2 UK shares to buy in March

At FTSE 100 reached record levels in February. As someone looking to buy UK shares, this presents a challenge.

I think the index contains some great stocks. But even the best company can be a bad investment for someone who overpays for them.

Now, share it on Experience, Halmaand London Stock Exchange Group all trade at a price-to-earnings ratio (P/E) above 30. At that level, I think they look expensive.

Despite this, I think there are still good investment opportunities in UK stocks. Here are two that stand out to me.

Major Health Properties

The first is Major Health Properties (LSE: PHP). It’s a FTSE 250 constituent and on the list of candidates to buy my shares and ISA shares in March.

The company is a Real Estate Investment Trust (REIT). It means making money by renting out properties to tenants and distributing the rental income to shareholders as dividends.

Main Health Properties focuses on GP surgeries and pharmacies. About 90% of the income comes from one source – the UK government.

Usually, that can be risky. The danger of getting most of the rent from one source is that if the tenant leaves, it takes a lot of the company’s income.

In the case of Primary Health Properties, I think this will not be a problem. The government’s commitment to the NHS and primary care solutions seems strong to me.

When I invest in REITs, I expect most of the returns to come from dividends. Currently, the stock has an impressive yield of just over 6%.

The dividend has also grown steadily over the past 26 years. I think the future looks bright for Primary Health Properties, so I’d like to buy today and hold on for a long time.

Howden Joinery Group

If the UK is in recession, Howden Joinery Group (LSE:HWDN) neither knows nor cares.

Kitchen suppliers continue to grow in the UK and in Europe.

The company’s share price is 22% higher than at the start of the year and with a dividend yield below 3%, investors may be missing the boat here. But I think I was wrong.

It is true that buying Howden shares now is more risky than at the New Year stage. But it’s still 11% lower than 12 months ago.

At a P/E ratio of just under 11, the stock trades roughly in line with the FTSE 100 average. And with no debt, the company is in a stronger financial position than most of its peers.

Management also reported strong margins in its last trading report. With this type of business, I see it as a sign that the company can pass on higher inflation costs to its customers.

Less economic conditions could be a challenge for Howden moving forward. But so far this seems to have been a tailwind, with more people choosing to improve rather than move.

Compared to other stocks, I think Howden Joinery Group offers good value. It is on the list of stocks to buy this month.