Got £750 to invest? Here are my 2 best cheap shares to buy now!

first_imgGot £750 to invest? Here are my 2 best cheap shares to buy now! Image source: Getty Images. FREE REPORT: Why this £5 stock could be set to surge Enter Your Email Address 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 have an odd personality quirk: I prefer not to buy and own things. For instance, I don’t own a house (but my wife does). Also, I’ve never owned a car (but I’ve driven company cars). Most of my treasured possessions are ancient. For example, I keep patching up my 25-year-old walking boots to keep them going. Thus, when I receive any sudden windfalls, I rarely have any immediate use for them. Generally, I give any spare money to my wife to spend or save, or I invest into cheap shares for a passive income.I’ll invest £750 into cheap sharesLast weekend, I had a modest windfall when I won $1,000 (over £720) in an online poker game. I decided to round this to £750 to buy cheap shares. As a veteran value investor, I scanned the FTSE 100 index over the past year, looking for laggards. Here are two stocks I like today.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…Cheap shares #1: GlaxoSmithKlineI’ve owned a stake in pharma giant GlaxoSmithKline (LSE: GSK) for almost three decades. As my largest personal shareholding, GSK has been a big disappointment of late. Over the past 12 months, GSK has been among the Footsie’s worst performers. In fact, it’s ranked #96 out of 101 FTSE 100 shares since 19 March 2020 (just before the market bottomed on 23 March). GSK is down almost a tenth (9.7%) over 12 months, versus a 30.2% gain for the index. Nevertheless, as a buyer of cheap shares, I welcome the chance to invest after price falls.At last year’s peak, the GSK share price hit a high of 1,857p on 24 January 2020. On Friday, shares changed hands for 1,299p. That’s a collapse of three-tenths (30%) in 14 months. I know there are worries about GSK’s forthcoming separation into two separate listed companies. And GSK boss Dame Emma Walmsley has hinted that the group will cut its long-established cash dividend of 80p a share.Even so, I think anxiety about GSK’s future might be overdone. Right now, GSK stock trades on a price-to-earnings ratio of 11.4 and an earnings yield of 8.8%. The dividend yield of 6.2% a year is almost double that of the FTSE 100. With GSK looking undervalued on these fundamentals, I’ll keep buying these cheap shares for a juicy passive income.A great business at a 20% discountFor the record, 92 of the 101 shares currently in the FTSE 100 index have gained since 19 March 2020. Still, it genuinely surprises me that Unilever (LSE: ULVR) stock is among the stragglers. Shares in the Anglo-Dutch Goliath are down 2.4% over 12 months. At its peak in 2020, the Unilever share price was riding high at 4,944p on 14 October. Today, the shares trade at 3,974p — down 970p in five months. That’s a slide of almost a fifth (19.6%), which indicates to me that Unilever stock may have been dumped in the ‘cheap shares’ bargain bin.Globally, 2.5bn people use Unilever products each day. And because Unilever is a powerhouse in FMCG (fast-moving consumer goods), its stock generally commands a premium rating. But, like Warren Buffett, I don’t mind paying a fair price to buy into a great business. On Friday, ULVR stock traded on a price-to-earnings ratio of 22 and an earnings yield of 4.5%. The current dividend yield of 3.7% is ahead of the wider FTSE 100. Hence, as a value investor, I’d be happy to buy these discounted shares today! Our 6 ‘Best Buys Now’ Shares Cliffdarcy owns shares of GlaxoSmithKline. 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.center_img Get the full details on this £5 stock now – while your report is free. Simply click below to discover how you can take advantage of this. 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. Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Cliff D’Arcy | Monday, 22nd March, 2021 | More on: GSK ULVR See all posts by Cliff D’Arcylast_img read more