Image source: Getty Images Like many investors seeking to earn a second income from their investments, I’m not at the stage where my portfolio will deliver a life-changing passive income. As such, my focus for now is on building wealth within the portfolio. That means making monthly contributions, investing carefully in growth-oriented stocks to try to beat the market, and reinvesting any gains to compound. So, where am I looking to invest? High-potential stocks CompanyPEG (FWD)P/E (FWD)Revenue growth yoyProfit marginCommScope Holding Company0.9813.2133.82%41.06%Innovative Aerosystems0.3414.9872.82%45.18%Micron Technology0.2213.9948.85%39.79%Nvidia1.0137.7965.22%70.05%Sanmina Corporation0.6416.187.4%8.81%Seagate Technology0.9224.3531.56%37% You may wonder why I’m suggesting two of the largest companies in the world…
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Image source: Getty Images I absolutely love my Self-Invested Personal Pension (SIPP). Like the Stocks and Shares ISA, it gives me protection from capital gains and dividend taxes. On top of this, it gives me a juicy regular bonus in the form of tax relief. I’ve just had some lovely tax relief drop into my SIPP. And I’ve dug out two FTSE 100 stocks to potentially invest it in: Games Workshop (LSE:GAW) and Scottish Mortgage Investment Trust (LSE:SMT). Want to know why I think they’re stock market winners? Please note that tax treatment depends on the individual circumstances of each…
Image source: Getty Images The FTSE 250‘s back in business and booming again after a rocky November. Things are especially hot over at Mitchells and Butlers (LSE:MAB) — its share price rocketed 12.1% on Friday (28 November). The pub and restaurant operator hasn’t boomed by a broader improvement in market confidence though. Instead, a release of blowout full-year trading numbers have driven the All Bar One and Toby Carvery owner through the roof. Yet despite these stunning gains, Mitchells and Butlers’ shares still look dirt cheap on paper. Can the publican keep rising after hitting last week’s multi-month highs? Market-beater…
Image source: Getty Images Lloyds (LSE: LLOY) share price is trading up at levels not seen since early November 2008. But it is still under £1, which might seem counter-intuitively undervalued for one of the UK’s ‘Big Four’ banks. The key point here for me is that a stock’s price is not the same as its value. This is because price is just an indication of what the market will pay for a share at any given time. But value reflects the true worth of the underlying business’s fundamentals. Spotting the gap between price and value can deliver long-term profits.…
Image source: Getty Images FTSE 100 housebuilder Taylor Wimpey (LSE: TW) is down 23% in the past 12 months. As a stock’s dividend yield rises when its price falls, this has pushed up the return to a whopping 9.4%. This is more than triple the current FTSE 100 average of 3.1%. It is also more than double the ‘risk-free rate’ (the 10-year UK government bond yield) of 4.4%. Having bought the stock a while back, I wonder if now is the time to buy more? What’s my key consideration? My primary concern is how reliably it can maintain such a…
Image source: Getty Images FTSE 250 investment manager Aberdeen’s (LSE: ABDN) current dividend yield is 7.1%. This is derived from its 2024 dividend of 14.6p and its present share price of £2.06. As such, it is a cornerstone of my dividend income portfolio. This has been designed to deliver a high dividend income that I can use in retirement to have more fun than the State Pension might allow. Of course, dividend yields change as a stock’s price and/or its annual dividend payout alters. So, what is the outlook for Aberdeen’s? History repeating? They do say that past performance is…
Image source: Getty Images The FTSE 100 is packed full of exciting dividend shares, with a dozen yielding 5% or more. I’ve flagged three income stocks at the higher end of the yield scale. The rewards are high, but what about the risks? Look at Legal & General’s yield! I’ve started with the highest yielder on the FTSE 100, Legal & General Group (LSE: LGEN). This pays income of 8.7%, and has a solid record of dividend growth this millennium. It did cut shareholder payouts in 2008 and 2009, but that was during the financial crisis. It froze them during…
Image source: Rolls-Royce plc I think most investors are now aware of the spectacular rise in Rolls-Royce’s (LSE: RR) share price. But I also believe that many remain unaware of three key elements that could drive the shares even higher. So, what are they? It’s still comparatively undervalued Rolls-Royce still looks very undervalued on the key price-to-earnings (P/E) ratio measure against its peers, and by a long way. It currently trades at a ratio of just 14.9, while its competitor average is more than double that – at 30.1. These comprise Northrop Grumman at 20.1, BAE Systems at 24.9, RTX…
Image source: Getty Images I’m hoping to have some funds to invest in my Self-Invested personal Pension (SIPP) or Stocks and Shares ISA this month. So I’m building a list of FTSE 100 shares to consider buying when the money hits my account. The three on my radar have already enjoyed stunning share price gains over the last three months: Babcock International (LSE:BAB), HSBC (LSE:HSBA) and National Grid (LSE:NG.). Each has delivered outperformed the broader FTSE index (+6%) during the past three months. I’m expecting them to keep heading higher. But what makes them such brilliant potential buys for me?…
Image source: Getty Images This month, I’m looking at a couple of growth stocks that I’ve seen as too expensive for some time. But while their share prices haven’t moved much, the companies have made good progress. As a result, I think the equation is much more favourable for investors. And that’s something I’m thinking of taking a closer look at for my Stocks and Shares ISA. Wise Wise (LSE:WISE) is a stock I’ve changed my mind on several times over the last few years. But I’m feeling a lot more positive about it now than I have been before. …