These are 2 of my best shares to buy for a winning portfolio!

Looking for shares to buy for her holdings, our writer reckons these two no-brainer industry giants could be savvy additions to her holdings.

| 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.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I’m sure everyone has different ideas as to the best shares to buy for their ideal pot of holdings.

For me personally, B&M European Value (LSE: BME) and National Grid (LSE: NG.) are two picks I reckon could help me build wealth.

Here’s why I’d love to buy them when I next have some free funds.

Should you invest £1,000 in JD Sports right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if JD Sports made the list?

See the 6 stocks

Discount consumer goods

The retail value segment has exploded in recent years, and B&M has been at the forefront of this. The FTSE 100 incumbent has experienced exceptional growth across performance, earnings, and presence. For context, sales have increased by nearly 170% over the past eight years!

In recent times, a cost-of-living crisis brought on by increasing inflation and higher interest rates has helped the business soar to new heights. This is because consumers are looking for more bang for their buck. B&M has taken advantage by boosting its presence, with the acquisition of the now defunct Wilko sites, to provide an example of how the business has capitalised.

Interestingly, B&M shares dropped recently, due to what I believe is an overreaction. June’s full-year report confirmed operating profit rose by 10.9% compared to the previous year. Plus, like-for-like revenues across its UK core business rose by nearly 4%. However, the business didn’t divulge much information regarding next year’s guidance.

B&M continues to aggressively expand, and is targeting 1,200 stores, compared to its current estate of 755 stores. However, the threat of competition from supermarkets working hard to maximise their own essential ranges to target the wallet-conscious consumer could have an impact on earnings and returns.

Diving into fundamentals, B&M shares dropping have offered a good entry point at present, with the shares trading on a price-to-earnings ratio of just 12. Plus, a dividend yield of 3.2% could grow in the future. However, I do understand that dividends are never guaranteed.

Keeping the lights on

National Grid is in charge of making sure we all have the power that we need.

The draw of buying National Grid shares is that it’s the only game in town, as there are no competitors. This ensures earnings remain pretty stable. Plus, the stock possesses defensive traits as everyone needs power despite the economic outlook.

It’s worth noting that National Grid has long been a Dividend Aristocrat. Its current dividend yield stands at just under 6%. However, a recent example of dividends never being guaranteed hurt the shares. The firm said it needed to cut the dividend to balance the books, as well as invest in infrastructure. Plus, it needs to prepare for green energy alternatives. This is a risk moving forward too. However, I reckon once the business has invested the necessary funds, the rewards will outweigh the blip of cutting dividends.

The good news is National Grid shares dropping means they’re cheaper to buy for me. They trade on a price-to-earnings ratio of just 10.

As with all investments, there are ups and downs. I reckon the dividend being slashed is a temporary, short-term measure. In the longer term, I think the rewards yielded from this strategy could help build wealth.

Should you invest £1,000 in JD Sports right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if JD Sports made the list?

See the 6 stocks

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 B&M European Value. 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

Investing Articles

The Rolls-Royce share price has fallen! Is this the moment investors have been waiting for?

Even the Rolls-Royce share price can't escape current stock market volatility, falling slightly over the last week. Should investors consider…

Read more »

Modern suburban family houses with car on driveway
Investing Articles

Down 59% from its 12-month highs, is this FTSE 250 stock too cheap to ignore?

Shares in FTSE 250 housebuilder Vistry are almost certainly too cheap to ignore. But are they discounted enough to offset…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

As the S&P 500 struggles to recover, here’s what Warren Buffett’s doing

The S&P 500 is fighting to regain its February highs amid ongoing trade tariff uncertainty. Our writer looks to the…

Read more »

Investing Articles

When will Lloyds shares hit £1?

Lloyds shares have surged over the past 12 months, but where will they go next? Dr James Fox thinks there’s…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Stock-market crash: the meltdown of the Magnificent 7

Just before Christmas, these Magnificent Seven stocks were riding high. But after the worst quarter for US stocks since autumn…

Read more »

Investing Articles

Wow! IAG shares are undervalued by 47%, according to analysts

IAG shares have surged over the past 18 months, but analysts are pointing to more growth. Dr James Fox takes…

Read more »

Investing Articles

2 cheap FTSE 100 and FTSE 250 shares to consider for an ISA before 5 April!

These FTSE 100 and FTSE 250 shares are on sale today! Here's why long-term Stocks and Shares ISA investors should…

Read more »

Investing Articles

How I’m building a new second income for 2035

Millions of us invest for a second income. Here are the steps Dr James Fox is taking in order to…

Read more »