According to the Retirement Living Standards for 2025/26, a single person needs at least £13,400 a year. So that’s the first target.

Dividends 

The FTSE 100 has an average dividend yield of around 3.2%. So earning £13,400 a year requires a £418,750 portfolio. Contribution limits mean nobody can put that much in an ISA in one go. But there are ways to get there over time.

Investing £250 a month is one way. At a 9% annual return, that compounds to more than £418,750 in less than 30 years.

It’s worth factoring in the effects of inflation over time. But it’s hard to think of a better strategy for long-term returns. The obvious question is where to find a 9% return opportunity? But I don’t think investors need to look beyond the FTSE 100.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions. 

9% returns?

One stock I own is Bunzl (LSE:BNZL), the distributor of packaging, cleaning supplies, and safety equipment.

The company has an enterprise value of £9.9bn. And it generated £578m in free cash in 2025 (down from £634m in 2024). As a result, the stock’s fallen 29% since the start of 2025. But I think it looks interesting at today’s prices. 

The Gordon Growth Model helps investors value stocks like Bunzl. On this basis, I think it looks cheap. At today’s prices, a 9% annual return requires 3% growth a year. And I think that’s highly achievable.

Growth prospects 

In general, companies have three ways of growing their free cash flows on a per-share basis:

1. Higher sales.
2. Wider margins.
3. Share buybacks.

I think all three might be realistic for Bunzl over the next few years.

Acquisitions are a big part of the firm’s revenue growth. It has an outstanding record and a lot of future potential.

Margins are less obvious. But Bunzl’s looking to shift customers to its own-branded products with a view to boosting profitability.

Buybacks have been stop-start in the last year. Despite this, the firm reduced its share count by about 1%.

Ultimately, I think Bunzl’s a cheap stock with numerous growth opportunities. But as with any stock, there are risks.

Risks

In terms of revenue growth, the biggest threat recently has been price deflation. This comes from two sources. One is lower input costs, which Bunzl’s obliged to pass on to customers.

And the other is competition. That could offset the effect of some of Bunzl’s acquisitions. So revenue growth won’t be entirely straightforward.

On top of this, the firm has had issues with shifting customers to its own-branded products. This was a challenge in 2025.

All of these are reasons why the stock isn’t too good to be true. But I think it has a good chance of hitting that 3% growth target.

Opportunities 

Bunzl’s free cash flow yield is just under 6%. The question is whether management can turn that into 3% annual growth. I think they can. It’s been a tough 12 months, but the business isn’t in structural decline.

Bunzl’s already a big part of my ISA. But at today’s prices, I find it hard to think of a FTSE 100 stock I’d like more of when I have cash to spare.

The post How much do I need in a Stocks and Shares ISA to target a £13,400 annual income? appeared first on The Motley Fool UK.

If so, you are not alone. Investing over the long term can help people as they try to build wealth, so starting earlier can help.

The good news, though, is that it is never too late to start investing. Someone in their fifties who wants to build up a pot of extra funds before they retire still has time.

Time matters – but it’s not the only factor in successful investing

While the timeframe over which one invests is important, so are other things.

How much one invests is important too. So does what it is invested in.

By investing more not less (within what they can comfortably afford) and paying close attention to the quality of shares they buy and price they pay for them, an investor in their fifties might not be able to do as well as they could have if they had begun decades earlier – but they can close a lot of the gap.

Going for gold

Say, for example, that somebody aged 52 starts to put the maximum annual contribution into their Stocks and Shares ISA. For most investors that is £20k per year. Then, imagine they compound their ISA value at 8% annually.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Currently, a 52-year old is likely to reach State Pension age at 67. That may rise in future, but sticking with that timeline means someone has 15 years in which to compound their annual contribution, before they retire.

By 67, their ISA ought to be worth around £543k.

In this example, I presume they then stop the contributions. But what if they simply continued them?

By 70, the portfolio should be worth around £749k – and by 80, around £1.9m.

Remember – that is for someone who, in their early fifties today, does not have a penny in their ISA (and maybe does not even have an ISA yet!)

Not only do I think it is not too late to start investing in your fifties, I think it can potentially be a lucrative thing to do!

Choosing the right shares

In my example I talked about an 8% compound annual growth rate. That can be made up of dividends and share price growth, though prices going down could reduce the return. Dividends are never guaranteed.

