3 Shares I Would Buy For My ISA Today

Consider Barclays PLC (LON:BARC), Rolls-Royce Holding PLC (LON:RR) and Royal Dutch Shell plc (LON:RDSB) if you’re looking to top-up your stocks and shares ISA allowance.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Your ISA allowance will expire within hours. If you’re looking to invest tax-efficiently in a stocks and shares ISA, here are three FTSE 100 companies I would buy today.


Barclays (LSE: BARC) (NYSE: BCS.US) is 25% cheaper than it was at the start of this year. If you’ve been looking for a buying opportunity, this is probably it. Barclays hasn’t been this cheap for more than 18 months.

barclaysThere is a good reason it has fallen. Investors were aggravated by the recent 32% drop in underlying profits to £5.2 billion, while activists were insulted by chief executive Antony Jenkins’ decision to hike the investment banker bonus pot by 10% to £2.4 billion regardless, while announcing plans to lay off 12,000 lower paid staff.

With earnings per share expected to grow a whopping 67% this year, Barclays is forecast to trade at a tempting 8.8 times earnings by December. The yield is rising too. The share price is up 6% in the week since I tipped it. You don’t want to hang around much longer, or this opportunity could evaporate.

Rolls-Royce Holdings

After 10 years of smooth returns, Rolls-Royce Holdings (LSE: RR) (NASDAQOTH: RYCEY.US) recently issued its first profits warning in 10 years. Investors were shocked to discover there would be no growth in sales or profits this year, and the stock crashed 14% on the day. The City hates nasty surprises, and chief executive John Rishton was condemned for his failure to issue due warning.

Rolls-RoyceRolls-Royce has since slipped into gear, cheering investors by winning a contract with All Nippon Airways (ANA) to supply Trent 1,000 engines to power 25 Boeing 787 Dreamliner aircraft. It followed this by securing a $50 million one-year contract to support the US Marines Corps fleet of KC-130J air-to-air refuelling tankers. 

I suspect recent problems were just a bump in the road, and Rolls-Royce will continue to power ahead. Over the last five years, it has returned 230%. This could be a rare chance to buy a great British company at a reduced price, but only if you’re fast. The share price is already up 6% in the last month, recovering almost half its lost gains.

Royal Dutch Shell

Investors in Royal Dutch Shell (LSE: RDSB) (NYSE: RDS-B.US) have grown accustomed to false starts, but I still have faith that it can reverse its recent underperformance. 

royal dutch shellNew chief executive Ben van Beurden has been showing his mettle with his plans to cut investment to boost financial performance and capital efficiency, and has been rewarded by a string of broker upgrades and outperform ratings. 

The share price is also revving up, rising 10% in the last six months. Yet the valuation remains affordable, trading at a forecast 11.8 times earnings for December. Better still, there’s the yield, currently 4.6%. That is three times as much as you can get on a best-buy cash ISA.

Royal Dutch Shell is expected to post a 30% rise in earnings per share this calendar year. Fill up your tank now, before its share price accelerates further.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Harvey owns shares in Royal Dutch Shell. He doesn't own any other company mentioned in this article.

More on Investing Articles

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Taylor Wimpey shares yield a fabulous 6.41%, but is the dividend safe?

Harvey Jones has enjoyed plenty of growth and income after buying Taylor Wimpey shares last year. But is today's high…

Read more »

Yellow number one sitting on blue background
Investing Articles

1 FTSE lithium stock I think could be ready to rocket

Jon Smith explains why the lithium price could be due a rally, and why shares of one related FTSE stock…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
US Stock

This growth stock that Warren Buffett owns just hit 52-week lows. Should I buy?

Jon Smith flags up a high-profile US stock that the great Warren Buffett bought back in 2020 but which has…

Read more »

White female supervisor working at an oil rig
Investing Articles

Could the UK general election be bad news for this FTSE 250 energy producer?

The country is due to vote in the general election on 4 July. Our writer looks at the possible implications…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

Should we buy cheap FTSE 100 shares now, before it’s too late?

The FTSE 100 is up 5% so far in 2024 and hit an all-time high in May. That means the…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

Here’s why I think the Lloyds share price could hit a 5-year high in 2024

It's up 13.5% so far in 2024, and reaching new highs. But where might the Lloyds Bank share price go…

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

If I’d put £15k into this FTSE 250 stock in 2008, I’d have over £1.26m today

This multi-billion-pound business has created plenty of millionaires over the last 16 years, but can it repeat this performance?

Read more »

Playful senior couple in aprons dancing and smiling while preparing healthy dinner at home
Investing Articles

3 dividend shares I’ve bought for the next decade!

I think these UK dividend shares can amplify my long-term passive income, and could even be on track to becoming…

Read more »