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20 June 2021
15:00 hour

Best shares to buy now: my top 3 FTSE 250 stocks

The Motley Fool UK

16/05/2021 - 12:08

These FTSE 250 stocks include a high-tech engineer and a specialist bank. Roland Head reckons they're among the best shares to buy today. The post Best shares to buy now: my top 3 FTSE 250 stocks appeared first on The Motley Fool UK.


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  7. 2 ways I’m planning to invest in FTSE 100 stocks to get a six-figure portfolio (09/06/2021 - The Motley Fool UK)
    When looking to invest for the future, I want to aim to generate a large enough portfolio to make a difference as I get older. To this end, I want my portfolio to be in the six-figure range. For me, this will be enough to help me enjoy my retirement. However, a portfolio of FTSE 100 stocks worth that much won’t just fall into my lap. I’ll need to invest well over time in order to get to that end goal. Targeting higher growth One way I can look to reach my goal is to target high-growth FTSE 100 stocks. These types of companies usually have high earnings per share and reinvest profits back into the business to fuel future growth. This future growth, coupled with a positive outlook overall, often sees the share price rally as investors look at the potential value further down the line. As the outlook for high-growth FTSE 100 stocks can change quickly, volatility is usually quite high. However, given that I’m trying to get to a six-figure portfolio, I have time on my side. In this way, over several years, the growth rate by investing in these types of stocks should exceed more mature companies. A regular investment on a monthly basis in growth stocks could allow me to reach my goal quicker than other methods. I do need to be careful of high drawdowns though. After all, these type of stocks can be hit hardest during times of uncertainty. Lower-risk FTSE 100 value stocks? The flipside of going for the slightly aggressive option of growth stocks is to go for FTSE 100 value stocks instead. Value stocks are those that have low price-to-earnings ratios. In other words, they are seen as undervalued. As an investor, I could buy shares in these types of companies and hold them for the long term. In this way, the share price should return to a fairer value, which would represent a profit for me. Value stocks typically have lower volatility than growth stocks, which is positive. I personally think they also offer lower risk, as these are often established companies. The risk is that it can take a long time for value stocks to move back to a fair value, and the difference might not be that high. So, when looking to invest £500 or £1,000 a month in value stocks, it’ll likely take me much longer to reach my six-figure goal as my compounded returns will be lower.  Overall, I can see the merits of investing in either value or growth stocks within the FTSE 100 index. In fact, I’m not limited to selecting either option exclusively. As a result, to diversify my portfolio, I’d actually look to split up my selection into a mix of both types of stocks. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading How I’d aim to generate a rising passive income from UK dividend stocks Should I buy Biogen shares? Dechra Pharmaceuticals’ share price hits record peaks! Is it a top UK share to buy? Will Coinbase shares continue to sink? Cineworld shares are up 273% in 8 months. Am I too late to buy? jonathansmith1 has no position in any of the shares mentioned. 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. The post 2 ways I’m planning to invest in FTSE 100 stocks to get a six-figure portfolio appeared first on The Motley Fool UK.
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  12. My top FTSE 100 stocks to buy in June (02/06/2021 - The Motley Fool UK)
    The FTSE 100 has performed well over the past few months, with it now firmly over 7,000 points. This has been driven by the successful vaccine rollout and optimism among investors of a strong economic recovery. Nonetheless, I believe this has left certain stocks overpriced, and vulnerable to a correction in the near future. Therefore, it’s very important to be discerning when picking stocks, and these three FTSE 100 stocks are what I’m looking at closely for my portfolio in June. A drinks giant Diageo (LSE: DGE) has always been one of my favourite FTSE 100 stocks, and after its improved profit forecast for 2021 I’m even more optimistic. Indeed, Diageo now expects organic profit to grow by at least 14% in the year ending June 30. This announcement caused the Diageo share price to rise 4% on the day. But I believe that there’s further to rise. For instance, alongside the profit forecast, the company also stated that it was resuming its share buyback programme. This means that shareholders can expect £1bn of payments by the end of the 2022 financial year, demonstrating that the company’s liquidity is strong. That said, share buybacks can be a sign of limited growth and expansion opportunities, and this is a risk that much be considered with Diageo shares. A poor performing FTSE stock GlaxoSmithKline (LSE: GSK) has really struggled over the past year, with the shares falling by 18%. In the Q1 trading update, it was revealed that revenues have also fallen by 18%, demonstrating that the company may have limited growth ahead. Investors have also raised doubts about the future of CEO Emma Walmsley, querying whether she’s the right person to lead the FTSE 100 pharmaceuticals giant. Despite these problems, I’m more optimistic about GSK stock. Indeed, I can see changes incoming, especially once the consumer healthcare arm is spun off. This will allow GSK to focus solely on pharmaceuticals and vaccines. Personally, I think this simplification of the business is much needed, and I feel that it can return the renowned FTSE 100 stock back to growth. This is why GSK is one of my top stocks for June. An oil giant BP (LSE: BP) was one of the poorest performers in the FTSE 100 last year. However, with oil prices recovering fairly well recently, I feel that now is a good time to buy the stock. In fact, its reported profit in the first quarter was $4.7bn, compared with a loss of $4.4bn the year before. This demonstrates how the stock has managed to recover well. Further, BP has also managed to reduce its debt significantly. As such, it’s now able to return more money to shareholders through share buybacks. This is a sign of optimism for the company, while also demonstrating that the shares may be too cheap. On the other hand, oil is a risky investment, especially with questions over its future. Despite BP transitioning more into renewable energy, there are still risks over its long-term future. This must be considered in relation to the BP share price. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading 3 high-profile UK shares I’m avoiding Best shares to buy: 3 growth stocks I’d snap up now What’s going on with the BP share price? Top British stocks for June With £3,000, 3 stocks to buy and hold for the long term Stuart Blair owns shares of BP and Diageo. The Motley Fool UK has recommended Diageo and GlaxoSmithKline. 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. The post My top FTSE 100 stocks to buy in June appeared first on The Motley Fool UK.
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  13. My top FTSE 100 stocks to buy in June (02/06/2021 - The Motley Fool UK)
    The FTSE 100 has performed well over the past few months, with it now firmly over 7,000 points. This has been driven by the successful vaccine rollout and optimism among investors of a strong economic recovery. Nonetheless, I believe this has left certain stocks overpriced, and vulnerable to a correction in the near future. Therefore, it’s very important to be discerning when picking stocks, and these three FTSE 100 stocks are what I’m looking at closely for my portfolio in June. A drinks giant Diageo (LSE: DGE) has always been one of my favourite FTSE 100 stocks, and after its improved profit forecast for 2021 I’m even more optimistic. Indeed, Diageo now expects organic profit to grow by at least 14% in the year ending June 30. This announcement caused the Diageo share price to rise 4% on the day. But I believe that there’s further to rise. For instance, alongside the profit forecast, the company also stated that it was resuming its share buyback programme. This means that shareholders can expect £1bn of payments by the end of the 2022 financial year, demonstrating that the company’s liquidity is strong. That said, share buybacks can be a sign of limited growth and expansion opportunities, and this is a risk that much be considered with Diageo shares. A poor performing FTSE stock GlaxoSmithKline (LSE: GSK) has really struggled over the past year, with the shares falling by 18%. In the Q1 trading update, it was revealed that revenues have also fallen by 18%, demonstrating that the company may have limited growth ahead. Investors have also raised doubts about the future of CEO Emma Walmsley, querying whether she’s the right person to lead the FTSE 100 pharmaceuticals giant. Despite these problems, I’m more optimistic about GSK stock. Indeed, I can see changes incoming, especially once the consumer healthcare arm is spun off. This will allow GSK to focus solely on pharmaceuticals and vaccines. Personally, I think this simplification of the business is much needed, and I feel that it can return the renowned FTSE 100 stock back to growth. This is why GSK is one of my top stocks for June. An oil giant BP (LSE: BP) was one of the poorest performers in the FTSE 100 last year. However, with oil prices recovering fairly well recently, I feel that now is a good time to buy the stock. In fact, its reported profit in the first quarter was $4.7bn, compared with a loss of $4.4bn the year before. This demonstrates how the stock has managed to recover well. Further, BP has also managed to reduce its debt significantly. As such, it’s now able to return more money to shareholders through share buybacks. This is a sign of optimism for the company, while also demonstrating that the shares may be too cheap. On the other hand, oil is a risky investment, especially with questions over its future. Despite BP transitioning more into renewable energy, there are still risks over its long-term future. This must be considered in relation to the BP share price. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading 3 high-profile UK shares I’m avoiding Best shares to buy: 3 growth stocks I’d snap up now What’s going on with the BP share price? Top British stocks for June With £3,000, 3 stocks to buy and hold for the long term Stuart Blair owns shares of BP and Diageo. The Motley Fool UK has recommended Diageo and GlaxoSmithKline. 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. The post My top FTSE 100 stocks to buy in June appeared first on The Motley Fool UK.
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  14. 2 FTSE 100 investments for a Stocks and Shares ISA (07/05/2021 - The Motley Fool UK)
    The FTSE 100 has recently reached a post-pandemic high. However, despite this performance, I think it can head even higher. This is because many businesses in the lead index continue to look cheap compared to their potential.  With that in mind, here are two index champions I’d buy for my Stocks and Shares ISA today to capitalise on this trend.  FTSE 100 investments The first company I’d buy for my FTSE 100 ISA portfolio is Anglo American (LSE: AAL).  I believe this mining conglomerate is perfectly positioned to ride the global economic recovery over the next few years. According to the company’s latest trading update, production from its copper and iron ore mines increased 9% and 1% respectively for the third quarter of its financial year.  This is notable because the prices of both of these commodities have recently reached multi-year highs. Higher production and higher prices suggest Anglo could be on track to report a bumper trading performance this year.  Of course, the most considerable risk of investing in any commodity business is that prices can fall as fast as they rise. So, while the company might be profiting from rising prices today, that might not last. As such, there’s no guarantee Anglo will report bumper profits this year.  Still, I think this FTSE 100 blue-chip could be one of the best ways to invest in the global economic recovery, due to its exposure to crucial resources.  Stocks and Shares ISA buy  The second FTSE 100 stock I’d buy for my ISA right now is Informa (LSE: INF).  This company’s been hit hard by the pandemic. The business, which runs events including the China Beauty Expo and the Monaco Yacht Show, had to pull out all the stops last year when most large events were cancelled.  The largest exhibition group in the world has tried to shift events online, but this hasn’t stopped the bleeding. The FTSE 100 company swung to a £1.1bn pre-tax loss in 2020, compared to a profit of £318m the previous year. Most might shy away from investing in such a business at this time, but I’m optimistic. Management thinks the company will report sales of £1.7bn this year. Based on that projection, City analysts believe the group will earn a net income of £309m.  This is the baseline projection, and if the world’s post-coronavirus recovery accelerates, Informa could surpass this figure. I think it will. That’s why I’d buy the FTSE 100 stock today for my Stocks and Shares ISA.  Of course, there’s also a chance the company will have to revisit these figures if the pandemic drags on. In that case, I think earnings and sales would therefore disappoint, and the stock could fall in value. As such, Informa may not be suitable for all investors but, with a favourable tailwind, I think it could be a great FTSE 100 recovery play.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Anglo American shares: should I buy as copper prices rise? Should I buy Anglo American shares? Is this one of the FTSE 100’s best shares to buy in 2021? Will the Anglo American share price keep rising in 2021? These 2 FTSE 100 stocks have doubled in a year! I’d still buy them Rupert Hargreaves has no position in any of the shares mentioned. 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. The post 2 FTSE 100 investments for a Stocks and Shares ISA appeared first on The Motley Fool UK.
