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Looking for stocks to buy? I’d go for this FTSE 100 dividend stock and this growth stock

If you’re looking for stocks to buy right now, you’re in luck. Economic uncertainty – a result of both US/China trade wars and Brexit – is throwing up a lot of attractive opportunities. With that in mind, here’s a look at one FTSE 100 dividend stock and one AIM-listed growth stock I’d be happy to buy for my portfolio today.

8% dividend yield 

Financial services group Legal & General (LSE: LGEN) has seen its share price fall nearly 15% since the start of August, and in my view, this share price weakness has created a fantastic buying opportunity. The stock remains one of my favourite FTSE 100 dividend stocks due to the fact it offers a colossal dividend yield of nearly 8%, has robust dividend coverage, and has a good track record of dividend growth.

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LGEN’s most recent half-year results, released on 7 August, showed that the company has plenty of momentum right now. For example, operating profit was up 11% on last year, while earnings per share climbed 13%. In addition, the interim dividend was lifted to 4.93p, a 7% increase on last year’s interim payout of 4.6p. Looking ahead, management advised the company is “well prepared for the full range of foreseeable Brexit outcomes” and that it remains confident in its ability to deliver “growing value for shareholders.”

With the stock currently trading on a forward-looking P/E ratio of just 6.9, I think LGEN offers considerable value at the moment. I see significant long-term investment appeal.

Dynamic growth company 

If you’re more of a growth investor, one stock I’d recommend taking a closer look at is online fashion retailer Boohoo Group (LSE: BOO). Its share price has already risen over 40% this year, however, I think there is plenty of potential for further gains.

Boohoo shares look interesting to me right now for a number of reasons. Firstly, due to the popularity of its brands – which include Boohoo, PrettyLittleThing, Nasty Gal, MissPap, Karen Millen and Coast – among Millennials, the company is growing at a prolific rate. For example, half-year results, released in April, showed top-line growth of 48%, while a trading update in June for the three months to 31 May showed total group revenue growth of 39%. Looking ahead, analysts expect full-year revenue growth of 32% this year, followed by top-line growth of 27% next year.

Yet despite this, Boohoo’s share price is actually no higher than it was two years ago. After a strong run between early 2015 and mid-2017, the shares have experienced a two-year consolidation period. Given that revenues and profits continue to soar, I’m convinced the share price will move higher sooner or later. 

Secondly, since mid-August, four Boohoo directors have purchased shares in the company with two of these directors buying 100,000 shares (approx £225,000 worth) each. This suggests that these insiders are confident about the future and expect the shares to rise. In my view, this is a bullish signal.

Trading on a forward-looking P/E ratio of around 47, Boohoo shares aren’t particularly cheap. However, considering the growth rate of this dynamic company, I think the risk/reward proposition is favourable. Analysts at Jefferies have a price target of 325p for the stock – 41% above the current share price. 

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Edward Sheldon owns shares in Legal & General Group and Boohoo Group. The Motley Fool UK has recommended boohoo group. 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.