Such a target is not easy to hit, but I see it as feasible with careful share selection.

One share I think investors should consider is janitorial and catering supplies distributor Bunzl (LSE: BNZL).

Down 6% over five years, the share price now looks like good value to me. Bunzl offers a 3.2% yield and has grown its dividend per share annually for decades.

The share has fallen because of uneven performance in the company’s US business. Another risk is higher oil prices hurting profit margins on plastic items like disposable spoons.

Still, Bunzl has spent decades building a multinational business with economies of scale. It has a well-honed business model, large customer base, and attractively comprehensive offering for customers.

Over the long term, I expect the business to do well. I hope that will be reflected both in the share price and further dividend growth.

The post Is it too late to start investing in your 50s? appeared first on The Motley Fool UK.

Boring but brilliant

International distribution and services specialist Bunzl (LSE: BNZL) is one candidate to consider. The items it handles — think food packaging and cleaning supplies — won’t set the pulse racing. But it’s partly because these things are essential that management has been able to keep raising the dividend year after year.

That said, existing investors will be wanting to forget 2025. Weaker demand in its biggest market (North America) pushed many to the exits. By the end of December, the share price had fallen by 40% or so.

But if there’s one good thing to come from all this, it’s that Bunzl shares are currently cheaper than usual. A price-to-earnings (P/E) ratio of 13 is significantly below the firm’s five-year average P/E of 19. And those dividends? Unless trading falls through the floor, the 3.4% income looks safe for now.

This stock probably won’t recover in value quickly, especially if cost inflation keeps shrinking margins.

However, as a more-reliable-than-most source of passive income, I think it takes some beating.

Steady income

Getting exposure to a utility stock or two is also worth pondering. Yes, we know that cash distributions by any company can never be guaranteed. But the beauty of firms in this part of the market is that their business models are stable and earnings are relatively predictable.

This is why my second pick is water firm United Utilities (LSE: UU).

Like Bunzl, United has been raising its dividend for multiple years. We’re not talking explosive growth — an average of 4% every year, in line with inflation. But I reckon most income investors would prefer consistency over the former.

Right now, the forecast dividend yield for FY27 stands at 4.1%. That’s solid if not exactly flashy. It’s also more than someone would get from owning a FTSE 100 tracker. In direct contrast to Bunzl, United’s share price has also been rising very nicely in recent times (+24% in the last year).

Risks here include the tight leash of the regulator and high debt due to huge capital expenditure requirements. But these are par for the course in this space.

FTSE dividend growth star

A final example of a company with a great track record for raising dividends is wealth manager Rathbones (LSE: RAT).

Supported by high margins and the fairly recent merger with the UK arm of Investec, the growth rate here averages out at around 6%–7% per year. What’s more, analyst projections have it yielding 5.1% this year.

However, Rathbones isn’t a nailed-on winner. A market crash could see clients pulling their money out, leading to a reduction in fees and eventual profit. That could slow future dividend growth and might even lead to a cut. Even in good times, the £2.3bn cap operates in a competitive industry.

But that is precisely why I’ve made sure that all three mentioned here work in different sectors. In theory, spreading money around the market in this way makes it less likely that the income stream will ever dry up completely.

The post 3 FTSE shares with many years of consecutive dividend growth appeared first on The Motley Fool UK.

For most companies, the cost of the products they sell rising is a bad thing. But in this case, it’s actively helpful for revenue growth.

Inflation

Most of the time, inflation is a nuisance for businesses. Rising costs create a difficult dilemma for management teams.

Other things being equal, doing nothing leads to lower profits. But increasing prices to maintain margins risks losing customers. Some rely on switching costs to pass on the effect of higher costs. Others hold down prices and aim to offset these with sales growth.

There are examples of great businesses on each side. And in my Stocks and Shares ISA, I own companies of both types.

One FTSE 100 name, though, has an unusual inflation strategy. That’s Bunzl (LSE:BNZL) – a distributor of consumables.

Cost-plus

Bunzl sells things like packaging, cleaning supplies, and safety equipment. A lot of the time, it does so on a ‘cost-plus’ basis. 

That means its pricing is a fixed percentage of the cost of the goods it sells. And inflation can actually be helpful in that structure.

If costs go up, Bunzl’s sales prices also increase. And since they’re a fixed percentage of costs, profits also go up. 

