My Foolish colleague Edward Sheldon recently pointed out that this Friday, 5 April, is the last day you can add funds to your Stocks and Shares ISA as part of your £20,000 2018/19 allowance.
But don’t panic. On 6 April, your allowance resets and you can stash another £20k in your ISA, or as much as you want up to that limit for the 2019/20 financial year.
Here are five FTSE 100 shares that I’d be keen to buy if I had spare funds, but Do Your Own Research (DYOR), and don’t rely on my short heads-up article for making investment decisions.
5 eminent candidates for investment
Reckitt Benckiser Group manufactures and markets fast-moving health, hygiene and home products. It’s a classic ‘defensive’ business with generally reliable inflows of cash that can support a progressive dividend policy. Over five years, the dividend has risen 25% and the share price is up around 38%.
Smith & Nephew is a medical technology company making and marketing stuff such as joint implants, advanced wound care products and many other similar items. The business has those characteristics I love in an investment, such as steady incoming cash flow due to constant demand that is essentially non-cyclical – ideal for supporting a growing income for shareholders from the dividend. The share price is around 78% higher than it was five years ago and the dividend has expanded by 46%.
Diageo is a ‘sin’ stock, owning many premium alcoholic beverage brands, such as Captain Morgan, Smirnoff, Baileys, Guinness and many others – the very last things to be struck from many budgets in even the toughest of economic times! Hence the firm’s reliable incoming cash flow, which lends support to the growing dividend. Over five years, the share price has moved almost 70% higher and the dividend has swollen by 38%.
Unilever is another fast-moving consumer goods (FMCG) company active in the personal care, homecare, and foods spaces with brands such as Ben & Jerry’s, Hellman’s, Comfort, Dove and many others. Over five years, the dividend is up 46% and the share price is around 70% higher.
The Sage Group provides integrated accounting, payroll and payments solutions. Once businesses adopt the firm’s software, products and services, switching to another supplier or system involves disruption and expense, so Sage’s cash inflow tends to be predictable and steady – ideal for supporting a growing dividend. The share price is around 80% higher over five years and the dividend is up 46% or so.
Where next?
What will the next five years bring for these companies and their shareholders? My guess is that the news in 2024 will be good. Of course, you can buy the shares of a decent underlying company and still end up with a poor investing outcome if valuations are too high, but I think these five are well worth me keeping a close eye on with a view to buying shares on dips and down-days
