Best stocks to buy now: 1 FTSE stock I’d buy with £1,000

Jabran Khan details one of his FTSE best stocks to buy now that he would be willing to invest £1,000 in for the long term.

| More on:

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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

FTSE 250 incumbent Tritax Big Box (LSE:BBOX) is firmly on my best stocks to buy now list. It is in the logistics industry, which is a high growth industry. If I had to choose a stock to buy right now with £1,000 this would be high on my list.

High-growth industry

Tritax Big Box is a real estate investment trust (REIT). It invests in and funds pre-let development logistics facilities and real estate. Logistics has thrived over the pandemic period as restrictions meant high street stores were closed. In turn, consumers turned to online ordering. This boom meant many firms (who didn’t already have it set up) needed to facilitate online platforms for orders, e-commerce, and fulfilment. This is where Tritax comes in. It is firmly on my best stocks to buy now list and has been for some time.

Tritax was established and profit-making prior to the pandemic and it is not a flash in the pan. Nor has it emerged as one of my top FTSE stocks solely based on pandemic related results and demand.

Performance and share price

Tritax announced full-year results for the year ending 31 December 2020 back in March. These made for excellent reading. My key takeaways were a 20% increase in profit and the fact that the value of its portfolio increased by nearly 12% to over £4bn. In addition, earnings per share increased by over 8% and a dividend of 6.4p per share was declared. Many of the incumbents on my best stocks to buy now list are good dividend payers.

A more recent update announced on 6 May 2021 by Tritax covered the current financial year to date. I believe these results also made for good reading. Demand remained high but Q1 was affected by the fact there wasn’t enough ready-to-occupy space available. This points to the busy year 2020 was for the logistics sector.

Tritax said over 99% of FY2020 rents had been collected and over 98% of FY2021 Q1 and Q2 rents had also been received, which is good. Furthermore, it reported new multi-million pound sites it had acquired that had already been snapped up in lucrative rental agreements with its clients. The FTSE 250 incumbent declared an interim dividend of 1.6p per share too a day after this trading update.

Best stocks to buy now carry risks too

I believe Tritax’s biggest issue is competition. In a thriving market, competition could lead to pricing pressure and in turn affect its balance sheet. There are many other players out there too. The other risk is around dividend growth. Dividend growth isn’t usually the best in REITs. In fact, Tritax’s full-year dividend for 2020, was 6% less than in 2019. There are better dividend payers out there on my best stocks to buy now list.

Overall, I do like Tritax and believe it is priced well, with an established business that is generating profit in a thriving market. Although the dividends aren’t the biggest, many FTSE firms have cut dividends altogether since the crash.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended Tritax Big Box REIT. 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.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »