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3 reasons I’d buy FTSE 100 stocks in an ISA in 2020!

Despite the FTSE 100 recording a 12% gain in 2019, the index continues to offer long-term investment appeal. Many of its members trade on low valuations, and could deliver higher returns than other mainstream assets in 2020.

As such, now could be the right time to buy a range of large-cap shares within a Stocks and Shares ISA. They may produce impressive tax-efficient returns that could boost your financial prospects.

Valuations

While the FTSE 100 currently trades within 5% of its all-time high, it appears to offer good value for money. As such, it could deliver further capital growth following an impressive performance in 2019, and over the past decade.

Certainly, after a long bull run, a bear market is likely to occur at some point in the coming years. However, with the world economy forecast to grow at an encouraging pace in 2020, the valuations across numerous sectors within the FTSE 100 appear to be relatively low. Investors seem to be factoring in a challenging period for the index that may not actually occur in 2020. This may allow long-term investors to capitalise on favourable risk/reward ratios that ultimately produce high returns in the long run.

Relative appeal

Compared to other mainstream assets such as bonds, cash and property, the FTSE 100 appears to be highly attractive. Interest rates are not expected to rise rapidly in 2020 or in the coming years, which may mean that savers endure further negative real-terms returns. Bond yields are low for investment-grade issues, which means that they may only be able to offer modest real-terms returns. And with tax changes across the buy-to-let sector, the net returns available to landlords may prove to be very disappointing.

Therefore, while risks such as Brexit and the US election are set to dominate 2020, investing in the stock market could prove to be the best use of your capital. The potential reward on offer from the FTSE 100 may more than adequately compensate investors at a time when risks facing the global economy continue to be high.

Tax efficiency

Investing in FTSE 100 shares through a Stocks and Shares ISA is very tax efficient. Up to 20k can be invested per tax year, and all amounts held in an ISA (and gains made on the investment) are not subject to tax. This could significantly reduce your tax bill, not only in the next 12 months, but also in the long run. Thats especially the case since the annual tax-free dividend allowance if your shares are held outside of an ISA is only 2k, which could lead to many retirees paying dividend tax when relying on a nest egg to fund their living expenses in older age.

As such, opening a Stocks and Shares ISA and buying a diverse range of FTSE 100 shares could be a sound move. The indexs low valuations and relative appeal could mean that it offers a favourable outlook in 2020.

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No savings at 50? I’d buy FTSE 100 stocks in 2020 to retire early on a rising passive income

Generating a rising passive income in retirement could be a realistic goal even if you have no savings at age 50. The FTSE 100s 16% total return in 2019 highlights the growth potential that can be provided by the stock market.

As such, now could be the right time to buy a range of large-cap shares to boost your chances of enjoying financial freedom in older age. Despite its surge in the last 12 months, a number of FTSE 100 shares appear to offer growth potential at a reasonable price. They may also provide a generous income in the long run that beats inflation.

Investment potential

Since most people aged 50 are likely to have a long time horizon until they choose to retire, they may wish to focus their capital on riskier assets such as shares. Certainly, they may be more volatile than assets such as cash and bonds. However, in the long run they may provide higher returns. And with a long time horizon, there is likely to be sufficient time for a recovery from a bear market or recession.

At the present time, the FTSE 100 appears to offer numerous opportunities to generate an impressive total return. Its performance in 2019 may have been exceptional, but its 9% annualised total returns since inception in 1984 highlight that the index has a solid track record when it comes to generating growth.

With many investors adopting a cautious stance at the present time due to risks such as Brexit and a global trade war, many large-cap shares trade at a discount to their intrinsic value. This could mean that their returns are highly impressive over the coming years, which may enable you to generate a sizeable nest egg by the time you retire.

Passive income opportunity

As well as its growth potential, the FTSE 100 also offers an impressive income opportunity. Around a quarter of its members have yields that are above 5% at the present time. In many cases, they are expected to produce strong bottom-line growth, which could enable them to grow dividends at a faster pace than inflation.