The bigger challenge is actually the opposite. When commodity prices fall, the firm has to decrease its prices, which can weigh on sales and profits.

That’s what happened in 2025. But it’s not something that I’m not concerned about from a long-term perspective.

Risks 

Higher prices on a cost-plus basis can risk losing customers. But Bunzl has two strategies for dealing with this.

One is encouraging them to shift to own-brand products. This can weigh on revenues, but it increases the firm’s margins. In this situation, both parties benefit. Bunzl maintains its profits and its customers spend less on consumables. 

Another is by offering a unique service. It does this by offering a huge range of products with fast, reliable delivery. That makes switching difficult for customers. And Bunzl reinforces this strength by acquiring other businesses, which increase its scale.

Outlook

Bunzl is expecting moderate revenue growth in 2026. But it anticipates weaker operating margins, for three main reasons. 

One is operating costs – energy and staff – are set to be higher. The ongoing conflict in the Middle East isn’t helping this.

Another is the effect of new contract wins. These helped to offset a major loss in 2025, but they weigh on margins in the short term. With input costs looking stable, Bunzl’s cost-plus contracts aren’t likely to cover this. So there are a few challenges ahead. 

All of these, though, look like short-term issues to me. And I think the company’s key competitive strengths are still firmly intact.

Look closer

At first sight, Bunzl looks like a business with declining profits and limited sales growth. But there’s more going on than this.

Investing well is about seeing beyond short-term macroeconomic challenges. And I think the business is fundamentally strong. The stock is already one of my largest investments.

But I’m keeping a close eye on it in as I look to try and balance my portfolio.

The post 1 FTSE 100 stock that could benefit from higher inflation appeared first on The Motley Fool UK.

At times like these, it can pay to be greedy when others are fearful. But where are the opportunities at the moment?

Falling share prices

A lot of FTSE 100 stocks have fallen sharply in the last month or so. But they don’t jump out at me as buying opportunities.

One example is easyJet. The firm’s share price is down 24% in the last month, but I think there are good reasons to be wary.

The business is in a tough industry and I can’t see a lasting competitive advantage. So I don’t want to buy the stock just because it’s cheap.

Another case is Anglo American. I think there’s reason for optimism here, since I can see a positive long-term outlook for copper.

The trouble is, the stock isn’t actually all that cheap. Despite a recent fall, it’s still 13% above where it was trading six months ago. 

The stock is cheaper than it was, but looking past the last month doesn’t suggest an unusual opportunity. So where are the bargains?

Flight to quality

Investors are often drawn towards high-quality companies in times of uncertainty. And this is a strategy that makes sense.

Strong competitive positions and relatively reliable cash flows are valuable when things are tough. That’s why these stocks become attractive.

As a result, it’s not necessarily surprising to see Bunzl (LSE:BNZL) shares up 3% in the last month. The FTSE 100, by comparison, is down 7%.

Despite this, a look back at what’s been going on with the stock suggests it might be cheap and worth considering even after its rise. It’s still down 29% from its 52-week high.

There’s a lesson here for investors. Even when things are developing fast, it’s important to keep an eye on the bigger picture.

A volatile stock market creates eye-catching moves. But that doesn’t always mean the situation has changed in a big way.

A unique proposition 

It’s been a difficult 12 months for Bunzl. Weak demand in the US  has been compounded by the company’s own mistakes.

Looking ahead, the threat of stagflation is a real risk. And that’s what the economic data seems to be indicating right now.

The firm, however, has two major advantages. One is the convenience it offers customers, alongside speed and reliability.

Bunzl offers customers packaging, cleaning, and safety products in one place. That sets it apart in a competitive industry.

A decentralised approach also means economies of scale are supported by local knowledge. And that also makes the firm unique.

Moving away from this has caused problems in the last year. But the company has responded quickly and made moves to reverse this.

More of the same 

Big stock market moves are always interesting. And they can provide huge opportunities for investors looking for stocks to buy.

The latest one, though, hasn’t made a big difference to my plans. As I see it, the best value is still where it was before.

I’m open to the idea that something might happen that gives me a reason to change course. But that hasn’t happened yet.

Moving share prices don’t turn average companies into great ones or the other way around. And that’s what ultimately matters.

The post As the stock market closes in on a correction, where are the buying opportunities? appeared first on The Motley Fool UK.

