The Motley Fool

2 FTSE 100 growth and income stocks that could make you rich

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.

Investor demand for Burberry Group (LSE: BRBY) has marched higher again in recent weeks, and it is not difficult to see why.

The London-based luxury fashion house, which has seen its share price jump 23% during the past six months, has been supported by news that sales continue to pick up in its global marketplaces. Its latest trading numbers in July smashed past even the most optimistic of broker expectations.

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...

Burberry reported a 13% sales improvement during April-June, or 4% on a like-for-like basis, helped by a stream of well-received product launches. The business saw trade continue to improve in Asia, with Mainland China reporting “mid-teens percentage growth” and performance also picking up in Hong Kong. And in its aggregated EMEIA (Europe, Middle East, India and Africa) territory, sales rose by high single-digit percentages.

Exceptional revenues growth is not the only reason why share pickers are piling back into the company, however. Its cost control strategy to create a more efficient earnings-generating machine in the years ahead also receiving plenty of plaudits. The firm remains on course to achieve cost savings of £50m this year alone, it says.

Pricey but pristine

The thing I particularly love about Burberry is that the fashion favourite gives plenty for both growth and dividend investors to shout about.

With the extreme sales pressures in its far-flung Asian markets gradually easing, the bottom-line recovery that kicked off last year still has plenty left in the tank, at least according to City analysts. Earnings rises of 2% and 12% are forecast for the years to March 2018 and 2019, respectively.

And these perky profits predictions are expected to keep dividends growing at a splendid rate, too. The 38.9p per share forked out in 2016 is expected to rise to 40.9p in the current year, resulting in a not-too-shoddy 2.1% yield. And the 44.9p payout pencilled in for fiscal 2019 yields a meaty 2.4%.

While it may not fit the bill for value chasers – the Footsie beauty carries a forward P/E multiple of 23.9 times – I reckon the evergreen appeal of Burberry’s brand with fashion lovers across the globe makes it worthy of a premium rating.

Packaging star

Paper powerhouse Mondi (LSE: MNDI) is another of the FTSE 100’s terrific ‘all rounders’, with City analysts predicting chunky earnings and dividend growth here, too.

Earnings rises of 9% and 8% are forecast for 2017 and 2018, and these figures make the company exceptional value (it carries a forward P/E ratio of 14.1 times). Meanwhile, anticipated dividends of 64.5 and 67 euro cents per share for this year and next create large yields of 3.1% and 3.2%.

Now stock pickers, unlike over at Burberry, have fallen a little out of love with Mondi following its warning earlier this month that profits would fall “modestly below market expectations” as a result of rising costs in the third quarter.

But I believe the packaging giant’s long-term investment case remains a compelling one given the supply pressures in its key markets, and that investors should capitalise on recent price weakness. I fully expect Mondi’s share price to resume its upward march sooner rather than later.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Burberry. 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

Renowned stock-picker Mark Rogers and his 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 click below to discover how you can take advantage of this.