2 FTSE 100 stocks I’d buy with £1,000 today

Bilaal Mohamed highlights two reliable growth picks from the FTSE 100 (INDEXFTSE:UKX).

| 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.

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.

It goes without saying that in order to make life-changing sums of money on the stock market you need to have a huge amount of starting capital to invest in the first place, right? WRONG.


You’ll be surprised how many investors have retired as multi-millionaires despite starting out with very limited funds. There are so many examples of London-listed companies whose share prices have multiplied by hundreds and sometimes even thousands of percentage points over the last few years, making the idea of achieving financial independence via the stock market more realistic than you might think.

Granted, many of these highly successful growth stocks started out as more speculative small-caps, and those types of investments are perhaps understandably not everyone’s cup of tea. Many of you may be new to investing or simply risk-averse, in which case it’s probably best to put your first £1,000 of investing capital to work in rock-solid blue-chips that have a track record of delivering stable returns with comparatively low levels of risk.

Life-changing returns

That’s not to say that our FTSE 100-listed companies can’t deliver life-changing returns for their investors, indeed far from it. Packaging giant DS Smith (LSE: SMDS) for example has provided a return of no less than 1,300% for its shareholders since 2009, and that’s without even including dividends.

The £5bn business is now a leading provider of corrugated packaging in Europe, and a specialist in plastic packaging worldwide. In order to support its corrugated packaging operations, the group also includes a recycling business that collects used paper and corrugated cardboard, from which its paper manufacturing facilities make the recycled paper used in corrugated packaging. And recycling is a business that’s likely to grow in the future.

Explosion in online shopping

The London-based group boasts an excellent track record of sales and earnings growth, and with the explosion in online shopping helping to further increase demand for cardboard packaging, I think the only way is up for this boring-yet-reliable international business.

DS Smith trades on a forecast price/earnings ratio of 14 for the year to April, and offers a progressive dividend, which at today’s prices yields a very respectable 3.5%.


Another spectacularly boring FTSE 100 business that’s delivered significant shareholder returns in recent years is Relx (LSE: REL). The Anglo-Dutch group formerly known as Reed Elsevier is a global provider of information and analytics for professional and business customers across a wide range of industries.

After undergoing a huge restructuring programme the group has largely moved away from its legacy of trade journals to becoming a more digitally-focused provider of professional information services. This is likely to bode well for the future with the increasing demand for data and analytical tools helping to offset the global decline in print media.

Relx’s share price has pulled back sharply from the record highs of 1,782p achieved in November last year, and this should provide new investors with a reasonable entry point at a not-too-demanding forward earnings multiple of 17.

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.

Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended DS Smith. 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.

More on Investing Articles

Blue NIO sports car in Oslo showroom
Investing Articles

NIO stock is down 90%. Will it recover?

NIO stock has fallen significantly from its 2021 all-time high. But could now be a chance for this Fool to…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

These 2 UK shares could help me reach £1,000,000 in my Stocks and Shares ISA

A FTSE 100 compounding machine and a FTSE 250 value stock are the UK shares Stephen Wright thinks could help…

Read more »

Middle-aged Caucasian woman deep in thought while looking out of the window
Investing Articles

If I’d invested £1,000 in Lloyds shares at the start of the year, here’s what I’d have now

The stock market is unmoved, but Stephen Wright thinks last year’s record profits might give Lloyds shares a long-term boost.

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

I’ll snap up shares in this growth stock in March if others don’t get there first

This Fool says shares in this growth stock are stable, full of profit, and might be undervalued. But there are…

Read more »

Rainbow foil balloon of the number two on pink background
Investing Articles

My 2 top energy investment trust picks for a passive income

I'm aiming to buy more of these investment trusts for a passive income and the reasonably stable energy sector returns…

Read more »

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

5.5% dividend yield! Shares like these could be great for my retirement

Oliver Rodzianko thinks this company with a stellar dividend yield could be very useful when looking for income from his…

Read more »

Investing Articles

Should I buy this FTSE 250 stock as it soars back to the FTSE 100?

This FTSE 250 stock has rallied following its pandemic woes. This Fool thinks now could be a good time to…

Read more »

Businessman use electronic pen writing rising colorful graph from 2023 to 2024 year of business planning and stock investment growth concept.
Investing Articles

How I’d aim to transform an empty Stocks & Shares ISA into £1m of wealth!

There's never a better time to start investing in a Stocks and Shares ISA than today. Here's how I'd aim…

Read more »