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£2k to invest? Here are two cheap UK shares I’d buy right now

first_img Rupert Hargreaves | Monday, 24th August, 2020 | More on: BATS RIO Our 6 ‘Best Buys Now’ Shares 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. There’s no shortage of cheap UK shares after this year’s stock market crash. So today, I’m looking at two strong FTSE 100 businesses currently trading at knockdown prices.If you’re buying with a long-term horizon of 10 years or more, I reckon these stocks could help you build a large financial nest egg. 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 UK shares to buy Shares in blue-chip dividend champion British American Tobacco (LSE: BATS) have slumped in recent months. Concern about the company’s long-term outlook, as well as a declining number of smokers around the world, has hurt investor sentiment towards the business. However, the group’s underlying fundamental performance remains strong. This is why the company is on my radar as one of the best cheap UK shares to buy right now. The company’s latest trading update showed a 3.5% increase in adjusted profit before tax to £4.9bn. This was above analyst expectations. Overall revenues in the first half of the year increased by nearly 1%. The firm’s strong H1 performance puts it well on the way to meeting full-year growth expectations. As such, I reckon now could be an excellent time to buy the stock as part of a diversified portfolio of cheap UK shares.Right now, shares in the company are dealing at a forward price-to-earnings (P/E) multiple of just 7.7. That’s below the long-term average of around 16. In addition, shares in British American Tobacco offer a dividend yield of 8.5%. I think these numbers show the stock provides a wide margin of safety at current levels. Mining giant Mining giant Rio Tinto (LSE: RIO) is also on my radar. There are several reasons why I think this company could be a great addition to a basket of cheap UK shares.For a start, the company is the largest producer of iron ore in the world. This gives it a definite competitive advantage and the most substantial profit margins in the mining sector. The company also has a strong balance sheet. Rio’s healthy cash generation has helped it reduce debt and invest in the business at the same time. It’s also returned a lot of cash to investors over the past few years. However, despite its performance since 2015, investor sentiment has turned against the business recently. Like many cheap UK shares, investors are worried about the impact the coronavirus crisis might have on the company’s bottom line.So far, the effect has been minimal. Therefore, I think now could be an excellent time to take advantage of depressed investor sentiment and buy the stock as part of a diversified portfolio. It’s projected to pay investors a market-beating dividend yield of 6%. On top of this, the stock appears to offer a margin of safety as it’s trading 30% below its long-term average P/E multiple of around 15.  See all posts by Rupert Hargreaves I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images center_img “This Stock Could Be Like Buying Amazon in 1997” Rupert Hargreaves owns shares in British American Tobacco. The Motley Fool UK has no position in any of the shares mentioned. 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. 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. Simply click below to discover how you can take advantage of this. £2k to invest? Here are two cheap UK shares I’d buy right now Enter Your Email Addresslast_img read more