adjusted earnings per share will be “well ahead” compared to the year before.I think the expected figures demonstrate the resilience of the business. The food sector has defensive characteristics, and Tate & Lyle occupies a strong niche within it. We can see evidence of the stability of the business in the multi-year record of operating cash flow. And this has led to a dividend rising by modest low-single-digit percentages each year.With the share price near 746p, the forward-looking earnings multiple is a little over 13 for the trading year to March 2022. And the anticipated dividend yield is around 4%. I’m tempted to buy the stock and hold for the dividend. However, the rate of dividend growth has been pedestrian. And earnings have been volatile in the past, despite the steady cash flow.I think the biggest risk with Tate & Lyle is the slow pace of growth. If cash flow and earnings slip, I could see the valuation contract. And I’d then likely lose money from the falling share price even if the firm keeps up the dividend payments. Nevertheless, I see the company as a solid dividend payer and would be glad to have the stock in my ISA now. 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. 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