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  16. I think these FTSE 100 stocks are 2 of the best shares to buy for my ISA (26/03/2021 - The Motley Fool UK)
    Commodity stocks now look like some of the best shares to buy for long-term income and growth. FTSE 100-listed mining companies have been booming lately, yet there could be more to come when the post-Covid-19 recovery takes off. Commodity stocks are leading the FTSE 100 today, with Glencore (LSE: GLEN) up 3.8% and Anglo American (LSE: AAL) rising 3.1%. Of course, one day’s growth proves nothing. What matters is what happens over 10 or 20 years or longer. That’s my investment time scale. Over such a lengthy term, I expect both Glencore and Anglo American to be among the best shares to buy for both share price growth and dividend income. Recent performance has been astonishing. Both stocks have doubled over the last year, despite the pandemic. Investors have been positioning themselves for the recovery, ever since last November’s vaccine breakthrough. China remains the prime source of demand for metals and minerals, and its economy is recovering fastest. The shift towards electric cars is also driving demand for iron ore and copper, the latter of which has just hit a 10-year high of more than $9,000 a tonne. I’d buy these 2 FTSE 100 stocks Despite recent strong share price growth, Glencore and Anglo American continue to look cheap today. Glencore trades at 10.6 times forecast earnings, while Anglo American trades at just 7 times earnings. From the valuation point of view, these look like some of the best shares to buy today. This is pricing in a lot of growth over the next year, though. If the recovery flounders and commodity demand slumps, both stocks could disappoint. The sector is famously cyclical, and we need further evidence of a global rebound for them to climb higher. Right now, this is in the balance, due to vaccine delays and mutant Covid strains. Personally, I remain optimistic. Even if lockdowns drag on, I think Glencore and Anglo American will fly in the longer run. My lengthy investment timeframe gives them plenty of opportunity to do so. As well as growth, these are attractive income stocks. Glencore recently resumed dividends and is now forecast to yield 4.1%, covered 2.3 times by earnings. Anglo American looks like one of the best shares to buy for income across the entire FTSE 100, with a forecast yield of 5.5% and cover of 2.5. Two of the best shares to buy The pandemic has taken its toll, of course. Glencore has seen revenues drop by a third but it has also cut net debt below $13bn, and is even considering a share buyback later this year. Anglo American has been hit by by falling diamond sales, Covid-19 lockdowns in South Africa, and operational problems in its coal and platinum divisions. Despite that, profits have been better than expected and it has lifted its dividend. Investing in the commodity sector can be very up and down, but I still think it contains some of the best shares to buy for income and growth. Glencore and Anglo American look like top ‘buy and hold’ stocks for my Stocks and Shares ISA allowance. I also like this one. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 shares I’m adding to my Stocks and Shares ISA before the April deadline Harvey Jones has no position in any of the shares mentioned. 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. The post I think these FTSE 100 stocks are 2 of the best shares to buy for my ISA appeared first on The Motley Fool UK.
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  17. London Markets: Pound climbs to level not seen since 2018, keeping a lid on the FTSE 100 (10/05/2021 - Market Watch)
    London stocks struggled for traction on Monday, boosted by shares of mining companies as commodity prices climbed, but were held back by a strong pound.
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  18. FTSE 100 investment ideas: 4 ways I’m trying to make my cash work harder (26/02/2021 - The Motley Fool UK)
    The Bank of England base rate is currently 0.1%. When I factor-in inflation (around 0.7%), cash in my bank account is losing me value. Obviously, I need cash for various reasons. It’s great to have a rainy day fund, and cash on hand for other liabilities I wasn’t expecting. But for excess cash that I don’t really need, I personally think I should be looking at FTSE 100 investment ideas. The aim is to try and make my cash work harder for me, outperforming interest rates for my cash. Ideas for income and protection My first FTSE 100 investment idea is to target dividend shares. What kind of yield should I be expecting? Some FTSE 100 stocks have cut dividends due to the impact of the pandemic. Others have maintained the payout level, and due to a falling share price, offer a generous yield. These yields can be seen at 6% or higher. The FTSE 100 average is just above 3%.  The risk of this investment idea is that no dividend yield is guaranteed. It’s a constantly changing yield depending on the share price movement and the dividend per share. If companies struggle in 2021 and beyond, dividends may be cut again. This would decrease my income received and could be lower than I was expecting to make. A second investment idea I like at the moment is buying FTSE 100 defensive stocks. I recently wrote a piece looking at utility companies and supermarkets. From digging deeper into the financial results from 2020, it’s clear that these sectors have continued to perform well despite the pandemic. This gives me confidence to buy into these stocks now with my excess cash. Even if we see a prolonged recession in the UK, these stocks could help me to beat the FTSE 100 average performance. On the downside, defensive stocks will underperform the market if the UK economy really shines in the second half of this year. From that angle, I’d be better off buying high-growth stocks instead that perform better on positive sentiment. However, I’d try to counter any risk by splitting up my cash and investing in a mix of defensive and high-growth stocks Staying invested with a diversified portfolio This mix of FTSE 100 stocks is my third investment idea. I don’t specifically know which stock is going to be the top performer. So I’ll shake it up and own several to diversify myself. For example, I can bucket defensive stocks in one part, high-growth stocks in another, dividend stars in yet another. This mix should not only ‘blend’ my performance, but also reduce my risk to one company. Finally, my last idea is to reduce my ‘tactical trading’ once I’ve bought my FTSE 100 stocks. With cash rates low, I don’t really want to be selling out and holding cash as I wait for a new opportunity. Buying and selling frequently can actually reduce my returns. A great statistic I saw was that if I’d missed the 10 best trading days over the past 30 years by sitting in cash, my return would be reduced by 2% a year.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Stock investing: why I’d drip-feed £300 a month into an ISA Why I’m still buying FTSE 100 shares in this stock market rally Why I’d buy these 2 FTSE 100 stocks after their big events I will continue to invest regularly in dividend stocks inside a Stocks and Shares ISA in 2021 3 FTSE 100 stocks I’d buy for the dividends jonathansmith1 has no position in any of the shares mentioned. 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. The post FTSE 100 investment ideas: 4 ways I’m trying to make my cash work harder appeared first on The Motley Fool UK.
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  19. Best stocks to buy now: I think these 2 FTSE 100 shares are too cheap (29/03/2021 - The Motley Fool UK)
    In my opinion, the FTSE 100 contains some of the best stocks to buy now. Here are two companies I believe are too cheap, based on their long-term potential. FTSE 100 The first on my list is the life insurance and pension management group Phoenix (LSE: PHNX). This organisation provides a relatively complex but lucrative service. Managing pension funds can be capital-intensive, costly and fraught with regulatory risks. Even for other blue-chip companies, such as Marks & Spencer, it can be easier to outsource pension management or negotiate agreements to reduce liabilities.  Phoenix’s specialises in the acquisition and management of pension funds. By focusing on this one core area, the group can efficiently manage these assets and profit handsomely.  This business model is highly profitable, and Phoenix is committed to returning capital to investors. Analysts are predicting a 6.6% dividend yield for 2021, although this is just a forecast. At the same time, the stock is trading at a forward P/E of 8.8. Once again, these are just forecasts, but I think the company is far too cheap, considering its potential.  I’d buy the FTSE 100-listed group because I believe it has tremendous growth potential. Other blue-chips are queuing up to offload their pension obligations and this presents an enormous opportunity for the group. That said, this company isn’t without its risks. Additional layers of regulation could increase the group’s costs, pushing down profit margins. Phoenix’s large balance sheet is also complex to understand. This could mean the organisation is exposed to significant risks, which aren’t entirely visible to investors until it’s too late.  Best stocks to buy now I believe one of the best investments over the next few years will be resource companies. There are two reasons why. First of all, countries worldwide are planning to spend tens of billions of pounds over the next few years on infrastructure projects. Secondly, some economists expect inflation to increase dramatically over the next few years, and commodity prices tend to increase during periods of high inflation. So I think Anglo American (LSE: AAL) is one of the best shares to buy now in the FTSE 100 to play this theme. I’d buy the stock for my portfolio because it has a diversified collection of resource assets around the world. It produces commodities such as copper, iron ore, coal and platinum group metals.  Rising commodity prices are already having an impact on its bottom line. It’s expected to yield a total net income of $6.7bn for 2021, up from $3.6bn in 2019. Based on these estimates, the stock is trading at a forward P/E of less than 8. I think that’s far too cheap, considering its potential.  Of course, these are just projections at this stage. Commodity prices can be incredibly volatile. They can rise and fall dramatically over the space of a few weeks. As such, there’s no guarantee the company will hit this earnings target for the year. What’s more, the cost of producing commodities can increase in line with prices as suppliers try to take advantage of a booming market. These are the two most significant risks Anglo faces right now. Nevertheless, as a way to invest in the commodity boom, I think this is one of the best shares to buy now in the FTSE 100. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading I think these FTSE 100 stocks are 2 of the best shares to buy for my ISA 2 shares I’m adding to my Stocks and Shares ISA before the April deadline Why I’d buy top FTSE 100 stocks like this one to give me a passive income in retirement The post Best stocks to buy now: I think these 2 FTSE 100 shares are too cheap appeared first on The Motley Fool UK.
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  20. These two FTSE 100 stocks could pay £28bn in dividends for 2021! (07/05/2021 - The Motley Fool UK)
    During the market meltdown of March 2020, I started writing again for Fool UK for the first time since 2012. I also saw a once-in-a-generation opportunity to buy cheap shares at bargain prices. My instincts were correct: global stock markets have surged over the subsequent 14 months. The FTSE 100 index today stands at 7,066.45, almost 2,075 points above the close of 4,993.90 on 23 March 2020. That’s a gain of more than two-fifths (41.5%). However, this is thrashed by the over-80% surge in the US S&P 500 index. I still see deep value in the FTSE 100 Despite the FTSE 100’s comeback, most of its gains took place after Halloween 2020. When three highly effective Covid-19 vaccines were unveiled in early November, share prices skyrocketed worldwide. Among the biggest risers were so-called ‘value’ stocks. These shares trade on low price-to-earnings ratios (P/Es), high earnings yields, and attractive dividend yields. Despite this strong rotation from growth to value stocks, I still see great potential in large-cap FTSE 100 stocks. Here are two I’d happily buy today. Manic miners: BHP and Rio Tinto Due to the rise of ESG (environmental, social and governance) investing, many FTSE 100 stocks have fallen out of favour. These include oil & gas, tobacco, and mining companies. But I see hidden value in these unwanted and unloved shares, particularly among the heavyweights. Take the shares of miners BHP (LSE: BHP) and Rio Tinto (LSE: RIO). These two global mining giants are Goliaths in the field of digging up raw materials. But their shares remain modestly priced, even after powerful gains. At their March 2020 low, shares in Rio Tinto (‘red river’ in Spanish) had collapsed to around 3,212p. On Thursday, they closed at 6,477p, more than double their low of 14 months ago. This values the group at £106.6bn, making it a FTSE 100 super-heavyweight. In my view, Rio shares are not expensive, even after doubling. They trade on a P/E of 14.8 and an earnings yield of 6.8%. What’s more, their dividend yield is 5.3% (two percentage points above the FTSE 100’s dividend yield). As for rival BHP, its share price bottomed out at just above £10.50 during Meltdown March. On Thursday, it closed at 2,314p, valuing BHP at £128.3bn. The shares trade on a P/E of 23.3, an earnings yield of 4.3%, and a dividend yield of 5%. Not as cheap as Rio, but still alluring to me. Why I like these two mega-cap stocks One factor driving up these two FTSE 100 shares is that raw-material prices are soaring. The price of iron ore recently peaked at $193 a tonne and currently is over $190. Likewise, copper recently spiked above $10,000 a tonne to a 10-year high. Also, since the last ‘commodity super-cycle’ peaked in 2011, these two companies have slashed capital spending to strengthen their now rock-solid balance sheets. Furthermore, BHP and Rio’s 2o21 combined dividends could total $38.2bn (£27.5bn), according to JPMorgan. And who wouldn’t want their share of this torrent of cash, like an ATM on steroids? These two FTSE 100 shares have come a long way since the mining market’s lows of 2016. But mining is a highly cyclical industry, strongly tied to economic growth. If the much hoped-for multi-year economic boom fails to emerge, then these shares might suffer. But if global consumer spending surges, then the world will need more iron, copper and nickel. On balance, I’d buy both RIO and BHP today to ride the global recovery! CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading 2 FTSE 100 stocks I’d buy in May 3 FTSE 100 stocks I’d buy for passive income 3 FTSE 100 shares to buy now with £3k 3 dividend shares for passive income Cliffdarcy has no position in any of the shares mentioned. 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. The post These two FTSE 100 stocks could pay £28bn in dividends for 2021! appeared first on The Motley Fool UK.
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  21. London Markets: Mining stocks climb in London, as copper surges to all-time highs (07/05/2021 - Market Watch)
    Heavily weighted mining shares were leading gains on Friday, though the FTSE 100 scaled back gains after disappointing U.S. data.
