Time for some last-minute ISA bargains in the stock market?

Today is the last day for investors to use their ISA contribution limits for the tax year just ended. Tomorrow, the new financial year brings a new £20,000 limit.

I have used my full allowance for this year. But if I don’t, here I am looking for the last few stocks to buy.

Real Estate

Rising interest rates in the UK and US have depressed property prices. More expensive debt means financing to buy a building is harder to come by.

As a result, demand in the property sector has decreased, causing prices to fall. And some tax-efficient Real Estate Investment Trusts (REITs) have seen their stock prices drop.

Two in particular stood out to me as stocks to buy in the last days before the new ISA allowance. In England, Warehouse REIT looks attractive to me and Realty Income in the US is on my radar.

As the name suggests, Warehouse REIT focuses on industrial distribution centers. The risk here is that the vacancy rate rises as companies that started renting space during the pandemic start to struggle.

I expect this stock to be good, though. There are some natural advantages for warehouse owners because the buildings are expensive, location issues, and space in prime locations is limited.

Realty Income is a retail-focused REIT. It actually has the opposite characteristics of a Warehouse REIT – it has strong tenants that cannot be run, but the building is largely a commodity.

That means that risk and reward are exactly the opposite of what it is for a Warehouse REIT. The business does not have pricing power, but it is unlikely that it will have to deal with unpaid rent.

Both stocks have a dividend yield of over 5% and I’d be happy to buy them at current prices. Warehouse REIT probably offers better growth, but Realty Income is more stable.

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided for informational purposes only. It is not intended to be, nor does it become, any form of tax advice.

banks

Another sector to watch today is financials. There is a lot of pessimism in the banking sector today and that makes stocks in banks attractive to me.

NatWest Group it is a stock that stands out for me in the UK. It has one of the highest retail deposits, as well as an important base among younger savers with a wide range of products and offers.

The risk with these companies is that they are still largely owned by the UK government. That has the potential to limit its ability to operate independently as a profit-making entity if necessary.

However, if I were looking for a stock to buy, I would consider NatWest. The company does more in the way of share buybacks than other UK banks, giving it a clear advantage, in my eyes.

I think there are some interesting US banks. But one that has increasingly appeared on my radar US Bancorp.

The company is quite large among the regional banks. There is certainly more risk of tighter regulation cutting profits than there is JP Morganbut the stock is cheaper.

I will see it as a worthy stock to buy when the financial year is over. NatWest looks like a more stable offering, US Bancorp with greater reward potential.