3 FTSE 100 shares to buy now

The FTSE 100 has recovered in recent months. Here are three stocks from the index I would add to my portfolio today.

| 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.

man in shirt using computer and smiling while working in the office

Image source: Getty Images

The last year has been a difficult one for the UK stock market. Covid-19 restrictions have hampered profits and share price growth for many.

After several lockdowns, the UK economy shrunk a record 9.9% during 2020, and many might think that opportunity in the stock market is limited.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

It’s not all doom and gloom, however. The FTSE 100’s rebound since the autumn has coincided with the development of a number of vaccines, and much will depend on how the UK and other countries are able to implement their vaccine programmes.

There is plenty of optimism around, particularly in the UK where more than 14m people have received their first doses of the jab.

With that in mind, here are three shares I would buy now for my portfolio or Stocks and Shares ISA.

Barratt Developments

Housebuilder Barratt Developments (LSE:BDEV) is one UK share I see a lot of upside in right now.

After the initial lockdown in March of last year, further lockdowns and restrictions have loosened for the construction sector and Barratt said they completed 9% more homes in the second half of the year than they did in the corresponding period of 2019.

The company said this was a record number of completions, and helped it to see a 1.7% rise in profits during the same time. The housing market seems resolute with demand remaining strong.

However, the housing market can be subject to booms and busts. Some will say that recent strong performance from the housebuilders is the onset of a bubble which will eventually burst.

With the stamp duty holiday and Help To Buy scheme on the way out, that poses a further risk that demand might dry up. I’m still adding Barratt to my list of shares to buy now though.


Telecommunications provider Vodafone (LSE:VOD) is another FTSE 100 share I like the look of. 

Vodafone has a price-to-earnings ratio (P/E) of 27, which a lot of investors may consider to be too expensive. However, the company has one of the highest dividend yields in the index, standing at 6% based on its current share price of 130p.

Vodafone recently returned to profit growth after a strong performance in its biggest market, Germany. I must point out that sales had suffered for several quarters before that so it will take a few more quarters to see if that growth is sustainable.

I see enough value in the dividend at this stage, however, to add it to my buy list.

St James’s Place

Wealth management business St James’s Place (LSE:STJ) is a business many may not hear about on a regular basis. But the company has a record of steady share price growth stretching back years. 

Its shares have recovered well after an initial fall due to Covid-19, and have gained more than 25% in the last two years.

The fund ended 2020 with record assets under management after investors placed more than £4bn with the wealth manager in the final quarter of the year.

The shares do seem expensive at 23 times P/E, and St James’s Place froze its dividend last year, so there is risk involved. However, I’m still backing the company’s strong track record as one of my best shares to buy now.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

conorcoyle has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Here’s a FTSE 250 stock to buy to benefit from the construction boom!

Jabran Khan details a FTSE 250 stock that could be primed to benefit from the infrastructure and construction boom.

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Is the Royal Mail share price a buying opportunity?

With a 6% dividend yield and a price-to-earnings ratio of 3, is the Royal Mail share price in buying territory?…

Read more »

Scene depicting the City of London, home of the FTSE 100
Investing Articles

3 FTSE 100 shares! Should I buy them?

I'm searching for the best FTSE 100 stocks to buy following recent market volatility. Are these blue-chip UK shares too…

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Should I buy one of the cheapest shares on the FTSE 100 index?

This Fool explores one of the cheapest stocks on the FTSE 100 index by share price and decides if he…

Read more »

Asian Indian male white collar worker on wheelchair having video conference with his business partners
Investing Articles

With trading suspended, where could the Eurasia Mining (LON:EUA) share price go next?

This morning, the EUA share price was suspended pending an announcement - so could improving sales send the share price…

Read more »

Hand holding pound notes
Investing Articles

Are the FTSE 100’s top income stocks a bargain?

The FTSE 100 is renowned for its value and dividend stocks. So, are the index's top income stocks worth a…

Read more »

Compass pointing towards 'best price'
Investing Articles

Scottish Mortgage shares have slumped 40%. Time to buy now?

Scottish Mortgage Investment Trust (LON: SMT) shares have rewarded shareholders well in recent years. I'm thinking of buying now they're…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

3 recession stocks I’d buy in a hurry

With the economic outlook getting worse, our writer highlights a trio of recession stocks he would consider buying for his…

Read more »