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  22. Best dividend stocks to buy now: here’s my checklist (03/06/2021 - The Motley Fool UK)
    As an income-orientated investor, I’m always on the lookout for the best dividend stocks to buy now. This is because dividend yields are constantly changing. Although the interest rate on my cash balances doesn’t often change, dividend yields change due to movements in the share price and dividend payments. As a result, it’s handy for me to revert back to my checklist when thinking about adding new stocks into the mix. Checking why the yield is attractive It’s rare that a dividend stock would come onto my radar out of the blue. Most established FTSE 100 and FTSE 250 stocks have a history of paying dividends. So the best dividend stocks right now are likely candidates that have been on my list before.  For arguments sake, let’s say a company that I didn’t know well was offering a high dividend yield. This would interest me, and the first thing I’d look at on my checklist is why the yield is attractive. Which component was the driver – the share price or the dividend? If the driver was a falling share price, I’d be more hesitant to conclude that this was a dividend stock worth buying straight away. A falling share price could indicate that the company was in trouble. The knock-on impact of this could be that the dividend might actually be cut in the future. This might be done to preserve cash flow within the business. However, if the higher yield was driven by an increase in the dividend paid per share, this is a good sign. In this case, I’d be very interested to look at what has triggered this higher payout. If it was due to higher profits or an increased desire to pay out to shareholders, I’d consider buying the stock. The outlook for the best dividend stocks Another point on my checklist for the best dividend stocks to buy is the outlook for the company. One of the restrictions of the dividend yield calculation is that it takes the past payment figures. There isn’t a guarantee that the dividend payments for the future (after I buy the stock) would be the same. From this angle, I need to ensure that I’m happy with the future prospects for the company. I could look at what sector the business operates in and decide on that basis. For example, the reopening of the UK economy would provide a more positive outlook for areas such as retail, tourism, and travel.  A final point on my checklist is to mirror the future outlook with the past. Some of the best dividend stocks are the ones that have a solid track record of paying out dividends over several years. If I could satisfy myself that a firm with a track record of paying out income has a positive outlook, it would definitely be a stock I’d look to buy. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading FTSE 100 shares: B&M’s share price slumps as sales slow! The top UK dividend shares to buy now SThree’s share price at new highs after upgrading expectations! Here’s what I’d do now Would I buy Rolls-Royce shares or International Consolidated Airlines Group shares? 5 FTSE 100 growth stocks to buy in June jonathansmith1 has no position in any of the shares mentioned. 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. The post Best dividend stocks to buy now: here’s my checklist appeared first on The Motley Fool UK.
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  23. Here are my top stocks to buy now for my 2021 Stocks and Shares ISA (10/05/2021 - The Motley Fool UK)
    The Stocks and Shares ISA is a great investment vehicle enabled by the government. It allows me to build up a pot of investments within a specific account that is free from capital gains tax. This tax would normally be charged when I fill out my tax return each year. However, due to my ISA, I can buy and sell without needing to worry myself about it. With the new ISA year having begun in April, here are the stocks I’m looking at for my 2021 allocation. Growth stocks Each year, I want to allocate a good proportion of my Stocks and Shares ISA amount to growth stocks. This is because I’m still relatively young (cue the old man jokes) and so I’m ok to take on higher risk. Usually, growth stocks have higher volatility than others, but I’ve got a long enough time horizon to deal with this.  For this year, I’m looking to buy growth companies that could take advantage of the reopening economy. These include Watches of Switzerland, Grainger and Greggs. I think a mix of all three allows me to get good exposure to the key areas I feel could perform well. It’s not guaranteed, of course and they could perform worse than I expect. That said, rebounding retail spending and sales should aid watch and luxury purchases. A return to the workplace for some should provide a boost for a bakers like Greggs. Finally, higher rental demand for properties as people start to mobilise again should aid Grainger. Dividend stocks Aside from trying to make gains for my Stocks and Shares ISA through capital appreciation, I also want to look towards dividend payouts. This helps to balance out my overall investment pot. If my growth stocks underperform for some reason, then I’ll be able to fall back on the income I’m getting from the dividend stocks. Although I want to target yields above the FTSE 100 index average, I want to stick to names that I’m comfortable with. To this end I’d look to buy National Grid, SSE and Legal & General. In my opinion, these companies are sustainable dividend payers, and shouldn’t give me a lot of headaches from having to sell and find other dividend stocks in the near future. The above examples offer a dividend yield currently between 5% and 6%. I’m happy at this level, and so would look to invest regularly to build up exposure here. Obviously, the yield changes as the stock price fluctuates. So one potential risk here is that over the next year of populating my Stocks and Shares ISA, the dividend yield could fall. Opportunities for my Stocks and Shares ISA Based on the above, there are lots of opportunities for me to target. Unless I have a lump sum of £20,000 ready to go, I’ll be looking to invest regularly each month to ensure I maximise my allocation by April 2022. I don’t see this as a bad thing, as over the course of the year there might be fresh growth or dividend stocks for me to buy. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The basic cost of raising a child until 18 in the UK is £71,611 Why I’d invest £5k in these FTSE 100 stocks right now! Why did the Peloton share price crash last week? ITM Power’s share price has crashed. Should I buy the stock now? The Greggs (GRG) share price is rocketing. Here’s why jonathansmith1 has no position in any of the shares mentioned. 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. The post Here are my top stocks to buy now for my 2021 Stocks and Shares ISA appeared first on The Motley Fool UK.
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  24. London Markets: FTSE 100 climbs as Suez blockage sparks gains for oil prices (26/03/2021 - Market Watch)
    A major disruption to global shipping had a silver lining for London stocks on Friday, as oil prices climbed, driving up shares of heavily weighted BP and Shell, with mining companies also on the rise.
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  25. London Markets: FTSE 100 climbs as Suez blockage sparks gains for oil prices (26/03/2021 - Market Watch)
    A major disruption to global shipping had a silver lining for London stocks on Friday, as oil prices climbed, driving up shares of heavily weighted BP and Shell, with mining companies also on the rise.
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  26. Rate my port? (14/02/2021 - Reddit Stocks)
    Should I sell my RY, ENB, CM and just buy some ETFs? ​ VOO 31 shares QQQ 27 shares RY.TO 48 shares ENB.TO 100 shares CM.TO 38 shares VGRO.TO 92 shares ARKK 10 shares VFV.TO 11 shares XUU.TO 22 shares ARKG 3 shares XIT.TO 7 shares VCN.TO 9 shares   submitted by   /u/FeignNewb [link]   [comments]
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  27. The FTSE 100 has hit 7,000. Here are 4 reasons I think it could rise further (20/04/2021 - The Motley Fool UK)
    The FTSE 100 index zoomed past 7,000 points last week. For me, this is a key milestone. Investors have not seen this level since the pandemic began. I reckon the index could rise further from here and here are four reasons why. #1 – Coronavirus I think most would agree that the pandemic has been brutal. But I think the worst is over. There are several vaccines available and the inoculation rollout so far has been a success. There have been concerns over vaccine supply issues… and blood clot fears. But most scientists indicate that the benefits of having the jab outweigh the risks. On this basis, I think investors are looking past the peak pessimism and focusing on the world post-Covid-19. The higher number of vaccinations means that businesses can reopen and take on more staff. This means that money is likely to pour into stock markets that have been hit by the pandemic and the UK’s leading index could be one of them. I think the FTSE 100 could rise further from here. #2 – More companies This year has seen a number of companies coming to the London stock market. I have commented on a few of them. These include the likes of Moonpig, Trustpilot and more recently, Deliveroo. Companies are likely to list when optimism is high. This way a higher valuation could be obtained. This also means there’s more choice for an investor like me. I feel that as more firms list on the London Stock Exchange, investors are likely to pour more money in. This could in turn boost the value of the UK’s leading index. #3 – Positive data We can’t ignore the fact that the FTSE 100 is impacted by other global stock markets. Recent economic data from China and the US indicate that a global recovery is happening. In fact, the S&P 500 index hit a record high last week. Again, this highlights a positive sentiment. This is likely to have a knock-on effect on the FTSE 100, thereby causing it to rise from its current level. #4 – Value stocks Values stocks are typically shares that are unloved but have the potential to recover. There have been numerous companies that have been hit hard by the pandemic and could be considered as potential value stocks. Last year, tech stocks had a lot of momentum since many people were working from home. But I think in 2021, plenty of investors will be switching to value stocks instead. Some of these include energy companies and banks, which dominate the FTSE 100 index. I reckon money could be poured into these shares. Risks It’s great that the UK stock market seems to be recovering. But this also means that it could be sensitive to any negative news. Further virus variants, lockdowns or delays in the vaccine rollout could result in the FTSE 100 index falling. I’m mindful that it will not be smooth sailing and I certainly expect some volatility. But in general, I’m confident the worst is over and the UK stock market can rise further. “This Stock Could Be Like Buying Amazon in 1997” 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! More reading 2 cheap penny stocks and 1 FTSE 100 share to buy in my ISA! 2 penny stocks to buy in a Stocks and Shares ISA today Should I buy Coinbase shares after the IPO? 2 FTSE 250 penny stocks I’d buy as the index hits new highs Is financial advice worth the money? Nadia Yaqub has no position in any of the shares mentioned. 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. The post The FTSE 100 has hit 7,000. Here are 4 reasons I think it could rise further appeared first on The Motley Fool UK.
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  28. The best shares to buy now: 2 FTSE 100 stocks I’ve been buying (13/02/2021 - The Motley Fool UK)
    I believe investors don’t need too look far to find the best shares to buy now. In fact, I’ve been finding what I believe to be undervalued investments in the FTSE 100 recently. Here are two of them I’ve been adding to my portfolio.  My picks of the best shares to buy now  At the top of my list is the consumer goods giant Unilever (LSE: ULVR). Shares in this company fell heavily after it released its full-year figures two weeks ago. Despite reporting an increase in sales for 2020, and reinstating growth targets, the market sold the stock.  The FTSE 100 company is targeting annual sales growth of between 3% and 5%. It intends to achieve this through a combination of organic growth, reinvesting in its existing brands, and acquisitions. However, despite management’s optimistic growth outlook, the company is facing challenges. One of these is increasing costs. These increased last year and squeezed Unilever’s margins. Investors seem to be worried that this trend could continue. That may impact Unilever’s bottom line. Some analysts have also expressed concern the group may lose out to smaller, more innovative peers. That’s always a risk the business faces. It’s something management has been able to deal with until this point, which gives me confidence about the future.  Overall, while Unilever faces challenges, I think this is one of the best shares to buy now after recent declines. If management can hit its ambitious growth targets, I think the company could prove to be an attractive investment. With more than 50% of the group’s sales coming from emerging markets, I think it’s also an excellent way to gain access to these fast-growing economies.  FTSE 100 stocks on offer Another company I’ve been buying recently for my portfolio is Reckitt Benckiser (LSE: RB). This firm, which specialises in cleaning products and consumer healthcare, has seen sales jump over the past few months. High demand for cleaning products in the pandemic has more than offset a slowdown in other parts of the business.  This growth is unlikely to last forever. As such, Reckitt’s future success will depend on management’s ability to deploy excess profits generated over the past 12 months into new growth initiatives. On this topic, management is planning to increase research and development spending, as well as marketing spend. These may be enough to maintain Reckitt’s expansion over the next few years. That’s why I’ve picked this out as one of the best shares to buy now.  That said, this FTSE 100 company isn’t without its challenges. Like Unilever, rising costs and smaller competitors may threaten Reckitt’s growth rate. These are challenges every business faces. However, Reckitt is particularly susceptible because the business earns high profit margins. This may attract competitors into the group’s market, making it harder for the consumer goods giant.  Nevertheless, I think the company is well equipped to deal with these challenges. That’s why I believe this FTSE 100 firm is one of the best shares to buy now.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Why I won’t be rushing to buy Unilever shares Top income stocks for February 2021 2 FTSE 100 shares I’d add to my Stocks and Shares ISA in February 2 cheap UK shares I’d buy during this stock market recovery The Unilever share price is under 4,000p. Here’s what I’m doing now Rupert Hargreaves owns shares in Unilever and Reckitt Benckiser. The Motley Fool UK has recommended Unilever. 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. The post The best shares to buy now: 2 FTSE 100 stocks I’ve been buying appeared first on The Motley Fool UK.
