5 expert suggestions for stocks and shares to hold in your ISA!

There’s not long left now before the end of the tax year, which means time is running out to use your remaining ISA allowance to invest in stocks and shares.

Here at The Motley Fool, we’re big advocates of a long-term ‘buy and hold’ strategy. And there’s no better place than an ISA to put that into practice. So, to give you some investing inspiration, let’s take a look at some expert stock picks.

5 top stocks and shares to consider for your ISA

The professionals over at Hargreaves Lansdown have put on their thinking caps and come up with five investments that they believe would be a great fit for investors looking to make the most of their stocks and shares ISA allowance.

Here’s what their analysts came up with and an explanation why they’re solid picks.

1.Lloyds Banking Group (LLOY)

These shares are making something of a resurgence, becoming a popular choice among investors in recent times.

Lloyds have battled and prospered throughout plenty of changing market conditions over the years, finding ways to adapt and overcome whatever the UK and global economy throws at them.

Being the UK’s largest mortgage lender, the bank’s adaptability and resilience are bolstered by the fact that rising interest rates will play into the hands of the firm.

So, what does this all mean for the share price? The analysts at Hargreaves Lansdown think these are great shares to own because they have an impressively low cost to income ratio, which means they can ride out tough times. The shares also come with a tasty dividend payment, although this is not guaranteed.

2. Microsoft (MSFT)

As a trailblazing tech stock that laid much of the groundwork for the computing and software industry, Microsoft remains a relevant and profitable business.

The company is beginning to move its focus towards cloud computing, leaving plenty of room for potential growth. A recent acquisition of major games company Activision also shows how ambitious Microsoft’s plans are.

Analysts believe this is a great choice for your stock and shares ISA because Microsoft offers:

• At 1% dividend payment
• A profitable business model with a manageable price to earnings (P/E) ratio of 28.7
• Lots of room for future growth with expansion into new areas

3. Royal Mail (RMG)

You’re probably well aware of this business. Even though writing and sending letters is going swiftly out of fashion, delivering packages is a booming business.

Royal Mail has continued to work on cutting costs to make the company more efficient. Smart corporate moves and a healthy level of custom in the UK and abroad have got plenty of stocks and shares ISA investors excited about the future.

4.Smith & Nephew

The medical device maker is looking to rebound in a big way now that the coronavirus pandemic is well and truly in our rearview mirrors.

The firm adjusted to the impact of the pandemic and became a leaner company. These shrewd moves reduced costs without hindering the operational capacity.

Supply chain issues could still hamstring the company’s goals. However, a prospective 2.3% dividend payment, a healthy P/E ratio and a lower cost base make these shares an interesting option for ISA investors.

5. United Utilities Group (UU)

Although water may not sound too exciting, this investment has plenty of investors enthusiastic about future growth. This isn’t a jet-fueled superstar growth stock, but these shares have been progressing comfortably over the last few years.

A comfortable P/E ratio and a future dividend yield of around 4.5% definitely makes this firm a strong contender to consider including in your stocks and shares ISA account.

How to invest using a stocks and shares ISA

If you’ve not already got an ISA account set up, you should consider a platform such as the Hargreaves Lansdown Stocks and Shares ISA. It’s great for beginners, provides good value for long-term investors and has plenty of investments to choose from.

For those of you already using an ISA, try and make the most of this year’s allowance to benefit from the tax advantages. It’s also worth doing a quick check using our broker cost calculator to see if you could save money by switching to a platform that’s better suited to your investing style.

Just remember that when it comes to investing, your capital is at risk and you may get out less than you put in. So, consider any moves carefully and don’t overstretch your finances.

Please note that tax treatment depends on the individual circumstances of each individual and may be subject to future change. The content of this article is provided for information purposes only. It is not intended to be, nor does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Don’t leave it until the last minute: get your ISA sorted now!

If you’re looking to invest in shares, ETFs or funds, then opening a Stocks and Shares ISA could be a great choice. Shelter up to £20,000 this tax year from the Taxman, there’s no UK income tax or capital gains to pay any potential profits.

Our Motley Fool experts have reviewed and ranked some of the top Stocks and Shares ISAs available, to help you pick.

Investments involve various risks, and you may get back less than you put in. Tax benefits depend on individual circumstances and tax rules, which could change.

About the author

Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.