The Motley Fool

Why I think these 2 FTSE 100 stocks could help you become an ISA millionaire

Image source: Getty Images

While the prospect of becoming an ISA millionaire may seem unrealistic to some investors, the reality is that a number of FTSE 100 companies could produce high returns in the long run that make the task increasingly achievable.

Certainly, there is a risk of paper losses in the short term. That’s especially the case at the present time, with the world economy currently facing an uncertain period due to the prospect of a global trade war.

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...

However, with the index appearing to offer a wide margin of safety, now could be the right time to buy these two large-cap stocks. Both of them could deliver high returns that, when purchased within a diversified portfolio, may increase your chances of making a million.

Reckitt Benckiser

The growth potential for consumer goods companies such as Reckitt Benckiser (LSE: RB) appears to be exceptionally high. The company has been able to position itself within a number of emerging markets in order to capitalise on the rising wages that are leading to increasing demand for a wide range of consumer products. This may produce a tailwind for the business over the coming years and lead to a robust and fast-growing bottom line.

Since Reckitt Benckiser has a wide range of brands within its portfolio, its overall risks are reduced to some degree. Meanwhile, a recent restructuring seems to have improved the company’s efficiency, and may allow it to maximise its profit potential.

Although a change in CEO planned for September could lead to a refreshed strategy over the medium term, the company has a strong position in a variety of markets that may catalyse its stock price over the long run.

Rolls-Royce

Also offering high long-term growth potential is aerospace and defence business Rolls-Royce (LSE: RR). It is currently putting in place a revised strategy that is expected to improve efficiency and productivity through creating a leaner business that is more able to react to changes in demand across its key markets. As part of this, it has rationalised its asset base, while also reducing headcount.

Over the medium term, the company is expected to deliver improving free cash flow that may allow it to reinvest in its growth opportunities. With rising demand for defence products and services, as well as an ever-increasing number of aircraft in our skies, the prospects for the wider aerospace and defence industry could be bright.

Certainly, the recent ramp-up in the global trade war could naturally hold back the share price of Rolls-Royce to some extent. But, for long-term investors, the current uncertainty across the wider FTSE 100 may provide a buying opportunity. As such, now could be the right time to buy a slice of the stock, with its current management team appearing to have put in place a sound growth strategy.

“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!

Peter Stephens owns shares of Reckitt Benckiser and Rolls-Royce. The Motley Fool UK has no position in any of the shares mentioned. 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.

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- 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.