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I’d buy these 2 FTSE 100 stocks in a Stocks and Shares ISA today to make a million

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While the FTSE 100 may have made double-digit gains in 2019, there are still a number of large-cap shares that seem to offer good value for money.

In many cases, their growth potential is high. This could mean that they deliver stronger capital growth in the coming years than other mainstream assets such as bonds and cash.

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With that in mind, here are two FTSE 100 shares that could be worth buying today. They may improve your chances of making a million in the long run.

Barclays

The outlook for Barclays (LSE: BARC) has been uncertain for a number of years. Brexit risks and a low interest rate environment have not produced especially favourable operating conditions for the wider banking sector. Those same risks could be present throughout 2020, which may mean that the stock struggles to post strong capital growth in the near term.

Despite this, the recent results from the bank showed that it is delivering a resilient performance. It is adopting a disciplined stance on costs, while seeking to invest in digital operations that could catalyse its financial prospects.

Furthermore, Barclays is expected to pay a rising dividend over the medium term. Next year, for example, its dividend is forecast to be 60% higher than it was in 2019. This puts it on a forward yield of 5.9%, with its shareholder payouts expected to be covered 2.5 times by net profit in 2021.

This suggests that there is scope for the company’s dividend payout to rise at a brisk pace over the coming years, which could enhance its appeal to a wide range of investors. Ultimately, a rising dividend may boost demand for its shares and produce an improving performance for investors.

InterContinental Hotels

The recent trading update from InterContinental Hotels (LSE: IHG) showed that the company delivered a robust performance, despite weakness in key markets such as China and the US.

As a global business, the company’s prospects are highly dependent on the macroeconomic outlook. With the US and China having signed a ‘phase one’ agreement on trade, the prospects for the world economy may be more positive than they were in 2019. As such, it would be unsurprising for investors to become increasingly upbeat about the financial potential of IHG.

Looking ahead, the stock is forecast to post a rise in its bottom line of 7% in the current year and 8% next year. This suggests that its strategy is performing well, and it could offer a stronger rate of growth as the macroeconomic outlook improves.

Although Intercontinental Hotels trades on a relatively high price-to-earnings (P/E) ratio of 20.3, its growth potential may mean that it deserves to have a premium valuation. Therefore, while there are cheaper options in the FTSE 100 at the present time, the risk/reward ratio offered by the stock could be highly attractive.

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Peter Stephens owns shares of Barclays. The Motley Fool UK has recommended Barclays and InterContinental Hotels 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.

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