2 cheap UK shares (including an 8.7% dividend yield) to buy! | #cybersecurity | #cyberattack | #education | #technology | #infosec

The growing threat of cyberattacks provides opportunity for IT services and software firms like cheap UK share NCC Group (LSE: NCC) to make big profits.

According to PwC, a whopping 64% of UK businesses have experienced fraud, corruption, or economic crime during the past two years. This figure is beaten only by South Africa and is far above the 46% global average. And, once again, cybercrime was the most frequent type of fraud reported.

The rate of cyber attacks has declined from the elevated levels seen during Covid-19 lockdowns. However, it seems the problem will rise over the long term as normal life becomes increasingly digitalised and attacks from individuals and groups of hackers (including from state-sponsored operators) increases.

Risky business?

So I think NCC Group could be a great stock for me to buy for the next 10 years. This stock provides software escrow services which allow firms to continue doing business interrupted even if cyber attacks happen.

It’s important to note that companies like NCC are popular targets for cyber criminals. And this creates big risks for investors. A successful attack might significantly disrupt the stock’s operations. It could also do immense reputational damage that might affect future orders.

That said, I still believe the possible rewards of owning NCC shares more than outweigh this danger. Annual earnings here have grown by double-digit percentages recently and City analysts expect this trend to continue. For the financial years to March 2023 and 2024 earnings per share are tipped to rise 20% and 10% respectively.

These projections also mean that NCC offers excellent value (at least in my opinion) at recent prices. At 219p, this cheap UK share trades on a forward price-to-earnings growth (PEG) ratio of just 0.9. Any reading below 1 suggests a UK share is undervalued.

A cheap UK housebuilding share

As a lover of great bargains I’m considering buying Vistry Group (LSE: VTY) alongside NCC Group today. Rising interest rates pose a danger to housebuilders like this one as homebuyer affordability comes under pressure. But it’s my opinion that this threat is baked into Vistry’s ultra-low valuation.

At 900p per share, this cheap UK share trades on a forward PEG ratio of 0.6. This is created by City predictions that annual earnings will rise 12% in 2022.

The continued resilience of the housing sector is encouraging me to load up on Vistry shares today. According to Rightmove, average asking prices in the UK just saw their largest May increase since 2014.

8.7% yields!

What really grabs my attention with Vistry is the stock’s enormous dividend yields. For 2022 and 2023, these sit at 8.1% and 8.7% respectively at current share prices.

I believe that home prices will continue rising too, given the scale of Britain’s chronic homes shortage. It’s why I already own housebuilding shares and I’m tempted to add Vistry to my portfolio too. This particular builder’s average weekly private sales rate was up 15% between 1 January and 18 May.

I’d buy the stock to hold for the rest of the decade.

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