Looking for dividends and growth? I reckon these are 2 of the best shares to buy now

first_img The high-calibre small-cap stock flying under the City’s radar Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended IMI. 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. With so many bargain UK stocks available after the stock market crash, it isn’t easy to decide which are the best shares to buy now. If you’re stumped, I’d like to give a shout for these two.Three quarters of UK companies cut or suspended their shares in the second quarter of this year, including this pair. However, my stock picks here are the first to restore their dividends AND make up all lost payments in full. That’s impressive, and explains why I think they’re among the best shares to buy now.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…Defence specialist BAE Systems (LSE: BA) crashed by more than a third in March. Unlike many stocks on the FTSE 100, the BAE share price has scarcely recovered since. That seems odd, given that in July, it reinstated the £460m dividend payout it deferred in April. It also declared an interim dividend of 9.4p a share.BAE is one of the best shares to buy nowChief executive Charles Woodburn said demand for BAE’s weaponry remains high, unsurprising given today’s uncertain world. On the other hand, it’s civil aerospace division has been hammered. That isn’t surprising either, given that BAE makes parts for Boeing passenger aircraft.Woodburn said full-year profits will be lower due to the pandemic, but the second half should be better and I think there is an opportunity here. The BAE share price is trading at just 10.5 times earnings, a modest valuation. It now offers a forecast yield of 5.1%, covered 1.7 times by earnings. Analysts expect earnings to drop 7% this year, but jump 15% in 2021.The FTSE 100-listed group has a market-cap of £15.09bn, but relatively low net debt of £2.04bn. Better still, it’s winning new business. In September, it secured an £87m contract with the US Navy, while its Tempest programme should support 20,000 jobs a year for decades. That’s why I reckon BAE Systems looks like one of the best income and growth shares to buy now.I’m also tempted by IMI (LSE: IMI), another top stock to put on your watchlist. The engineering group crashed in March (along with almost everything else) but has made a striking comeback since. The IMI share price is now up 40% in the last six months. Clearly, I’m not the only one who thinks it’s one of the best UK shares to buy now.I’d buy the FTSE 250 dividend heroIt was lifted by a positive set of interims in July, which saw adjusted pre-tax profits rise 5% to £116m, boosted by a temporary surge in demand for ventilator parts due to the coronavirus pandemic. However, total revenues fell 5% to £867m, due to lower volumes across most of its business.IMI gave loyal investors a major boost by reversing its decision to suspend the 2019 final dividend payment. It’s being made in full now, with chief executive Roy Twite saying it’s now affordable due to “robust” first-half profit and cashflow.The FTSE 250-listed company’s current 1.3% yield is forecast to rise to 2.1% next year, generously covered 2.9 times by earnings. My biggest concern is that you’ve missed the best of the post-crash share price recovery. However, the IMI share price isn’t too expensive at 15.9 times earnings. It’s another top dividend growth share that you might consider buying today. 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. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Image source: Getty Images 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. Harvey Jones | Wednesday, 21st October, 2020 | More on: BA IMI See all posts by Harvey Jones Or you might like this. Looking for dividends and growth? I reckon these are 2 of the best shares to buy nowlast_img read more

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