3 FTSE 100 stocks I’d buy with £20,000 now for the next 10 years

These FTSE 100 stocks are all part of Manika Premsingh’s portfolio, each bringing with them their unique long-term growth story. 

| 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.

The new tax year will soon be upon us. It is a good time to start thinking of making a Stocks and Shares ISA allocation of £20,000 now, in my view. There are plenty of FTSE 100 stocks to choose from. This is particularly so right now, when the stock markets are gaining ground. This also creates a challenge though. How do I choose between long-term investments and those that are likely to do well when investors are bullish? Here are three investments that I intend to hold for the next 10 years at least (in alphabetical order). 

#1. AstraZeneca: on the up and up

The pharmaceuticals biggie needs no introduction, especially not after Covid-19. I first bought AstraZeneca a few years ago, because it just looked like it was full of potential. The Anglo-Swedish company provides critical cancer treatments and is also expanding into new areas. Its recent acquisition of Alexion, which focuses on rare diseases is one such. The stock has a price-to-earnings (P/E) ratio of a huge 90 times, which indicates that it might be in for a correction. We will know for sure when the company releases full-year numbers in February. Over the next 10 years though, I expect it to rise more than fall, going by its profile and robust financial performance. 

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!

#2. Royal Mail: FTSE 100 turnaround star

Not long ago, Royal Mail had tumbled out of the FTSE 100 index as friction between the company’s management and its strong trade union continued endlessly. Things started turning around for the stock with a change of guard. And the Covid-19 crisis created unexpectedly high demand for its parcel services. By last year its share price rose enough to make a return to the FTSE 100 again. The pandemic might be close to its end, but e-commerce is firmly established now as an industry of the future. And Royal Mail plays a critical role in that. The company has warned of a profit hit as it axed 700 jobs recently, but in the scheme of things, I would not base my investing decisions in the stock on this alone. I have bought the stock for the next 10 years.

#3. SSE: it’s all about green energy

This one has long been a no-brainer for me. Over the long term, the world will only move towards clean and green energy sources. The FTSE 100 utility SSE is already there. Its financials are robust and it also has an above-average dividend yield of 5.3%. FTSE 100 has an average yield of 3.4%. It also beats inflation, which is at an awfully high 5%+ annual rate right now. And considering that it is a utility, dividends are unlikely to be axed even in otherwise bad times. Its stock price has been weak in the past few months, which is a downer. But I doubt if this will matter over the next 10 years, that is why I bought it on a dip. 

Our 5 Top Shares for the New “Green Industrial Revolution"

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special "Green Industrial Revolution" presentation now

Manika Premsingh owns AstraZeneca, Royal Mail, and SSE. 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

Saucepan on a gas hob
Investing Articles

The Centrica share price is up 65%. Here’s why I sold

The Centrica share price has soared nearly two-thirds in a year. So why has our writer dumped his shareholding?

Read more »

Modern suburban family houses with car on driveway
Investing Articles

As the Howden Joinery share price falls, I’d buy and hold

The Howden Joinery share price has been falling. But Christopher Ruane likes its business model and is weighing adding it…

Read more »

Hand holding pound notes
Investing Articles

The tumbling Persimmon share price means an 11.3% yield! Should I buy?

A falling Persimmon share price has pushed the dividend yield into double-digits. Our writer considers his next move.

Read more »

Innovation and new ideas lightbulb concept 2022
Investing Articles

As stock markets crash, I’d buy these 4 FTSE 100 fallers!

After US stock markets tumbled on Wednesday, the FTSE 100 duly followed suit on Thursday. But falling share prices revealed…

Read more »

Compass pointing towards 'best price'
Investing Articles

A 7.6% dividend yield! Is the Aviva share price a bargain not to be missed?

The Aviva share price has recovered well since the 2020 stock market crash. As one of the top FTSE 100…

Read more »

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

Stock market crash: I’m hunting giants for future gains!

In this latest stock market crash, selling pressure is slamming share prices. But some great company stocks are being crushed,…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

With a P/E of just 8, this social media newcomer is a cheap stock pick!

This social media firm looks like a cheap stock pick for my portfolio. For a growing tech firm, it certainly…

Read more »

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

Warren Buffett has been selling dividend stocks. Should I be doing the same?

As Warren Buffett sells out of Abbvie, Bristol-Myers Squibb, and Verizon, our writer wonders whether he ought to be looking…

Read more »