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Why I think £5k invested in these FTSE 100 stocks could make you a fortune

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The stock market crash of 2020 could lead some investors to sell FTSE 100 stocks and concentrate on assets such as cash. After all, even with interest rates at record lows, cash has outperformed shares this year.

However, over the long term, the FTSE 100 has always fully recovered from its downturns and outperformed cash substantially.

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As such, shares priced at low levels today could be a great long-term investment. With that in mind, here are two FTSE 100 stocks that could be worth adding to your portfolio after recent declines.

FTSE 100 stocks on offer

Tobacco group British American Tobacco‘s (LSE: BATS) recent trading update highlighted its financial strength during a challenging period for the global economy.

The company is still predicting revenue growth of 3% to 5% for 2020. Management is also confident that the group can hit its revenue target of £5bn from new categories by 2023/24.

At a time when so many other businesses are struggling to keep the lights on, this is encouraging. The update showcases British American’s strengths. Not only is the traditional business still expanding, but it’s also making progress on new products.

As the world moves away from traditional cigarettes, these so-called reduced-risk products should help support the group’s growth.

British American has also recently stated that the company is committed to maintaining its dividend. The stock currently yields nearly 7%, which makes it one of the most attractive income plays in the FTSE 100. At this rate of return, £5k invested in the firm could grow to be worth £10k in just seven years excluding capital growth.

As such, with British American’s share price now trading 11% down on its level of the start of 2020, £5k invested in the business over the long run could make you a small fortune.

Imperial Brands

The second of the two FTSE 100 stocks that could make you a small fortune over the long term is Imperial Brands (LSE: IMB).

Like its larger peer, Imperial seems to be coping well in the current economic environment. It’s in the process of a significant restructuring operation. Management is trying to cut costs and sell non-core assets to reduce debt. This is causing some uncertainty in the short run, but it could lead to a more efficient business over the long term.

There has been some speculation that the company’s dividend is under threat. As of yet, Imperial hasn’t confirmed or denied these rumours. However, even if the business reduced its payout by 50%, it would still offer a dividend yield of 6%. That would give the group one of the highest dividend yields of all FTSE 100 stocks.

Therefore, with the shares down 19% in 2020, now could be a great time to snap up this income champion. These numbers indicate that even without any capital growth, Imperial could double your money in 12 years.

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

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

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Rupert Hargreaves owns shares in Imperial Brands and British American Tobacco. The Motley Fool UK has recommended Imperial Brands. 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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