5 top British stocks I’d buy

British stocks sometimes have a reputation for not growing as fast as their US peers, but here are five very strong UK-listed companies.

| 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.

Graph Falling Down in Front Of United Kingdom Flag

Image source: Getty Images

As the markets struggle and investors fret about inflation, Chinese economic growth and the impact of the hasty and disorganised withdrawal from Afghanistan, there are, in my opinion at least, opportunities to pick up top British stocks.

Top FTSE 100 British stocks

From the UK’s elite index – the FTSE 100 – I’d buy Legal & General (LSE: LGEN) and Aviva (LSE: AV). Stable business models and decent value share prices underpin the buy case for both of these shares, for me. Both also seem to be doing a lot right.

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!

In the case of Legal & General, there’s the high dividend yield and the fact the dividend was maintained through the pandemic. Unlike at other financial companies, including rival Aviva.

It also has an incredible passive investing business and has built up a large annuities business as well. To me, it seems very well run and the management team is experienced and very stable. The CEO has been in the role since 2012.

Aviva has until recently been more turbulent. The CEO role has been in several hands in quick succession. But under Amanda Blanc, the business seems to be doing much better. It has become leaner, which should make it more efficient and easier to manage, and the dividend is making a comeback.

I already own shares in Legal & General and would be happy to buy more when the price dips to hold for the long term. Share buybacks and the possibility of special dividends at Aviva also mean I’m considering adding some of its shares to my portfolio.

The risk with Legal & General is whether the dividend can keep growing. With Aviva, it is can the insurer grow sufficiently now it is concentrating its business just on the UK, Ireland and Canada? I think it’s too early to tell just yet. 

Best of the rest

Outside of the FTSE 100, there are plenty of smaller businesses I also like. There are three in particular: Property Franchise Group, TinyBuild and Cerillion.

The former is similar to Belvoir, providing letting management, new-house-builds, as well as property-related financial services. It has a £100m market capitalisation and I think could grow for years to come, except if there’s a serious and prolonged UK residential property correction. It’s likely to be added to my portfolio in the next month or two. 

TinyBuild is a newly-listed gaming company. The shares have done OK since listing in March. Gaming remains a high-growth industry. I expect, therefore, that the shares can do well. The CEO holds about 38% of the shares, so is well incentivised to grow the share price and manage the company for the long term.

The possible downside is that like other gaming companies, the shares are expensive on a forward P/E of 48. Any bad news could see the stock hit hard. But the CEO stake makes me tempted to buy the shares.

Lastly and just a quick word about customer relationship management software group Cerillion. It’s a high-return, high-margin business and unusually for a tech stock, it pays a dividend. Again though, the shares aren’t cheap and for that reason, while I think it’s a great company, I won’t be buying the shares for now.

Apart from these five shares The Motley Fool has also identified a share which should do well if inflation persists.

Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices

Make no mistake… inflation is coming.

Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing.

Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question.

That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation…

…because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not!

Best of all, we’re giving this report away completely FREE today!

Simply click here, enter your email address, and we’ll send it to you right away.

Andy Ross owns shares in Legal & General. 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

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

This cheap share fell 30% last week. I’d buy now

This huge US corporation saw its shares crash by 30% last week. But I'd buy this surprisingly cheap share now…

Read more »

Various denominations of notes in a pile
Investing Articles

These 7 shares produce passive income of 7% to 11% a year!

Passive income is extra money I make without working. By buying these seven shares, I could earn 8.9% a year…

Read more »

A person holding onto a fan of twenty pound notes
Investing Articles

6.6%+ dividend yields! 2 FTSE 100 dividend stocks to buy

Finding the best dividend stocks to buy requires extra care today as soaring inflation takes a bite out of shareholder…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

At 85p, are Rolls-Royce shares a slam-dunk buy?

The Rolls-Royce share price is in penny stock territory. Roland Head explains why he thinks this FTSE 100 stalwart looks…

Read more »

Business development to success and FTSE 100 250 350 growth concept.
Investing Articles

‘Big Short’ investor Michael Burry is buying this quality growth stock! Should I?

In the first quarter, Michael Burry bought more of this growth stock. Is this a hint that I should also…

Read more »

A beach at sunset where there is an inscription on the sand "Breathe Deeeply".
Investing Articles

Stock market crash: here’s why falling prices is good news

Over in the US, a stock market crash is battering high-priced stocks. But I see falling shares as an opportunity…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

These 5 FTSE 100 shares crashed in 2022. I’d buy 1 today

Although the FTSE 100 index is flat in 2022, some Footsie shares have crashed hard this year. But I see…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

How investors can boost their passive income when the FTSE is falling

Stock markets are plagued with fears right now. Here's why I firmly believe those fears improve our passive income prospects.

Read more »