Being ready for a stock market crash is a vital part of being a good investor. And it’s probably easier than you might think. 

Crash incoming?

Conflict in the Middle East has been making share prices volatile this week. The situation is moving fast and the chance of something major happening suddenly is impossible to rule out.

Oil and gas prices have been rising due to supply concerns. And this could get much worse in the event of an extended disruption – or even military action – in the Strait of Hormuz.

Equally though, there’s a chance the situation could resolve itself relatively quickly. In that case, prices are likely to come back down and we can all go back to thinking about AI all day.

Predicting what happens next is extremely difficult at times like these. But the thing to do is try and build a portfolio that can – eventually – cope with either outcome.

Timing the market

Buying at the bottom of a stock market crash is a recipe for outstanding long-term success. Unfortunately, nobody really knows when this is until it’s too late.

Fortunately though, profiting from falling share prices doesn’t depend on getting the timing dead on. Investors can do incredibly well even if they’re slightly early or slightly late.

During the pandemic, the FTSE 100 fell 30% in a month. But even investors who bought at the worst time – just before the crash – have still managed a 76% return in six years.

Never mind missing the bottom, that’s 10% a year for hitting the top. So investors don’t need to worry about getting the timing right to take advantage of falling share prices.

One to watch

One stock I’m watching and might consider if it falls further is Bunzl (LSE:BNZL). The FTSE 100 distributor had a difficult 2025, with earnings per share down 7.7% partly due to a weak trading environment in the US. 

If geopolitical tensions make that situation worse, the company might again face challenges in its largest market. And that’s a risk anyone considering the stock has to keep in mind.

The firm though, has an big long-term advantage. Its scale means it can get a wider product range to customers faster and more reliably than competitors – and that’s extremely valuable. 

On top of this, the stock doesn’t look expensive – even at today’s prices. Despite a decline last year, £579m in free cash flows represents an 8% return on a market value of £7.08bn.

Investing strategy

Being a good investor isn’t about forecasting what the stock market is going to do next. That’s a good thing, since pretty much nobody can actually do that in any kind of reliable way. 

It is however, about knowing what might happen and being ready to deal with it. And that’s something investors can do by preparing to buy shares when prices become attractive.

The conflict in the Middle East might make share prices fall sharply. But if they do, investors don’t need to time things perfectly – or even well – to have a shot at some great returns.

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When stock prices fall suddenly, this can be a golden opportunity to buy into good businesses at fair prices. For example, here are two Footsie firms in which I’m thinking about increasing my family’s ownership.

FTSE falling

At its all-time high, the UK’s blue-chip index peaked at 10,934.94 points on Friday, 27 February. As I write on Tuesday afternoon, the index has dropped 3.5% and stands at 10,407.22, down 5.1% from its peak. This is hardly cause for panic, but military operations often prove tricky and last longer than expected. Hence, cautious investors may sell shares to avoid anticipated falls.

However, every stock sale includes a buyer and a seller, Thus, I often use lower prices to buy more discounted shares.

Dirty Diageo

Take global drinks Goliath Diageo (LSE: DGE), whose stock has been slumping since its record high at end-2021. At present, the share price is 1,577.5p, valuing this long-established British business at £35.1bn. That’s about three-fifths below its peak market value.

In common with other major suppliers of alcoholic drinks, Diageo’s sales are falling — especially in key regions such as the US and China. Hence, its shares have dived 27.2% over one year and crashed 46.4% over five years (excluding cash dividends).

Speaking of dividends, Diageo’s new CEO ‘Drastic’ Dave Lewis has more halved the dividend. His aim is to to cut Diageo’s debt pile and fund future growth. Thus, the trailing cash yield will likely be below 2% a year going forward.

That said, it’s not clear to me whether Diageo stock is a blow-out bargain or a value trap. I’d prefer to see signs of a turnaround in sales, profits, and cash flow before committing more money to this business. Therefore, I’ll hold fire for now.

Bunzl bounce back?

Bunzl (LSE: BNZL) is another British business with a global reach. It supplies various cleaning, safety, and hygiene products to organisations in North America, the UK and Ireland, Europe, and the rest of the world. Boosted by organic growth and repeated acquisitions, Bunzl boomed for almost two decades.

