2 top FTSE 100 shares to consider for a Stocks and Shares ISA in 2025

Our writer picks a pair of Footsie shares from his Stocks and Shares ISA that he reckons look attractive heading into the New Year.

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Investors today are almost spoilt with the amount of options available for a Stocks and Shares ISA. There are thousands of different companies, investment trusts, and exchange-traded funds to sift through.

Where to start? Here are two FTSE 100 stocks from my ISA that I think are worthy of consideration in 2025.

A ready-made portfolio of growth stocks

The first is Scottish Mortgage Investment Trust (LSE: SMT). This FTSE 100 fund aims to own the world’s best growth firms over the long term. Its holds about 100 stocks from both public and private markets.

Should you invest £1,000 in Aviva right now?

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Created with Highcharts 11.4.3Scottish Mortgage Investment Trust Plc PriceZoom1M3M6MYTD1Y5Y10YALL8 Dec 20198 Dec 2024Zoom ▾Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '242020202020212021202220222023202320242024www.fool.co.uk

The share price has risen 20% year to date and 307% over 10 years. However, it remains 36% lower than a peak reached in November 2021.

Here are the top 10 holdings, as of 31 October 2024.

CompanyPortfolio weighting (%)
MercadoLibre6.4
Amazon6.0
Space Exploration Technologies (SpaceX)4.8
Nvidia4.4
Meituan4.2
Tesla4.1
Meta Platforms3.8
Ferrari3.6
PDD Holdings3.3
ASML3.2

Some on this list are the trust’s best-ever investments, made many moons ago. These include Amazon (first invested in 2005), Tesla (invested in 2013), and chip equipment maker ASML (first bought in 1996).

Scottish Mortgage invested £64m in Nvidia back in 2016 and recently sold some shares for a profit of £1.2bn. However, it still holds a £660m stake. This shows how powerful buy-and-hold investing can be!

Looking forward though, the trust will need its next generation of potential big winners to drive future returns. This isn’t automatically guaranteed, though.

For instance, it reportedly lost more than £300m after the recent collapse of Swedish electric vehicle battery maker Northvolt. Not so long ago, this was one of its largest private holdings.

In the six months to September, Northvolt helped drag down the value of the trust’s unlisted investments by 11.3%. Not great.

On a more positive note, SpaceX’s valuation has reportedly soared to $350bn, with the rocket pioneer increasingly becoming the gateway to space for the Western world.

Meanwhile, TikTok parent ByteDance (another large holding) is expected to report around $150bn in revenue for 2024. Not bad for a 12-year-old company!

Scottish Mortgage offers a way for investors to gain exposure to game-changing private companies like SpaceX and TikTok.

High-yield passive income

The second stock I think’s worth considering is Legal & General (LSE: LGEN). This is the blue-chip insurance and asset management firm that’s been around since Queen Victoria was on the throne.

Created with Highcharts 11.4.3Legal & General Group Plc PriceZoom1M3M6MYTD1Y5Y10YALL8 Dec 20193 Apr 2025Zoom ▾Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25202020202021202120222022202320232024202420252025www.fool.co.uk

The big attraction here is the mouthwatering 9.2% forward dividend yield. That towers above the FTSE 100 average of around 3.5%.

In recent days, the firm said it’s on track to achieve mid-single-digit growth in operating profit this year. And it’s confident of delivering 6%-9% annual growth in core operating earnings per share through to FY27.

Legal & General has a fantastic record of increasing its dividend. However, no dividend is assured forever, and the company invests in various assets, including stocks, bonds, and property, to meet its long-term obligations. These are subject to market fluctuations, which can impact asset values.

Still, the company has a solid balance sheet and large customer base. The monster 9%+ yield appears sustainable, while it plans to return more capital to shareholders in future, including via share buybacks.

With a cheap valuation and ultra-high dividend yield, I think this is an excellent stock to consider for passive income.

Like buying £1 for 31p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Ben McPoland has positions in Ferrari, Legal & General Group Plc, MercadoLibre, and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended ASML, Amazon, MercadoLibre, Meta Platforms, Nvidia, and Tesla. 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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