5 stocks I’d buy for a brand new 2023 Stocks and Shares ISA

It’s new ISA time again, and the £20,000 limit has just reset. So what should I buy to start a new Stocks and Shares ISA this year?

I want good grades above all. I also want dividends or good growth. Today I selected five that I bought in 2023 ISA if I just started.

I would buy bank shares, of course. For the year, Lloyds Banking Group must be one. But for now, I’m rating it Barclays is the best value. It has a price-to-earnings (P/E) of just five, and a dividend yield of 5%.

I’m the super cheap one. It’s down to the new bank 2023 horror starting in the US. And there are obvious risks, at least in the short term. But it will be on my list.

Stocks are cheap

When I think of a cheap stock, I add it Scottish Mortgage Investment Trust to a new ISA. Most of the high-tech stocks he holds have fallen, and the trust’s share price has also fallen.

Now there is a huge discount of more than 20%. It’s because of the chance of another tech stock falling, and I think that’s a very real risk. But I see a long-term buy here.

For my new ISA, I need to buy a house builder. And I think I’m going to Taylor Wimpey now. The P/E is down at 6.5, with a dividend yield of 8%.

Now the houses are falling apart, and I think the dividend can be cut. But long-term demand should be high, so I’ll buy it. Hmm, maybe add growth to the mix.

The market is shaking

When the stock market shakes, asset managers and others tend to fall. That’s right for M&Gwhich is my fourth choice.

The P/E is not low now, but the forecast shows a drop to around nine with earnings growing in the next few years. Add in the dividend yield of 10%, and that makes the purchase for me. Even with clear stock market risks for the rest of 2023 and possibly into 2024.

I have a lot to do with my next pick, as many UK stocks look cheap to me right now. I want to add a FTSE 250 Save for my ISA, or maybe save a small cap.

Choose safe?

But for the first five in the new ISA, I will stick with what I hope is safe FTSE 100 stock, and I can look at the next year.

So my last choice National Grid. With a P/E of 15, the price is the same, but it is quite good. And a 5% yield is good, if not great. But it has to be one of the most stable UK stocks to earn income.

All these stocks all have their own risks, especially in the short term. But I have a few different options here.

Add that to my aim to continue for at least 10 years, and I say this mixed ISA should keep the risk down quite well.