The world is constantly changing, and investment opportunities are always arising. Coming into 2020, few of us could have anticipated which FTSE 100 stocks would soar or plummet. It’s been a roller coaster, to say the least. But out of the carnage many great UK shares are being revealed and many that suffered still live to tell the tale. That’s why I think buy-and-hold is the best investing strategy anyone can choose. Here are some stocks I’m watching in the months ahead.
Will BT shares recover in 2021?
Telecoms group BT (LSE:BT-A) is restructuring in a bid to boost revenues. The BT share price plummeted this year and is down almost 33% year-to-date. Covid-19 obviously sent it crashing in March. But its dire state of repair, high debt, cancelled dividend and low profit, kept it there. Competition and regulation have suppressed company profits in recent years, weighing heavily on the BT share price. It is down over 72% in the past five years.
BT must cough up a fair amount to remove all traces of Huawei from its infrastructure and will need to spend more to upgrade in alignment with technological advancements. Nevertheless, it should be due help from the British government in achieving this and I don’t think it will go bust. Personally, I think there are better UK shares out there and BT will take a while to recover. I also think volatility will continue for the BT share price throughout 2021.
Is Standard Life Aberdeen a good buy?
Standard Life Aberdeen (LSE:SLA) is a FTSE 100 investment company popular with income investors. Its share price remains down nearly 16% year-to-date but has been recovering on the back of the November rally. Standard Life shares have been extremely volatile this year, but its generous dividend yield has kept investors in the game.
It has a yield of 7.6% today and price-to-earnings ratio (P/E) is 25, while earnings per share are 11p. There are concerns the company may cut the dividend in 2021 to strengthen its balance sheet. But not everyone shares this view. The company is already invested in its share buyback program, which it intends to complete this year. JP Morgan also indicated it thinks Standard Life might look to acquisitions to continue to grow through 2021. It’s not a cheap UK share, but its dividend yield is very tempting. I’d consider buying Standard Life shares next year.
Are Aviva shares a good FTSE 100 buy now?
Aviva is a FTSE 100 insurance company. It sold its Italian life joint venture stake for €400m in late November. This came after a sale of its Aviva Singapore arm in September. Both brought the value of the company up and helps streamline the business.
The Aviva brand is very well known and under new leadership determined to benefit shareholders. It looks to be embarking on a new chapter. With its very attractive dividend yield of nearly 7% I think it looks a good addition to a long-term investment portfolio. Its P/E remains very low around five, so it’s also a cheap UK share.
Apart from these UK shares, I like the look of Vodafone’s foray into 5G. And its dividend yield of over 6% is also tempting. I think Vodafone is another stock to watch as it’s had a dismal few years but may return to growth in 2021.