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  29. Best stocks to buy now: 2 FTSE 100 reopening shares (24/05/2021 - The Motley Fool UK)
    As the reopening of the UK economy continues, I believe some of the best stocks to buy now are businesses that may benefit from this trend. As such, here are two FTSE 100 companies that I’d buy for my portfolio.  Best stocks to buy now The first company on my list is the catering group Compass (LSE: CPG). Before the pandemic, this enterprise operated a relatively profitable business. Contract catering requires little upfront investment as the facilities and equipment are usually owned by the client. This allowed the company to generate robust profit margins and a strong return on investment before the pandemic. However, over the past 12 months, the company’s revenue has slumped. It reported a 30.4% decline in its last financial year. In addition, operating margins fell from 7% before the pandemic, to 3.4%.  The thing is, the pandemic may have disrupted many of the company’s markets, but people are still eating. This suggests to me that as the economy recovers and reopens, Compass’s revenues should return.  This is the primary reason why I believe Compass is one of the best shares to buy now. I think the group should return to growth over the next 12-24 months as the world gets back to normal.  That said, it’s unlikely to be plain sailing for the FTSE 100 company over the next few months. It’s unclear if office workers will ever return in pre-pandemic numbers. It could also be sometime before large events return. Further, another coronavirus wave may set its recovery back months.  Despite these risks, I’d buy the FTSE 100 company for my portfolio of recovery stocks today. FTSE 100 growth The other company I believe is one of the best shares to buy now for a recovery portfolio is InterContinental Hotels (LSE: IHG). Just like Compass, this company has suffered significantly over the past 12 months. But the owner of hotel brands such as Holiday Inn, Crowne Plaza, and InterContinental should see a return to growth as travel and tourism activity worldwide recovers. Indeed, the company is already reporting a pick-up in demand. According to its latest trading update, occupancy across its hotels was around 40% at the end of March. However, management noted there was “clear evidence” that revenues would increase substantially in the months ahead, based on forward-booking trends.   Of course, if there’s another coronavirus wave, these trends will mean nothing. Customers will cancel, and the company will return to stage one. That’s the most considerable risk the business faces right now. It could also struggle due to excess capacity in the hotel sector.  Still, I’d buy InterContinental Hotels for my portfolio of FTSE 100 recovery shares today despite these risks and challenges. As a way to play the economic rebound, overall I think this is one of the best shares to buy now.  The Motley Fool UK's Top Income Stock… We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading FTSE 100 shares: the Compass share price slips despite sales improvement Would I buy these 2 FTSE 100 reopening stocks now? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Compass Group and InterContinental Hotels Group. 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. The post Best stocks to buy now: 2 FTSE 100 reopening shares appeared first on The Motley Fool UK.
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  30. Why I’d invest £5,000 now in UK shares in an ISA to make a passive income (16/02/2021 - The Motley Fool UK)
    Making a passive income from UK shares has become more difficult over the last year. The coronavirus pandemic prompted financial uncertainty for many companies across the FTSE 350. This resulted in reduced dividend payouts, or even a cancellation of dividends in some cases. However, the economic outlook is set to get better. This may mean improved performances for many businesses that lead to higher dividend payouts. Alongside the capital growth potential of UK stocks, this could make now the right time to invest £5,000, or any other amount, in a diverse selection of income shares in an ISA. Buying UK shares to make a passive income Despite many UK shares cutting their dividends, it is still possible to make a generous passive income from FTSE 350 shares. In fact, both the FTSE 100 and FTSE 250 trade lower than they did a year ago. As such, some of their members have share prices that are down on their previous highs. This could mean that they now offer higher yields than they did a year ago – as long as they have been able to maintain their dividend payouts. This could mean that it is possible to obtain a 4% or 5% average yield from a portfolio of UK stocks. In a low-interest-rate environment, this could be a relatively high income return. It also has the capacity to rise at an above-inflation pace over the coming years. The world and UK economies are widely forecast to recover strongly as vaccine rollouts continue. This could prompt improving operating conditions for many UK shares that allow them to pay higher dividends over the long term. UK stocks could offer capital growth Investing £5,000 in UK shares could also be a shrewd move because of their capital growth prospects. Many FTSE 350 shares trade on valuations that are significantly below their historic averages. This could signal that they offer wide margins of safety that produce relatively high returns. Since the stock market has historically reverted to its long-term average values, buying today’s cheap shares may be a profitable move. Doing so through a tax-efficient account such as a Stocks and Shares ISA could offer further improvements to returns. The lack of capital gains tax or dividend tax charged on investments in an ISA may widen the gap in total returns versus a bog-standard share dealing account. Risk management Of course, there is never any guarantee of a passive income or capital growth from a portfolio of UK shares. They could experience very tough operating conditions in future that are not fully reflected in their current valuations. However, with dividends forecast to grow in the coming years, yields being high in a low-interest-rate environment and the economic outlook expected to improve, UK stocks could offer impressive total returns in the long term. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 5% dividend yields! 2 UK shares I’d buy now for passive income UK investing: why I’d buy FTSE 100 shares today The Tesco share price: here’s what I’m doing now UK stock investing: 3 growth shares I’d buy right now Which UK and US stocks should I buy in February? 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. The post Why I’d invest £5,000 now in UK shares in an ISA to make a passive income appeared first on The Motley Fool UK.
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  31. How I’d invest my first £1k in UK shares (13/06/2021 - The Motley Fool UK)
    The stock market can be a daunting place for first-time investors. There are 100 blue-chip UK shares in the FTSE 100 and a further 250 companies in FTSE 250. On top of these, there are around 600 stocks that make up the FTSE All-Share. This index includes both the FTSE 100 and FTSE 250. But that’s just a section of the market. In total, there are more than 2,000 stocks listed in London. That excludes investment funds. With so many options to choose from, it can be almost impossible for beginners to decide where to start.  So if I had £1,000 to make my first investment in UK shares, I’d keep things simple. Rather than trying to find stocks to buy in the FTSE All-Share, I’d stick to the FTSE 100.  UK shares to buy  The highly successful investor and fund manager Peter Lynch suggests investors should only buy stocks in businesses they’re familiar with. As such, I’d only buy FTSE 100 stocks for my portfolio of UK shares that are household names.  The first stock I’d buy is BT. I’m excited about the outlook for this telecoms giant. As the firm invests more in its operations and builds out its fibre broadband network, I reckon earnings will return to growth. This growth could support a substantial dividend from the business, although there’s no guarantee this will happen.  Another household name I’d buy for my portfolio of UK shares is Royal Mail. This company has benefited from a surge in demand for its parcel delivery services over the past 12 months. The enterprise is planning to use these windfall profits to invest in its operations, which is the right choice, in my view. By reinvesting profits, the firm can build on last year’s expansion, and that may translate into earnings growth in the years ahead. The investment could also help the company compete more effectively with competitors, which are constantly nipping at its heels. This is the most significant challenge the enterprise faces right now.  Another household name I’d buy for my portfolio is Just Eat Takeaway. This is one of the handful of tech shares in the FTSE 100. Like Royal Mail, the company experienced strong growth last year as the pandemic confined consumers to their homes. The group now plans to use its own windfall profits to improve awareness of its brand. However, this may not lead to growth as its deep-pocketed competitors, such as Uber Eats, are also doing the same. Diversified portfolio By acquiring the three UK shares outlined above, I think I can build a well-diversified portfolio across different sectors. All three companies are also experiencing strong growth and have plans to increase their footprints in the months and years ahead. When coupled with the UK economic recovery, I think these twin tailwinds could lead to solid returns.  However, investing in equities can be risky, so this strategy might not suit all investors. Especially considering the risks facing these particular businesses. The post How I’d invest my first £1k in UK shares appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading UK shares to buy: 1 stock I’d acquire today How Warren Buffett’s advice could help me invest £1k How I’d invest £5k in cheap UK dividend shares Penny stocks: 3 UK shares I’d buy now Bargain or bust: will the Petrofac share price bounce back? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. 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.
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  32. 3 FTSE 100 stocks I’d buy in my ISA (19/05/2021 - The Motley Fool UK)
    Here are three FTSE 100 shares I’m thinking of buying for my Stocks and Shares ISA today. Digital love I think that WPP’s (LSE: WPP) steps in the post-Martin Sorrell era to embrace digital media should pay off handsomely. Not only is this section of the advertising market booming, I believe this FTSE 100 share has the scale and the expertise to make the most of this vast opportunity. Magna Intelligence reckons ad spending on digital formats in the US will soar 13% in 2021 to $161bn. This means that digital will account for two-thirds of all advertising expenditure for the first time. I like WPP’s drive to improve its clout in this area through shrewd acquisitions like that of DTI in February. But remember that a thirst for M&A action is a risky business and can cause profits to miss targets if acquisitions don’t perform as expected. A top FTSE 100 cyclical stock I’m also thinking of adding building products supplier CRH (LSE: CRH) to my Stocks and Shares ISA today. Prices of this FTSE 100 firm just hit fresh all-time highs. And it’s not a secret as to why. It can expect demand for its products to boom as the US infrastructure stimulus programme cranks into gear. Conditions in some of its other markets (like housing) remain strong too and should improve as the public health emergency steadily recedes. Indeed, a shortage of building products in some of its key markets has allowed the company to continue to make pricing progress in recent months. Like-for-like sales moved 3% higher between January and March. CRH is an ultra-cyclical stock and demand for its wares could suddenly dive if the coronavirus crisis flares up again. Still, I think it is of the best value stocks to buy right now. The FTSE 100 firm changes hands on a forward price-to-earnings (PEG) ratio of 0.2. A reading below 1 suggests that a share could be undervalued. Another great ISA buy? I already own Coca-Cola HBC (LSE: CCH) shares in my investment portfolio. And I’m tempted to buy some more following last week’s upbeat trading statement. The beverages bottler said that like-for-like sales had improved 6.1% between January and March. Even as Covid-19 lockdowns continued to pressure its out-of-home channel, the unrivalled popularity of the Coca-Cola brand and other labels like Fanta and Schweppes, and the efforts it has made to boost ‘at home’ sales continued to pay off handsomely. I’m also encouraged by the FTSE 100 firm’s success in growth areas like energy drinks (volumes of these beverage rose by double-digits in the first quarter). I think Coca-Cola HBC is a great way to make delicious shareholder returns without drama. But I’m aware that the business operates in an ultra-competitive industry, which could have a significant impact on revenues and profit margins. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 2 top FTSE 100 ethical stocks Should I buy these FTSE 100 shares in my ISA in May? 3 reasons why this FTSE 100 stock is one of my top picks for 2021 The Coca-Cola HBC (LSE:CCH) share price steadily rises. Should I invest? Royston Wild owns shares of Coca-Cola HBC. 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. The post 3 FTSE 100 stocks I’d buy in my ISA appeared first on The Motley Fool UK.