However, after the company warned of slowing growth on 16 April 2025, its shares crashed 25.6% that day. I swooped in, buying the stock for my family portfolio for 2,292p a share. As I write, the shares trade at 2,210p, so we’re down about 3.6% so far.

Then again, I have no interest in crystalising our paper loss. For me, this £7.2bn Footsie firm could be a classic ‘fallen angel’ that becomes a recovery play. Meanwhile, the shares are down 28.1% over one year, but up 1.5% over five years. So maybe 2024/25 price plunge was just a blip?

While we wait for Bunzl’s share price to recover, the stock pays us a decent dividend of 3.4% a year. What I’d like to see is a return to sales growth leading to higher earnings, but this could take time. But I’ll give Bunzl the benefit of the doubt — and I’ll consult with my co-manager (my wife) on whether we should buy more!

The post After the FTSE 100’s latest slide, I spy bargain shares! appeared first on The Motley Fool UK.

Its name? Bunzl (LSE: BNZL). Many readers may not recognise it. It’s always flown beneath the radar, even while delivering steady share price growth and hiking its dividend every year for more than three decades. The Bunzl share price has nudged up 2% following today’s full-year results, even as global markets plunge on Iran war fears. Is there more to come?

Bunzl is a distribution and outsourcing group supplying safety and hygiene equipment, chemicals, packaging, disposable tableware, protective gear, and first-aid kits. The kind of things businesses need but don’t shout about.

FTSE 100 dark horse

It’s hardly glamorous, but Bunzl has muscle. It has expanded worldwide through an aggressive acquisition strategy, buying a dozen businesses in a good year. I’d watched the shares enviously for years as the dividend income and share price growth compounded quietly. I called it the ultimate FTSE 100 dark horse and promised myself I’d buy it one day. Then last year the shares suddenly plunged by a third after a profit warning linked to slowing US sales. Tariff concerns added to the pressure. I dived in, buying three times as the price retreated.

Today, I’m down 5% but that’s okay. Recoveries take time. I’m prepared to be patient, particularly as Bunzl yields around 3.5%, which pays me to wait.

Today’s (2 March) results weren’t great, but were better than markets feared. Adjusted operating profit actually fell 4.3% at constant exchange rates to £910.3m. Revenues, however, rose 3% to £11.84bn, largely driven by eight completed acquisitions across seven countries, at a cost of £132m. That’s relatively quiet by its standards, but Bunzl said its pipeline remains active with a better outlook for 2026

Underlying revenue edged up a rather feeble 0.4%, but the pace picked up to 0.9% in the second half. Similarly, while operating margins slipped 0.6% to 7.7%, the drop moderated in the second half to 0.3%. Management cheered investors by pointing to improved trading in North America, stabilisation in Continental Europe, and margin expansion in the UK and Ireland. So the future looks that little bit brighter.

Start of the recovery

Cash conversion remained strong at 95%, evenn though free cash flow fell 8.7% to £579m. The board reiterated guidance for moderate revenue growth in FY26, albeit at slightly lower margins. A full-blown recovery will take time, but recent troubles leaves the shares looking terrific value on a price-to-earnings ratio of 10.3.

A stronger global economy would help, particularly in the US. So would greater clarity on tariffs. But while sector after sector frets about the AI threat, I struggle to see Bunzl’s bread-and-butter products being disrupted. This is a practical, down-to-earth business selling essentials companies will need for years. The shares are down almost 35% over 12 months and trade around levels last seen a decade ago, but they’ve rebounded 8.5% in the past month. Is this the start of something big?

For me, Bunzl remains one of the most compelling recovery stories on the FTSE 100 and well worth considering before it potentially climbs higher.

The post Is this a once-in-a-decade chance to snap up my highest conviction UK share? appeared first on The Motley Fool UK.

Of course, adding in dividends boosts these returns even further. For example, the FTSE 100 Total Return Index (TRIUKX) has jumped by 27.8% in 12 months. This easily beats growth indexes such as the US S&P 500 and even the tech-heavy Nasdaq Composite index.

Sadly, not all Footsie stocks have followed the market higher. Indeed, I found 24 FTSE 100 shares have lost value over the past year. But which business in particular might be primed for a powerful comeback in 2026/27?

Bunzl gets battered

Ever heard of Bunzl (LSE: BNZL)? This British business is a leading distribution and outsourcing company for food-service providers and food retailers. Its main products include safety and hygiene equipment, chemicals, packaging, disposable tableware, personal protective equipment, cleaning machinery, and first-aid kits. In other words, quite a lot of plastic gear.

