The Motley Fool

2 FTSE 100 growth giants that could help you retire rich

Supported by the proposed merger of Aberdeen Asset Management (LSE: ADN), I reckon the long-term earnings outlook at Standard Life (LSE: SL) is worthy of serious attention from savvy investors.

The financial goliath sources around half of profits from the life insurance sector, but is looking increasingly towards the asset management industry to deliver future growth.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Some have raised eyebrows at its decision to link with Aberdeen, with severe economic turbulence in developing markets more recently prompting investors to pull their cash out of the Scottish business en masse. But I reckon Standard Life’s merger  could pay off as, over a longer time horizon, the combination of booming population levels and rising personal wealth levels makes Asia an attractive destination for forward-thinking investors.

Besides, Standard Life and Aberdeen have identified £200m worth of cost synergies (to be achieved by 2020) which should give earnings another encouraging kick.

Plenty of upside

And in the meantime, City analysts expect Standard Life to put to bed the extreme earnings volatility of recent years.

For 2017 an expected 57% earnings charge is predicted, building on the 39% rise enjoyed last year. And the insurer is expected to keep the momentum up with a 7% bottom-line uptick in 2018.

Current Square Mile forecasts make Standard Life exceptional value for money too, a forward P/E ratio of 12.3 times falling comfortably below the FTSE 100 forward average of 15 times.

But it is Standard Life’s dividend profile that should really attract investors, in my opinion. A predicted 21.4p per share dividend for this year yields a staggering 5.9%, while an anticipated 23p reward for 2018 drives the yield to 6.4%.

With the Aberdeen merger set to boost Standard Life’s product range considerably, and with it future earnings growth, I expect the enlarged group to deliver stunning investor returns in the years ahead.

A wise investment

I also believe Hargreaves Lansdown (LSE: HL) is a hot growth bet as savers seek to protect themselves from rising inflation.

You see, with the increasing cost of living steadily eroding the value of cash, those stashing away for a rainy day are increasingly seeking alternatives to the rock-bottom interest rates offered on bog-standard savings accounts. And Hargreaves Lansdown’s broad range of services puts it at the front of the queue for those looking to invest wisely.

So just like Standard Life, Hargreaves Lansdown is also expected to enjoy handsome earnings growth during the medium-term at least, City analysts forecasting expansion of 15% and 13% in 2017 and 2018 respectively.

And I believe the investment manager is a wise stock selection despite an elevated forward P/E multiple of 31.5 times. Over the long term I believe Hargreaves Lansdown should prove a profitable growth share returns as private investor activity keeps on surging (assets under administration stood at a record $70bn as of December), helped by the structural opportunities created by an ageing populace.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Aberdeen Asset Management and Hargreaves Lansdown. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.