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  33. Howdy! looking for suggestions. (16/04/2021 - Reddit Stocks)
    Howdy, i am a 21 year old in my final semester at Texas A&M. Currently I old 3 shares of QQQ and 10 shares of Apple. I have a bout $2,000 of usable cash to continue to put into one of the stocks. I have a steady job making about $800 every other week. However i am looking to move apartments in july and will basically be using this transaction as a way to get a little more out of my $2,000 (treating it like a savings account that grows) and probably sell if i need a little cash while i’m moving. I have a job lined up in the fall to start teaching where i will put more of my income into stocks. i was wondering if y’all think i should buy about 9 shares of apple or 3 shares of QQQ? thanks and gig em for any help!   submitted by   /u/Tboner989 [link]   [comments]
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  34. Why I’m still adding FTSE 100 shares to my best stocks to buy now list (13/02/2021 - The Motley Fool UK)
    FTSE 100 shares could offer long-term capital growth potential from their current price levels. After all, the index continues to trade below its record high. This suggests many of its members could be undervalued at the present time. Furthermore, the outlook for the world economy is widely forecast to improve in future. This may create more attractive operating conditions that makes FTSE 100 companies among the best stocks to buy now. Clearly, they’ve risks ahead of them. But through diversification and obtaining a margin of safety it may be possible to reduce potential threats. FTSE 100 shares trading at low prices Many FTSE 100 shares continue to trade at prices that are significantly below their all-time highs. The lead index is currently around 10% down on its price level from a year ago. This suggests there may be opportunities to buy a range of companies while they offer wide margins of safety. Investor sentiment towards some industries is weaker than towards others. For example, consumer goods companies have higher valuations than banks, retailers or travel & leisure businesses in general. This is understandable, since less popular industries among investors may face more challenging operating environments. However, where FTSE 100 shares have the financial means to overcome future difficulties, they could offer recovery potential. In many cases, investors may have priced in the potential for weak financial performance in the coming months. Therefore, there may be scope for an expansion in valuations among today’s unloved industries. This could make large-cap shares among the best stocks to buy now. The potential for an economic recovery FTSE 100 shares may also be among the best shares to buy now because of their long-term growth prospects. Clearly, there’s never any guarantee that the world economy will post positive GDP growth. It continues to face major risks, such as coronavirus, that could hold back its performance for some time. However, the scale of stimulus packages being rolled out and the vaccines being administered could allow many industries to face less disruption in future. This may contribute to improved operating conditions that strengthen their financial performances. The result of this effect on company valuations from across the FTSE 100 could be relatively positive over the coming years. This may catalyse a period of stronger growth for many large-cap shares that’s not currently reflected in their valuations. Reducing risks through diversification Although FTSE 100 shares may have a size and scale advantage versus smaller peers, and may be more diversified than small-caps, they still carry significant risks. As such, it’s prudent to invest in a wide range of businesses instead of concentrating capital on a more limited number of companies. Doing so can reduce overall risks. And that can lead to higher returns in the long run. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Carnival share price plunges 60%! Should I buy the stock? Should I buy this 6%+ yielding oil stock instead of BP or Shell? Desperate to save? Try a no-spend challenge Reasons I’m investing in FTSE 100 shares right now Why I’d buy dividend shares with more than just high yields in this stock market recovery 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. The post Why I’m still adding FTSE 100 shares to my best stocks to buy now list appeared first on The Motley Fool UK.
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  35. Best shares to buy now: 2 FTSE 100 stocks I’m buying (30/05/2021 - The Motley Fool UK)
    I think some of the best shares to buy now are located in the FTSE 100. And I’m putting my money where my mouth is. Over the past few weeks, I have been buying three blue-chip stocks, which now form the foundations of my portfolio.  Best shares to buy now The first company on my list is Reckitt (LSE: RKT). This enterprise has reported strong sales growth during the pandemic. During the first quarter, revenue rose 4.1% on a like-for-like basis. A strong performance in the group’s hygiene division, which accounts for around 80% of revenue, helped drive overall sales higher. What’s more, thanks to increased investment in e-commerce over the past year, online sales were 24% higher. As a result, online sales now account for 13% of overall revenues.  Going forward, the company is planning to invest £2bn in research development to discover new products. I think that investment should help drive sales growth for years to come. The company is also looking for buyers for its underperforming Chinese infant child nutrition business, which has been a consistent underperformer. Based on these growth and restructuring initiatives, I have been buying the stock for my portfolio today.  One critical risk hanging over the stock is debt. At 2.4 times underlying cash profits, debt is a bit on the high side, I feel. A sudden increase in interest rates or increase in costs could impact debt affordability. This may cause problems across the company. Another risk is the possibility that the Chinese infant nutrition business does not find any buyers. That could leave the company with this struggling division.  Despite these risks and challenges, I think this FTSE 100 consumer goods business is one of the best shares to buy now. That’s why I have been adding it to my portfolio recently.  FTSE 100 growth Another stock I have been buying his FTSE 100 insurance group Admiral (LSE: ADM).  This is not the largest insurance company in the country, but it is the most efficient. It has been able to leverage technology and its understanding of customers to improve customer service and efficiency.  According to its employees, the business is also one of the best places to work in the UK.  As well as this accolade, the company is also incredibly well managed. It has recently been diversifying away from the mature UK insurance market. The group is expanding into loans and the car insurance market overseas.  Overall, I think this is one of the best shares to buy now, considering its potential. Admiral has conquered the UK insurance market. It’s now focusing its efforts overseas.  Of course, it’s unlikely to be plain sailing for the group as it tries to conquer new markets. For example, many UK businesses have struggled to enter America. Admiral may be no different. This could be the most considerable risk the company faces today. An overzealous expansion programme could lump the group with significant liabilities and costs, holding back growth.  Even after taking this risk into account, I have recently bought more of the FTSE 100 stock for my portfolio. I continue to believe this is one of the best shares to buy now, considering its growth potential.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading FTSE 100 shares I’d buy for large and growing dividends Will the Admiral share price reach £35? 3 of the best FTSE 100 stocks to buy today The FTSE 100 is falling: three 7% dividend yield shares I’d buy now 3 of the best cheap UK stocks to buy in an ISA! Rupert Hargreaves owns shares in Admiral Group and Reckitt. The Motley Fool UK has recommended Admiral Group. 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. The post Best shares to buy now: 2 FTSE 100 stocks I’m buying appeared first on The Motley Fool UK.
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  36. Here’s why I’m investing in FTSE 100 stocks rather than the booming property market (01/06/2021 - The Motley Fool UK)
    FTSE 100 stocks and UK house prices have both been booming over the last year. Today, it’s the turn of property prices to hit the headlines, as latest Nationwide figures show they have jumped 10.9% in the year to May. This is incredible, given the challenges of the last year. Record low mortgage rates, the stamp duty holiday and a widespread urge for space following the trauma of lockdown are driving demand. Yet houses are not the only assets rising. FTSE 100 stocks have also been going gangbusters. The index of blue-chip shares is up 14.3% over the last year, to trade at 7,102. That’s slightly faster growth than house prices (with dividends on top). But this short-term success isn’t the reason I favour FTSE 100 stocks over becoming a buy-to-let investor. I think they are streets ahead for a host of reasons. Buy-to-let is a bother FTSE 100 and FTSE 250 stocks, which I focus my efforts on, are just so easy to buy. I can buy them in seconds for a flat dealing fee of £10, or less. In today’s overheated market, buying property takes four to five months from bid to completion. Another reason I favour FTSE 100 stocks is that the stamp duty is just 0.5%. Anybody buying property today is almost certain to miss the stamp duty holiday due to processing delays, while buy-to-let investors face a 3% surcharge. From 1 October, a £250,000 property will incur £10,000 in stamp duty. The bill rises to a thumping £24,000 on a £450,000 investment property. Plus there are other costs, such as legal costs, survey and mortgage arrangement fees. After I’ve chosen my FTSE 100 stocks, I don’t have to do very much, apart from check how they’re doing from time to time. Of course, I also have to accept that they might not be doing very well. But that relatively easy approach isn’t the case with property. Owners have to do up their property, maintain it, pay utility bills, meet council tax obligations, and so on. I’m sticking with FTSE 100 stocks If I rented my property out as a buy-to-let, I’d need to find tenants, interview them, take deposits, answer their emergency calls and replace them when they left. Either that, or pay a letting agent to do it for me. As any landlord will tell me, the regulatory burden has increased massively. With FTSE 100 stocks, there’s none of that. I know buy-to-let can be a good option for some people. But it’s not for me. I don’t want to pay capital gains tax on any profit when I sell, at either 18% or 28%, depending on my tax bracket. When I buy FTSE 100 stocks inside my Stocks and Shares ISA allowance, I don’t have to worry about CGT at all. My dividend income will be free of tax as well, whereas rental income from tenants is taxable. I don’t even have to mention ISA holdings on my tax return. That saves a lot of admin too.  That’s why I’m shunning buy-to-let, and will stick to investing in FTSE 100 stocks instead. These tempt me right now. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading How I’d invest £250 a month in cheap UK shares to aim for a six-figure portfolio Is the AMC Entertainment share price a bubble? Freetrade thinks these 3 ‘alternative’ dividend stocks are worth a second look Here’s a UK technology share I’d buy right now 1 AIM stock to avoid Harvey Jones has no position in any of the shares mentioned. 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. The post Here’s why I’m investing in FTSE 100 stocks rather than the booming property market appeared first on The Motley Fool UK.
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  37. The FTSE 100 index: the best shares to buy now (28/02/2021 - The Motley Fool UK)
    The FTSE 100 index is made up of the UK’s top blue-chip companies. I think some of the best shares to buy now can also be found in this flagship market.  With that in mind, here are a section of FTSE 100 stocks that I would buy for my portfolio right now.  Best shares to buy now Whenever I look for possible investments, I like to consider their past performance and future potential. While past performance should never be used as a guide to future potential, I think looking at a company’s past performance can tell us something about its strengths, weaknesses, opportunities and threats.  One FTSE 100 index company that has an outstanding growth record is Admiral. One of the country’s largest car insurers, this business has been relentlessly focused on customer service since its founding. I think this has helped the organisation capture a significant share of the UK car insurance market. And as long as this focus on customer service continues, I reckon the business will continue to attract customers.  Unfortunately, that won’t guarantee success. Insurance can be an unpredictable business. A large storm or pandemic can and has uprooted the financial plans of many insurance companies. Admiral will always face these threats. Nevertheless, I’m comfortable with the risk of investing here. That’s why I would buy the stock for my portfolio today.  FTSE 100 index income  I would also buy M&G. This wealth management group has struggled to attract investor attention over the past year. I think that could be an opportunity. The company’s brand is recognised the world over, which is a strong competitive advantage. It has also shown a willingness to return large amounts of cash to investors when times are good. Analysts believe the group could return as much as 17.4p per share in dividends this year. That suggests a dividend yield of nearly 9% on the current share price. This distribution is far from guaranteed, however, as it is only a prediction. The company faces plenty of risks to its growth as well. Challenges such as increasing costs and regulatory demands may hurt profit. That would limit M&G’s ability to meet these dividend targets.  Defence contractor BAE Systems is another corporation in the FTSE 100 index I’d add to my portfolio today. I think this defence contractor offers certainty in uncertain times. The company signs multi-year defence contracts with countries around the world. These contracts guarantee a revenue stream for years and, as they are backed by countries, it’s unlikely the buyer will become bankrupt. That said, this business isn’t without its risk. Some investors may not want to be part of the defence industry. BAE is also at risk from potential lawsuits because it operates in quite a legally sensitive sector. There are also limits on who it can and can’t sell products to, which could hit growth in the long term. The company has managed to navigate these challenges in the past, but that does not mean that it will continue to do so as we advance.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading FTSE 100 stocks: is Admiral Group a dividend stock I’d buy? My 2 favourite FTSE 100 stocks right now £2k to invest? I’d buy these 2 cheap FTSE 100 stocks ahead of the recovery My 3 favourite dividend shares right now FTSE 100: 2 cheap shares I’d add to my Stocks and Shares ISA today Rupert Hargreaves owns shares in Admiral Group. The Motley Fool UK has recommended Admiral Group. 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. The post The FTSE 100 index: the best shares to buy now appeared first on The Motley Fool UK.
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  38. 3 ways I’d aim to build a £250k investment pot using a Stocks and Shares ISA (17/05/2021 - The Motley Fool UK)
    I see my Stocks and Shares ISA as my main place where I’m trying to build my wealth. It’s easy for me to check and see the current valuation, and also is easy to regularly pay money into it each month. I like to try and keep all my shares here as it enables me to not pay capital gains tax on any profits I make. This makes is easier over time to build up a sizeable investment pot. Different factors to consider To go about building a Stocks and Shares ISA worth £250k, I need to go about setting some parameters. An important one is the time period involved. A £250k aim in a few months is technically impossible. If I’m happy to wait for a decade or more, then it becomes a lot easier to try and model things around that.  Another factor I need to think about is how much I can afford to invest at the beginning, and then over time. The Stocks and Shares ISA has a subscription limit of £20k per year, so this is the maximum I can put in. But I don’t need to do this all in one go. Rather, I could invest just over £1,600 a month instead. If this is too much for me, then I don’t have to feel pressured to put in the full £20k a year. I don’t get penalized for not using the full allowance each year. The final parameter I want to think about is what risk tolerance I’m happy to take on. The general correlation is that a higher return comes with higher risk. So I could get to a Stocks and Shares ISA worth £250k quicker via higher risk growth stocks. Yet I might not feel comfortable with the high drawdowns or potential losses. A Stocks and Shares ISA worth £250k Once I’ve got it clear in my head what parameters I’m happy to stick to, there are several ways I can go about making my investment pot grow. The quickest way would be to invest £20k at the start of each ISA season (in early April). This would allow the maximum time for that allocation in my Stocks and Shares ISA to grow each year. Within this, I’d look to invest in high growth stocks. Assuming an 8% annual growth rate, this would get me to my £250k goal after nine years.  Another way would be to look to invest £1,000 a month into my ISA, with a blend of growth stocks and more conservative stocks. This would lower the annual return, and the lower investment amount would increase the time needed to reach £250k. The benefit here would be that my risk would be lower. Further, it would hurt my cash flow less each month by investing £1,000 instead of having to fork out a large lump sum. Finally, I could decide to build my Stocks and Shares ISA via income paying stocks. If I invested £1,000 a month into companies that offered a dividend yield of 5%, I could reinvest this income back into stocks. I could also hopefully benefit from some capital appreciation as well. No allocation fits everyone, but from considering a few examples I can see which one fits best for me. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading UK shares: 3 ways I’d invest £3k today Here’s how I’d protect my FTSE 100 portfolio from an inflation shock FTSE 100 stocks I’d buy as the UK economy powers ahead Is a sharp 13% crash in this FTSE 100 stock a buying opportunity for me? The FTSE 100 index just touched a 14-month high. Here’s what I think comes next jonathansmith1 has no position in any of the shares mentioned. 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. The post 3 ways I’d aim to build a £250k investment pot using a Stocks and Shares ISA appeared first on The Motley Fool UK.
