Should I buy these 2 dominant FTSE 100 shares for long-term growth?

This Fool is looking past current issues and hunting for long-term growth options. Could these FTSE 100 shares fit the bill?

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Two FTSE 100 shares I want to take a closer look at for my holdings are Experian (LSE: EXP) and RELX (LSE: REL).


Best-known for its credit checking operations, the business released a trading update earlier today that made for good reading, in my opinion. Earnings before tax and interest reached $928m. This was a healthy jump from the $873m at the same time last year. Plus, revenue rose by 6%, which was in line with forecasts.

Experian benefitted from new product launches in Latin America. I’m excited by this as this is an avenue that could provide some further growth opportunities. This could help boost performance and potential returns for investors.

It’s worth noting that Experian shares look a bit pricey on a price-to-earnings ratio of 39. This is substantially higher than the Footsie average of 14. Overpaying for shares is a real risk as poor performance or failing to hit forecasts could dent the share price.

Back to the positives, Experian shares would boost my passive income with a dividend yield of 1.9% on offer. However, I’m conscious dividends are never guaranteed.

To conclude, Experian isn’t a no-brainer buy for me right now but there’s lots to like. Its dominant market position, positive results and confidence moving forward – as shown by recent forecasts – as well as passive income opportunity, make it a stock I’ll be watching with keen interest. I may buy some shares if they dip to a level where I’m tempted to snap them up.


A global provider of information-based analytics and decision tools, RELX is a mammoth of a business. One of its best known products is LexisNexis, a tool used in the legal sector. In fact, I’ve used it in a previous life.

Like Experian, it possesses a dominant market position and wide geographic footprint. Plus, when you consider the digital age we live in, there’s plenty of scope for RELX shares to continue to soar and provide juicy returns with its vast offering.

On the topic of returns, RELX shares offer a dividend yield of 2%. On top of this, the business has a good track record recently of growing revenue and profits. However, I do understand that past performance is not a guarantee of the future.

One threat I’ll keep a close eye on is the artificial intelligence (AI) revolution that could threaten the status quo and dominance of informational products RELX offers. However, RELX recently announced it already incorporates AI tools within its product stack and will continue to do so as well as enhance this aspect of its offering.

Similarly to Experian once more, RELX shares have bucked the recent trend of FTSE 100 shares struggling, and have risen. Due to this, its valuation is a bit higher than I would like, on a price-to-earnings ratio of 30.

I reckon RELX shares should be able to provide steady growth and returns in the long-term. However, the shares are a tad expensive but sometimes you have to pay a premium for a quality business. I’d buy RELX shares the next time I have some spare cash — and I’d rush to buy them if they dipped a little!

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Sumayya Mansoor has no position in any of the shares mentioned. The Motley Fool UK has recommended Experian Plc and RELX. 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.

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