The company divides itself geographically into four business units: North America (the largest), the UK and Ireland, Continental Europe, and the rest of the world (largely Australasia).

For two decades, Bunzl’s revenues and profits grew rapidly, before hitting a hurdle in 2024/25. Falling sales growth and profits saw the shares take a beating in 2025, crashing 25.6% on a single day (16 April 2025) after Bunzl released disappointing results. That day, I grabbed this potential ‘falling knife’, buying Bunzl for my family portfolio at 2,292p a share.

As I write, the Bunzl share price stands at 2,120p, valuing this group at £6.9bn. At their 2025 high, the shares briefly hit 3,488p on 13 February 2025, so they have plunged 39.2% since that date. The share price is also down 5.2% over five years, making it a full-on FTSE 100 flop.

As a value/income investor, my lifelong love of bargains often draws me to potential ‘fallen angels’ such as Bunzl. Its falling share price has pushed up the dividend yield to 3.5% a year, above the wider index’s cash yield of below 3% a year. In addition, the shares trade on a modest rating of 14.6 times earnings, delivering an earnings yield approaching 6.9% a year.

Big news (and big moves?) on 2 March

For the record, if I were vastly wealthy and could afford to buy this entire business today, I would gladly do so. Indeed, it would take a global meltdown for me to part with this stock. At least, that is, until 2 March, when the group releases its 2025 full-year results.

If these are particularly bad — say, revenues, profits margins, earnings, and cash flow all slump — then I might be tempted to change my mind and dump our stock.

Then again, Bunzl’s human-intensive markets mean that it appears largely safe from the AI gloom hitting other industries. In short, 2 March is a huge day for us and other Bunzl shareholder-owners, so mark your diaries now.

Finally, what other shares could make big moves in 2025/26? Read on to find out!

The post Down 39%, this FTSE 100 share could rocket to recovery! appeared first on The Motley Fool UK.

Bunzl could be brilliant

Let’s start with the one that’s showing signs of life, distributing and outsourcing group Bunzl (LSE: BNZL). If it’s an unfamiliar name, that’s because it does the low-key job of selling all the bits and bobs that businesses need to keep functioning, from disposable coffee cups to rubber gloves and cleaning equipment. But it’s turned this into a £6.7bn global business through smart and aggressive acquisitions.

Bunzl boasts a fabulous track record of increasing shareholder payouts every year, stretching back more than three decades. I had it on my watchlist for years, hoping for a decent entry point. Then last year it issued a profit warning, following slowing revenues in the US.

The shares plunged by a third and I bought them on three occasions. They’re still down 36% over 12 months but now they’re starting to show signs of life, up 7% in the last month. I’m almost back to break-even point and hoping for a lot more excitement ahead.

Of course, it’s not a done deal. My big worry is that the US economy will continue to struggle, and the board has work to do widening margins. But with a lowly price-to-earnings (P/E) ratio of 10.9, I think Bunzl shares are still well worth considering. The trailing yield has crept up to almost 3.5% too. 

Bunzl has another advantage. Investors are panicking over any stock that might be hit by the artificial intelligence revolution. Until AI can replace the disposable rubber glove, Bunzl looks safe.

JD Sports is slow out of the blocks

JD Sports Fashion (LSE: JD) is another FTSE 100 stock I was watching for years. I spotted my chance in January 2024, as the shares plunged following a disappointing Christmas. JD was extending its footprint in the US, via the $1.1bn acquisition of US sportswear rival Hibbett, and I thought this was a brilliant opportunity to buy it at a bargain price. Sadly, I jumped too soon.

Christmas 2024 was poor too, and last Christmas wasn’t much better as US consumers continued? to feel the burn, as did key JD partner Nike.

The JD sports share price is now down 56% over three years, but the pace of descent has slowed, falling just 4% over 12 months (personally, I’m down 20%). The shares look insane value with a P/E of just 6.3, and any data showing a recovery in consumer confidence typically triggers a spike. So far, they’ve always retreated afterwards.

My big worry is that young people will have less money to spend on trainers and sportswear, with unemployment high and AI menacing entry-level jobs. But I still think JD Sports is worth considering for investors who believe the global economy is heading for brighter days. Patience is required though.

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