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  39. Reasons I’m investing in FTSE 100 shares right now (13/02/2021 - The Motley Fool UK)
    Over the last 12 months, the FTSE 100 has fallen by 13%. FTSE 100 shares are often from ‘old’ industries such as oil & gas and banking. The UK’s elite index has been left behind by those indexes, such as the S&P 500, that have more exciting, innovative technology companies. While I want some exposure to that, and indeed have an S&P 500 tracker, I think 2021 could be a year of recovery for the FTSE 100. However, a great deal depends on the virus, the vaccine rollout, and the hopefully resulting economic recovery. 4 reasons that give me optimism The first reason is value. Value is relative, but in my opinion the FTSE 100 offers plenty of scope for recovery from the pandemic, especially from financials. Low price-to-earnings ratios make me comfortable investing in UK large caps, such as banks and insurers. This provides a potential margin of safety.  As alluded to there could also be a boost in 2021 from shares bouncing back. All the more so if the economy does well as some commentators, and I, think it will do. The flipside, of course, is the economy may not do well and banks and oil & gas and industries that dominate the FTSE 100 may continue to underperform. I think although there is plenty of innovation out there, many FTSE 100 companies are built on proven business models. I think in most cases, these should endure through the coming years and for decades to come. Even big companies have some agility and with good management often have the financial resources to move with the times. An example of this is Royal Dutch Shell investing heavily in renewables as its industry changes.  Fourth, with dividends having been cut in 2020, there’s plenty of scope for dividend growth in the coming years. This is something I’m personally very excited about. So I plan to pick up a future passive income on the cheap.  What are the drawbacks of FTSE 100 shares Despite the cheapness of many FTSE 100 shares there’s a risk it could continue to underperform the US, as it starkly did in 2020. If lockdowns continue to inflate the share prices of technology companies, then investing in that market could be a better option. Also, some investment professionals are arguing emerging markets could have a strong 2020 as the dollar depreciates. The UK could of course by knocked off course by new strains of the virus that vaccines can’t be adapted to protect against. Technology companies could continue prefer listing in the US over the UK, which could hold back the market. As yet unknown consequences of Brexit could come to the fore, despite recent positive comments from the Barclays CEO. All these could hit the FTSE 100 and consequently the shares of UK large-cap companies. However, on the balance of things and as I’m based in the UK I plan that a lot of my new investments, cash permitting, will be in FTSE 100 shares. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Desperate to save? Try a no-spend challenge Why I’d buy dividend shares with more than just high yields in this stock market recovery Top income stocks for February 2021 Energy stocks and funds: oil, renewables, or a combination? My investment strategy 3 FTSE 100 shares from my best stocks to buy now list Andy Ross owns no share mentioned. 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. The post Reasons I’m investing in FTSE 100 shares right now appeared first on The Motley Fool UK.
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  40. Why is the FTSE 100 is rising? (12/05/2021 - The Motley Fool UK)
    In mid-April 2021, the FTSE 100 breached the 7,000-point mark for the first time since before the pandemic. Most recently, on Friday 7 May, the index surged to a 15-month high of over 7,100 points. But what exactly is behind the FTSE 100’s recent surge? We have the answers. [top_pitch] What has happened to the FTSE 100 in the last 12 months? Stock markets around the world went into steep decline in the first part of 2020. The FTSE 100 tracks the performance of the 100 biggest companies listed on the London Stock Exchange. It started the year at 7,542 points. The index plunged to below 5,000 points in mid-March as the scale of the Coronavirus pandemic became clear and fears about its impact on the global economy grew. The FTSE 100 made a recovery alongside the economy later in the year after the intervention of the government and the Bank of England. However, the FTSE 100 still managed to clock its worst year on record since the 2008 financial crisis. The FTSE’s total losses in 2020 came to 14.3%. This made it the worst performer among the world’s largest stock indexes. In 2021, though, things are looking up. The index has been rising steadily in the last couple of months. What is causing the FTSE 100 to rise? Various factors have contributed to the FTSE 100’s rise to more than 7,100 points. The biggest factor appears to be greater optimism about the UK’s economic recovery. Over the last few weeks, several financial institutions and economists have expressed that the UK economy is set for its biggest boom since the post-war period. This is on the back of a hugely successful rollout of the Covid-19 vaccine and the anticipated reopening of the country. Indeed, growing optimism about the recovery of the UK economy has prompted British businesses to increase hiring and offer higher pay to new employees, according to Reuters. The impact of a positive economic outlook is an increase in investor confidence. This, in turn, is driving the FTSE 100 higher. As investors become more confident about the prospects of the economy, they are increasingly willing to put their money into riskier assets like stocks and shares. This includes the stocks and shares of FTSE 100 companies, which investors expect to profit from in 2021 as pent-up demand is unleashed into the market once the country reopens fully. [middle_pitch] How high could the FTSE 100 go? That is the big question. The FTSE 100’s all-time high is 7,903.50. It achieved this feat in 2018. We have already seen other stock indexes from around the world, including the S&P 500 and the Nasdaq Composite, recover their pandemic losses to reach new highs in the last few weeks. Could the FTSE also hit a new all-time high in 2021? We’ll have to wait and see on that one. The UK’s economy is not expected to recover to pre-pandemic levels until at least the second quarter of 2022. But if the current recovery trend is sustained, and if there are no major setbacks in regards to the fight against the pandemic, there is no reason why the FTSE 100 should not continue to rise. This is certainly good news for investors. “This Stock Could Be Like Buying Amazon in 1997” 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! More reading FTSE 100 stocks I’d buy as the UK economy powers ahead The Glencore share price is up 10% already this week. What’s going on? The FTSE 100’s Spirax-Sarco share price soars as it expects to beat guidance! Should I buy Airbnb shares now? 3 UK shares to buy today The post Why is the FTSE 100 is rising? appeared first on The Motley Fool UK.
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  41. Here’s how I’d find cheap UK shares to buy now (31/05/2021 - The Motley Fool UK)
    It is great that stock markets have got some of their mojo back. But a downside is that cheap UK shares are getting harder to find.  Many shares’ prices are either back to pre-pandemic levels or well past them. Even in terms of valuations, as measured by the price-to-earnings (P/E) ratio, they are at high double digits.  But all is not lost as far as bargain hunting goes. I think there are still buying opportunities for me in three kinds of stocks. #1. Reopening stocks Not all reopening stocks have been lucky enough to reach pre-pandemic highs so far. An example is the FTSE 250 cinema chain Cineworld, which is still at half its pre-market crash levels.  The challenge with Cineworld and the like is that its financial health is now compromised. But I think that the stock still has good prospects as cinemas have reopened in both its key UK and US markets. Over time, as its performance improves, so can its share price.  The downside here is that it can take time to bounce back. In other words, these stocks are for the long-term investor in me.  #2. Under the radar stocks There is also a buying opportunity for me in smaller UK shares. Sometimes high-performing companies can remain under the radar for a while before investors catch up to their potential. I like to keep an eye out for these stocks.  One such for me is the FTSE 250 iron ore miner Ferrexpo. When I wrote about it in March, its P/E ratio was 3.6 times. It is at 6 times now, clearly because other investors too saw value in this commodity investment. I still think it is still a cheap UK share, though, with its P/E is still way below that of its FTSE 100 mining peers.   Sometimes there can be a catch to stocks that look good but that have a muted share price. I think is the case for tobacco stocks. Imperial Brands has a P/E of 5.5 times, despite being a profitable company because the future of tobacco is in question. So I consider low priced shares carefully.  #3. Out of favour stocks Investors tend to favour different stocks based on where we are in the business cycle. During times of economic growth, cyclical stocks like mining, retail, and restaurants tend to perform because consumption is on the rise. This makes them attractive to investors. Similarly, during slowdowns, safer stocks like utilities and healthcare with relatively stable demand make more attractive buys.  With a cyclical upturn underway, safe stocks are out of favour. As a result, they are now available at relatively lower prices. An example is the FTSE 100 healthcare giant AstraZeneca, which is still way below the all-time-highs touched last year. That its Covid-19 vaccination has also been mired in controversy has not helped, and neither has its acquisition of US-based Alexion. But its latest results clearly indicate that it is still a good buy for me for the long term.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Where will the Lloyds share price go in June? How I’d invest my first £1,000 in a Stocks and Shares ISA today The ‘secret’ Warren Buffett tip that could make investors a fortune 3 FTSE 100 stocks to buy in June 3 UK penny stocks I’d buy in June Manika Premsingh owns shares of AstraZeneca. 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. The post Here’s how I’d find cheap UK shares to buy now appeared first on The Motley Fool UK.
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  42. Stock market crash 2021: here’s what I’d do if it happens (01/03/2021 - The Motley Fool UK)
    As stock market investors we need to be prepared for all possibilities. This includes being prepared for a stock market crash, as we have learned from last year’s experience. Typically, it is unlikely that a big stock market crash in one year is followed by another the next year, but it does no harm to be ready.  Where did the stock market rally go? If we look at the stock market indexes in February, it is evident that the stock market rally has vanished. In fact, there was a fall in the FTSE 100 index average compared to January.  This may not be sustained or result in a market crash. Vaccinations, stimulus, low interest rates, and a growth bounce back are big reasons for the financial markets to stay buoyant.  Unless there is a fresh surge in coronavirus cases or the economy is in a far worse state than any of us imagine at this point, I think UK shares are set to do well in 2021.  What if there is another stock market crash? But if the risks play out, here are the three things I would do.  #1. Buy fear: I’d keep funds aside for investing when share prices are low. Many FTSE 100 shares have more than doubled from the lows they hit when the stock market crashed. In fact, many of them gained soon after. And this includes even those that were the worst hit like travel and tourism stocks.  If I think there is real long-term value to these stocks, I would not hesitate before buying these shares. I reckon that they could double my money in just a few months, but even if they do not, it is a great way to buy high-quality stocks at low prices.  #2. Hold on: I would hold on to my portfolio stocks. Even if at the moment there was little money to be made, I would not like to lose any. All gains and losses are notional until we sell the shares we hold. And a market crash is never the time to sell otherwise higher value stocks.  #3. Load up: This is true for income stocks as well. A low or no-growth income stock can be a real drag on the investment portfolio. Many companies stopped paying dividends last year and, as a result, their share prices fell even further.  But if I had loaded up on those stocks then, today my dividend yield on them would be even better after they reinstated passive income.  The take away In sum, the three things I would do are – buy, hold, and load up on existing holdings. I know it is easier said than done. We really never know whether the path ahead will get better or get worse. But if past stock market crashes are any indication of the trend, then we would be better off getting really optimistic when things go bad. It can be quite good for our investments.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 3 UK shares to buy for a Stocks and Shares ISA Could investing in NIO stock today be like buying Tesla in 2015? 2 of the best UK shares to buy this March Royal Mail shares: is it the right time to buy? Can the IAG share price continue climbing after last week’s results? Views expressed 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. The post Stock market crash 2021: here’s what I’d do if it happens appeared first on The Motley Fool UK.
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  43. FTSE 100: these 5 shares are falling fast. Which would I buy today? (03/03/2021 - The Motley Fool UK)
    So far in 2021, the UK FTSE 100 index has actually beaten the US S&P 500 index. As I write, the Footsie trades around 6,646, up 185 points (2.9%) in 2021. The S&P 500 is up around 90 points in 2021, only 2.4% ahead. Given the huge outperformance of the S&P over the Footsie for the past decade, perhaps the tide is turning in favour of UK shares? The FTSE 100’s biggest fallers over one month Of course, not all FTSE 100 shares have risen in 2021. As well as some big gainers, there have been some huge howlers. For example, take these five sliding stocks, the worst performers in the Footsie over one month: FTSE 100 member 1W 1M 3M 6M Unilever (Consumer staples) -2.8% –10.1% -13.3% -15.6% SSE (Energy) -3.3% –10.2% -2.5% 8.3% GlaxoSmithKline (Pharma) -0.5% –10.9% -13.3% -17.8% Just Eat Takeaway.com (Food delivery) -1.7% –17.4% -13.9% -15.0% Ocado Group (Grocery tech) -6.5% –21.4% -0.1% -8.0% Which stocks wouldn’t I buy today? As you can see, the FTSE 100’s worst performer over the past month is online grocer Ocado. Its shares have crashed more than a fifth (21.4%) in a month. Then again, Ocado stock is up 95% over one year, 303.2% over three years, and 770.1% over five years. This makes it the FTSE 100’s best performer over five years, so it’s hardly surprising its shares are taking a breather after such magnificent gains. The second-worst FTSE 100 stock over the past month is Just Eat Takeaway (JET). This food-delivery firm is known for its Just Eat UK brand. Although JET shares have dived by more than a sixth (17.4%), they are up 1.9% over the past 12 months. JET is a fast-growing company, booming in the pandemic and popular with growth investors. But it keeps making large losses as it scales up. Hence, as a value investor, JET is not for me. I’d buy these two value shares Third on my list of laggards is global pharma giant GlaxoSmithKline (GSK). The GSK share price has declined by more than a tenth (10.9%) over one month. It’s also been one of the FTSE 100’s worst performers over six and 12 months. GSK is the largest individual holding in my family portfolio, so its recent weakness — down a quarter (25%) in a year — has cost us plenty. At the current share price of 1,206p, GSK has a price-to-earnings ratio of 10.6 and an earnings yield of 9.5%. At over 6.6%, GSK’s yearly dividend yield is more than double that of the wider Footsie. These fundamentals look cheap to me, so I will keep buying more GSK stock. Second, I also like the look of consumer-goods colossus Unilever, which sells more than 400 brands worldwide. Every day, more than 2.5bn people use Unilever products. That’s almost a third of the global population. Yet the Unilever share price is down a tenth (10.1%) over a month and almost a sixth (15.6%) over six months. At the current share price of 3,805p, Unilever trades on a price-to-earnings ratio of 20.8% and an earnings yield of 4.8%. The dividend yield of 3.9% is useful and, as an income-hungry investor, I’d welcome it in my family portfolio. Hence, Unilever is the second stock I’d buy from these five FTSE 100 fallers. In summary, as a FTSE 100 value investor and income-seeker, I’m not put off by falling share prices. However, what works for me might not work for you. Thus, please take great care when selecting your shares! One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Investing in renewables: 5 UK shares I expect to rally in 2021 What is a ‘stonk’ tip? How I’d invest £1,000 in UK shares right now 5 UK shares I’d buy after Budget 2021 2 shares to buy today for my Stocks and Shares ISA Cliffdarcy owns shares in GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline, Just Eat Takeaway.com N.V., and Unilever. 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. The post FTSE 100: these 5 shares are falling fast. Which would I buy today? appeared first on The Motley Fool UK.
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  44. FTSE 100 shares I’d buy for large and growing dividends (23/05/2021 - The Motley Fool UK)
    FTSE 100 shares are arguably still undervalued. It’s often argued UK companies remain cheap when compared to other regions of the world. A spate of recent purchases of UK-listed companies gives some credibility to this argument. A combination of value, as well as income from dividends as they recover and grow post pandemic, have brought these two FTSE 100 shares onto my radar. Cheap FTSE 100 miner Rio Tinto (LSE: RIO) is one of the world’s leading mining companies. It certainly won’t be everyone’s cup of tea on ESG grounds, but if I look past that, it’s a FTSE 100 share that strikes me as being good for income. The dividend payout has been particularly strong in recent years, with consecutive special dividends pushing up the yield. The current dividend yield is 5.2%, far above the average for the FTSE 100. Projections are the dividend could end up being more like 10%.  A weaker than expected start to 2021 is a risk I’ll keep an eye on. I think expectations for miners are high as economies reopen following the pandemic. Underperformance will likely hit the share price. Another risk is around the reputational damage caused by blowing up sacred caves in Australia. The incident has had political recriminations and led to executive replacements and a pay revolt from shareholders. Rio Tinto is certainly not a buy and forget share. The mining industry is too cyclical for that. However, for the next few years it could be a sector that produces strong and growing dividends. More evidence of a commodities supercycle, where commodities do well for an extended period of time, might encourage me to buy the shares. Steady, defensive company The insurance company Admiral (LSE: ADM) is a more defensive high-yielding FTSE 100 share. In that way, it would potentially complement the more adventurous Rio Tinto in my portfolio. Admiral has a dividend yield of 4%, slightly above the FTSE 100 average, but more importantly than that it raised its dividend by just under 44% between 2019 and 2020. That’s an impressive rate of growth for a FTSE 100-listed company. It is a strong sign of confidence from management. The insurer has a business model that provides it with income no matter what the economic backdrop is. That’s why I believe it will be able to keep paying a large, but also growing, dividend. Since lockdown, it has performed particularly well financially. The share price has also done well over at the same time. In the year to 31 December 2020, pre-tax profit from continuing operations pushed up 20% to £608.2m. The insurer also gained more customers. With earnings per share also growing year-on-year, I’m confident that Admiral is a well run company with a profitable future. Both Rio Tinto and Admiral are FTSE 100 shares that I think could perform well over the coming years. I also happen to think in my portfolio the cyclical miner and the defensive insurer could make a complementary pairing. The Motley Fool UK's Top Income Stock… We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading Will the Admiral share price reach £35? The FTSE 100 is falling: three 7% dividend yield shares I’d buy now Why I’d invest £5k in these FTSE 100 stocks right now! These two FTSE 100 stocks could pay £28bn in dividends for 2021! 2 FTSE 100 stocks I’d buy in May Andy Ross owns no share mentioned. The Motley Fool UK has recommended Admiral Group. 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. The post FTSE 100 shares I’d buy for large and growing dividends appeared first on The Motley Fool UK.
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  45. Can these shares drive the FTSE 100 above 8,000 points in 2021? (29/05/2021 - The Motley Fool UK)
    The FTSE 100 got off to a rocky start in 2021. But since March it has been gaining ground. It closed Friday at 7,034 points, up 9% since the start of the year. And it almost managed to stay above 7,000 points for a whole week, except for a dip to 6,998 points on Wednesday. Will the FTSE 100 ever break through 8,000 points. And will it stay there? My guess is yes times two. The Footsie has had one of the worst decades I’ve seen. But over the long term, it’s always got through down spells and carried on upwards. I don’t expect that to stop. So what about 2021? I’ve been thinking about the stocks that are driving the FTSE 100 this year. And I’m seeing positive signs that companies in a number of sectors are emerging from the pandemic in a better state than expected. The banks appear to be coming out of it reasonably strongly. I’ll pick just two. Barclays shares are up 25% so far in 2021, which is way ahead of the index. And Lloyds Banking Group is doing even better, up more than 35%. Bad debt provisions made by the banks during the pandemic appear to have been unnecessarily high. And freeing up some of that could help boost dividends. Back to Brexit It’s possible that the 2020 crash has been hiding the horrors that Brexit will become. And that could depress the banks again. But I think the effects will be less tough than I’d feared. If the banks keep on heading up, that should help the FTSE 100 for the rest of the year. If you’d asked me last year which companies I thought would hold back the FTSE 100 in 2021, I would not have hesitated to point to BP and Royal Dutch Shell. Over the short term, we had another oil price slump. And over the longer term, we face the climate change crisis and the urgent need to drastically cut our dependency on hydrocarbon fuels. BP even chose the depths of the crash to announce its net-zero plans. And that gave the shares another kicking. But, though both oilies are well down from their pre-pandemic prices, they’re faring reasonably well in 2021. Shell has gained only 2.6%, but BP shares are up 20% so far. So maybe they won’t be the drag that I’d feared. FTSE 100 drag? Among the biggest FTSE 100 stocks there’s Unilever, which does fine in the long term. But after a relatively resilient pandemic spell, the shares have been falling back. So far in 2021, Unilever is down 5%. So that could put a drag on the index as investors move away from last year’s safety flight. AstraZeneca is up there too. After an early 2021 wobble, the shares are now up 9.5% year-to-date. We’re looking at a trailing P/E of around 40, though. So maybe AstraZeneca won’t do much to drive the FTSE this year. I’d never make an investment decision based on where I thought any price was likely to go in just one year. But I am bullish over the FTSE 100’s prospects for the coming years. Where will it end 2021? I’ll stick my finger in the air and guess around 7,500 points. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading 3 penny stocks I’d buy in June Top British stocks for June Despite rising inflation, I’ll keep buying cheap UK shares! 2 UK shares I’d buy with £2k Will house prices drop after the stamp duty holiday? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays, Lloyds Banking Group, and Unilever. 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. The post Can these shares drive the FTSE 100 above 8,000 points in 2021? appeared first on The Motley Fool UK.
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  46. I think these 2 dividend stocks could be among the best UK shares to buy today (09/02/2021 - The Motley Fool UK)
    Dividend stocks could be a means of obtaining a passive income in 2021. However, they may offer more than just a generous income return. Income shares could become more popular in an era where low interest rates may remain in place for a prolonged period of time. Furthermore, today’s high-yielding shares could offer good value for money, as well as dividend growth potential over the coming years. With that in mind, here are two FTSE 100 dividend shares that could be worth buying at the present time. An improving outlook relative to other dividend stocks SSE could become increasingly attractive relative to other dividend stocks in the next few years. The renewables-focused utility company recently updated the market on its performance. It remains on track to meet its guidance to deliver dividend growth that’s at or above inflation over the next few years. This could make the stock more appealing over the medium term because of the potential for inflation to move higher. A loose monetary policy may mean the price level increases at a faster pace in future than it has done in the past. Alongside the company’s 5.4% yield, this could make it an attractive FTSE 100 share to buy at the present time. A high-yielding UK share at a relatively low price While many UK shares have risen sharply in the recent stock market rally, GlaxoSmithKline (GSK) isn’t among them. Its shares have continued to fall over recent months so that it’s now among the highest-yielding dividend stocks in the FTSE 100. Its 6% dividend yield could make it attractive from an income perspective, since many FTSE 100 shares have considerably lower yields at the present time. Certainly, its dividends have failed to rise in recent years on a per share basis. They could even come under pressure over the coming years as the company embarks on major structural and organisational changes. However, those changes could catalyse its financial performance over the long run, and may be priced in to the company’s valuation via a relatively high yield. Potential risks from buying income stocks Of course, dividend stocks don’t guarantee investors will receive any passive income. They could, for example, experience challenging operating conditions that restrict their ability to pay out profit to investors. Similarly, they may decide to retain capital in what remains a tough economic outlook. This could have a detrimental impact on their income prospects. However, with other assets potentially offering low returns in a low interest rate environment, dividend shares such as GSK and SSE could be attractive as part of a diverse portfolio of stocks. When combined with other companies, they may offer an attractive passive income that grows over the coming years. This could increase their appeal on a relative basis and allow them to command higher share prices that translate into impressive total returns for investors. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The BHP share price is fluctuating! Is this FTSE 100 mining stock worth buying? 2 UK stocks from my ‘best shares to buy now’ list 2 FTSE 100 shares I’d buy today for passive income Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 Omega Diagnostics: Is it a buy after its almost 35% rise today? Peter Stephens owns shares of GlaxoSmithKline and SSE. The Motley Fool UK has recommended GlaxoSmithKline. 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. The post I think these 2 dividend stocks could be among the best UK shares to buy today appeared first on The Motley Fool UK.
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  47. 2 UK shares to buy today in a Stocks & Shares ISA (15/02/2021 - The Motley Fool UK)
    The world is a very different place compared with this day one year ago. Covid-19 was spreading rapidly throughout Europe, but the alarm was relatively low in the UK. Fast-forward to today, and after several lockdowns and the UK economy shrinking a record 9.9% during 2020, many might think that opportunity in the stock market is limited. I still see a lot of value in buying UK shares in a Stocks and Shares ISA, though. A Stocks and Shares ISA allows me to invest my money in the stock market, rather than having it sit as cash in my bank account. UK citizens have an allowance of £20,000 for the tax year in which they can receive tax breaks. While there is more risk involved than in a Cash ISA, Stocks and Shares ISAs can be a good way to get started in the stock market. But what UK shares would I add to my ISA today? While the FTSE 100 is down in the last 12 months, I think these three companies could represent a buying opportunity. Bargain hunting One UK share which seems to have benefited from the impact of the pandemic is B&M European Value Retail (LSE:BME). The discount store owner announced a special dividend payout of £200m in January, working out at 20p a share. That payout was in response to revenue growth of 22.5% in the group’s third quarter. The general retailer’s sales have surged since Covid-19 hit, as its shops remained open as an essential goods supplier.  B&M has also seen sales increase as most of its stores operate in retail parks as opposed to town centres, which have been adversely affected. That said, the shares have already risen 48% over the last year and the risk is that they are close to their peak. B&M is also at risk from rising inflation as its margins can be hurt by distribution costs.  I’d still buy B&M, however, as its outlook remains strong. I think budget retail is only like to improve as the financial fallout of Covid-19 continues.  Spirited recovery Beer and spirits maker Diageo (LSE:DGE) is another UK share I’d add to my Stocks and Shares ISA at the moment. While ongoing restrictions on the hospitality sector have had a major impact on sales of beer, Diageo’s spirit sales have gone up in key markets due to good off-trade performance. My feeling is that pubs and restaurants will start to creep open in the months ahead as the vaccine rollout gathers pace. I think this will ultimately return the Guinness owner to its pre-Covid-19 price of around 3,200p. There is a risk that further mutations of the virus could lead to further closures in 2020 and beyond. That could hurt the Diageo shares depending on the severity of the restrictions.  For now I see enough upside from the current 3,035p price to add Diageo to my Stocks and Shares ISA. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Diageo share price is falling, but I’d still buy this top FTSE 100 stock Should I sell my Diageo shares today? FTSE 100 stocks: here’s why I’m buying these 2 growth shares I think these are the best shares I could buy now to make money from the stock market Here’s why I think this FTSE 100 stock could be among the best shares to buy today conorcoyle owns shares of Diageo. The Motley Fool UK has recommended B&M European Value and Diageo. 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. The post 2 UK shares to buy today in a Stocks & Shares ISA appeared first on The Motley Fool UK.
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  48. Why I think the FTSE 100 is a good place to start investing in UK stocks (14/02/2021 - The Motley Fool UK)
    I think the FTSE 100 is a good place to start investing in UK stocks, and this is why. Firstly, the UK stock market contains over 500 companies ranging from the best of the best to a poor excuse for a business. The FTSE 100 is the most well-known UK financial index, followed by the FTSE 250. Together they make up the FTSE 350. The top 100 UK listed companies, measured by market capitalization, are in the FTSE 100 and the next 250 in the FTSE 250. Both these indexes contain quality UK stocks that have reached a level of acceptance in society and thus a notable market cap. Of course, that’s not to say there aren’t a few questionable companies in the FTSE 350, but on the whole it’s a fairly good starting point for choosing quality companies to invest in for the long term. The next well-known UK stock index is the FTSE AIM All-Share. It has a few popular companies, such as ASOS, Boohoo, and Fevertree Drinks, but it also contains a raft of penny shares that are best avoided by the novice investor for their high levels of risk. Using a checklist to start investing I think the key to successful investing is choosing businesses that offer value to both shareholders and consumers. That way they’re more likely to be successful far into the future. When I’m looking for stocks to invest in, here are a few things I consider: A competent team at the helm, operating with integrity. I like to understand the business and where it stands in the current and future economic environment. I look for a business with an edge on its competition. A dividend is a nice bonus, if it doesn’t detract from the strength of the balance sheet. Competent team Billionaire investor Warren Buffett is a good example to look to when planning a long-term investing strategy. He’s been in the game for several decades, and his phenomenal wealth paints a picture of success. While Buffet himself gets the credit for his company, Berkshire Hathaway’s wins, it’s not just him behind its success. His colleague and good friend, Charlie Munger, is also a major cog in the wheel. Their investing wingmen, Todd Combs and Ted Weschler, are very good at their jobs too. The integrity at the top goes a long way to instilling investor faith and keeping shareholders on board. Understanding UK stocks It’s easy to get caught up in the hype surrounding a new or exciting-looking business. But I think it’s important to take the time to understand the businesses I’m investing in. I want to hold my investments for the long term and for that reason I want to be sure I’m investing in something that’s going to outpace the competition and bring me decent shareholder returns. Another of Buffett’s nuggets of wisdom is to invest in a business you understand. He really understands the insurance industry, and it’s become one of his most lucrative investments. I think the FTSE 100 is a good place to start when choosing the best shares to buy now because it offers established companies with a global reach. Several of these are household names that tick the boxes on my list.  For regular stock market investing ideas and help with choosing the best UK shares to buy now, sign up to The Motley Fool today. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading I’d buy this UK share in my Stocks and Shares ISA for a long economic downturn Stock investing: 2 of the best FTSE 100 shares I’d buy right now This UK share is up 1,900% in 5 years: why I’d still buy it today Stock investing: 5 UK shares to buy today The Rolls-Royce share price is down 66% this year. Here’s what I’d do now Kirsteen has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Berkshire Hathaway (B shares). The Motley Fool UK has recommended ASOS, boohoo group, and Fevertree Drinks and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). 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. The post Why I think the FTSE 100 is a good place to start investing in UK stocks appeared first on The Motley Fool UK.
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  49. Why I’d invest £5k in these FTSE 100 stocks right now! (10/05/2021 - The Motley Fool UK)
    As the global economy starts to recover from the coronavirus pandemic, I have been looking for FTSE 100 stocks to add to my portfolio. There are two blue-chip companies, in particular, I think will benefit more than most from the recovery. FTSE 100 recovery stocks  Over the past six months, the price of iron ore has surged. The commodity, which is a critical component of steel, has benefited from two different tailwinds. These are rising demand and constrained supply as the pandemic has wreaked havoc with global supply chains. As a result, in the past few days, the iron ore price has hit an all-time high of more than $220 per tonne in Asia. This is fantastic news for producers of the commodity such as Rio Tinto (LSE: RIO) and BHP (LSE:BHP). The former is the largest iron ore producer globally, while the latter is the world’s largest miner, full stop. Both have colossal iron ore operations and benefit from significant economies of scale. Take Rio, for example. According to the miner’s first-quarter trading update, management is targeting iron ore production of 325mt-340mt this year. The company’s production cost per tonne will be in the range of $16.70 to $17.70.  Meanwhile, towards the end of April, BHP announced it was on track to achieve the upper end of its full-year iron ore target range of 276mt-286mt. In addition, management is trying to push production costs down to the lowest level in the industry.  There will be other costs to consider, but assuming BHP and Rio can mine a tonne of iron ore for less than $20, and it’s selling for more than $220, that implies these FTSE 100 firms are set for bumper paydays this year.  Risks and challenges The one considerable risk of investing in mining companies is that commodity prices can fall as fast as they rise. BHP and Rio may be on track to generate record profits this year based on today’s prices, but there’s no guarantee the environment will last. Another wave of coronavirus or sudden increase in interest rates could lead to a slump in demand. This could have a significant adverse effect on the shares. It may also jeopardise these companies’ dividend plans for the year. Analysts are forecasting a yield of 7.8% on BHP’s shares and 10.1% for Rio. These are just forecasts at this stage.  Still, despite these risks and challenges, I think the outlook for both of these companies is bright. As such, I’d invest £5,000 in both FTSE 100 stocks today. I believe the economic recovery should help keep iron ore prices elevated for some time. Of course, they may not stay at record levels. But Rio and BHP’s low cost of production should work in the two firms’ favour if the price of the steel ingredient suddenly collapses.  CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading These two FTSE 100 stocks could pay £28bn in dividends for 2021! 2 FTSE 100 stocks I’d buy in May 3 FTSE 100 stocks I’d buy for passive income 3 FTSE 100 shares to buy now with £3k Rupert Hargreaves has no position in any of the shares mentioned. 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. The post Why I’d invest £5k in these FTSE 100 stocks right now! appeared first on The Motley Fool UK.
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  50. FTSE 100: these were the best shares to buy in the market crash a year ago! (23/03/2021 - The Motley Fool UK)
    Remember life before lockdowns? Exactly a year ago today, on Monday, March 23, 2020, Boris Johnson said people must stay at home and various businesses would close. That was also the day when the FTSE 100 index crashed to its 2020 trough. On ‘Meltdown Monday’ (as I call it), the Footsie dived to an intraday low of 4,922.8 points. It then bounced to close at 4,993.9. Having ended 2019 at 7,587.1, the FTSE 100 had shed almost 2,600 points. That’s a collapse of more than a third (34.2%) in under three months. The FTSE 100 bounces back Famed banker Baron Rothschild once wisely remarked: “Buy when there’s blood in the streets, even if the blood is your own.” As it turned out, buying shares exactly a year ago today would have been an excellent decision. As I write, the FTSE 100 hovers around 6,706 points. That’s a gain of more than 1,700 points since Meltdown Monday’s closing low. If you’d bought the FTSE 100 at that day’s close, you would be up more than a third (34.3%) today. Not all FTSE 100 shares have recovered Of course, as a broad market index, the FTSE 100 tells us nothing about the performance of individual members. As you’d expect, some shares did spectacularly well, while others fell badly behind. Since Meltdown Monday, 93 of the 101 shares in the FTSE 100 index have gained in value. The average gain across all 93 risers is an impressive 60%. At the other end of the spectrum, eight stocks fell in value over one year. The average loss among these eight laggards is 6.2%, with losses ranging from 0.3% to 15%. Alas, unfortunately for me, my largest individual shareholding languishes at #100/101 in this list. Oops. These were the best shares to buy a year ago For the record, these five FTSE 100 shares have made the biggest gains since 23 March 2020: Entain (Betting & gambling) +329.3% Ashtead Group (Equipment rental) +195.5% Antofagasta (Mining) +163.5% Intermediate Capital Group (Asset management) +160.9% Flutter Entertainment (Betting & gambling) +158.6% As you can see, each of these five winners has absolutely thrashed the FTSE 100’s 34.3% gain since Meltdown Monday. Gains for these five champions range from almost 159% at Flutter to a whopping almost 330% at Entain. Interestingly, both of these index-beating stocks are active in the same market: betting and gambling. When the UK went into lockdown a year ago, high-street bookmakers were forced to close. As a result, sports betting and gambling migrated online, boosting returns for gaming companies. Of the remaining three gainers, Ashtead is a leader in renting out industrial equipment, largely in the US, UK and Canada. Its share price almost halved during the Covid-19 crisis, but has roared back to hit an all-time high, nearing £43. Antofagasta (known as ‘Fags’ in the City) is a leading copper miner, with huge operations in Chile. With the price of copper almost doubling over the past year (up 86.8%), Fags is riding high. Lastly, alternative-asset manager ICG provides funds to growing companies. Its services are growing fast as firms scramble to shore up their balance sheets. Would I buy any of these shares today? My honest answer is: I don’t know. As a veteran value investor, I prefer to hunt for unloved and overlooked shares with potential for future growth. Given that these five FTSE 100 stocks have all exploded over the past year, I suspect that none would make my watchlist today. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Passive income investing: my 4 steps to go from £0 to £500 a month 1 passive income stock I’d buy before the Stocks & Shares ISA deadline The Yu share price is up 400% in 1 year! Should I buy now? 1 stock I’d buy and 1 I’d avoid for my Stocks and Shares ISA FTSE 100: 3 of the best shares to buy today Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK owns shares of Flutter Entertainment. 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. The post FTSE 100: these were the best shares to buy in the market crash a year ago! appeared first on The Motley Fool UK.
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