This could mean that you gradually build a nest egg capable of providing an attractive income in older age especially when compared to the low returns that are available on other assets such as cash and bonds.

Starting today

With it being simple and relatively cheap to start investing in the stock market, now could be the right time to start buying FTSE 100 shares. They may have experienced rapid growth in the past year, but that could continue, and their track records and valuations suggest that further upside may be on offer. In time, they could make a significant contribution to your retirement plans even from a standing start at age 50.

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Forget the Cash ISA! I’d buy this 6%-yielding FTSE 100 stock

According to my research, the best easy-access Cash ISA on the market at the moment offers investors an interest rate of just 1.35%. This pitifully low rate of return does not even cover inflation. As a result, I think investors should go for high-yielding FTSE 100 dividend stocks instead.

A company that stands out to me right now is Rio Tinto (LSE: RIO).One of the largest mining companies in the world, Rio is extremely good at what it does.

The miner is the worlds largest pureplay iron ore producer, but it also produces several in-demand commodities such as lithium, a core component of batteries used in renewable energy storage and electric vehicles.

Fat profit margins

Rios scale, and the fact that it owns some of the most productive iron ore mines in the world, enables the company to generate impressive profit margins. Its Pilbara iron ore operations, for example, yielded an EBITDA margin of 72% during the first half of the groups 2019 financial year, thanks to a combination of low operating costs and rising iron ore prices.

Overall, for the six months to the end of June 2019, Rio reported $10.3bn of EBITDA with an EBITDA margin of 42%. Return on capital employed, a measure of profitability for every $1 invested in the business, hit a record 23%.

What is even more impressive,in my opinion, is Riosis cash generation. The company reported free cash flow from operations of $3.9bn in the first half of 2019, whichallowed management to announce cash returns of $7.8bn to shareholders.

Management also announced a 19% increase in the ordinary dividend for the second half of the year to $1.51. Including this, City analysts believe Rio will distribute a total of $4.50 per share in dividends to investors for 2019, giving a dividend yield of 7.5% on the current share price.

A step back

Unfortunately, analysts do not currently expect the stock to repeat this performance in 2020. However, they are forecasting a total distribution for the year of $3.60, giving a dividend yield of 6% on the current share price.

Considering Rios extremely healthy profit margins and strong balance sheet, (the firm reported a net gearing ratio of around 12% at the end of June 2019) Im optimistic that the company will hit this target. In fact, I think theres a good chance Rio could actually surpass it, considering the trajectory of iron ore prices over the past six months.

In November 2019, iron ore was valued at approximately $90 per dry metric tonne unit, as compared to around $73.30 in November 2018, and steel producers are forecasting increased demand over the next 12 months as global economic activity picks up and uncertainty declines. It costs Rio about $20 to produce a tonne of iron ore.

Thanks to its low operating margins, rising iron ore prices will benefit Rio more than other producers, suggesting that 2020 could be another year of growth for the company. Right now you can buy this opportunity for just 10 times forward earnings, a price that I think seriously undervalues the firm considering its growth and income potential.

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He even anticipates that the dividend could grow nicely too as this much-loved household brand continues to rapidly expand its online business and reinvent itself for the digital age.

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The exact time I’d buy Sirius Minerals shares

Sirius Minerals (LSE: SXX) is currently in limbo. Nobody knows whats going to happen, and time is running out for the polyhalite miner. Many shareholders have seen their large and hefty investments turn into little more than pennies after the failure of a $2.5bn JP Morgan financing plan due to the bondholders withdrawing.This left Sirius adrift on a life raft, with no land in site.

Sirius needs cash

Since the failed bond issue, the company has taken control of its operations and slashed some costs in an attempt to slow the cash burn (one may wonder why this wasnt done earlier), but it is only buying time before the inevitable. It is unlikely that any bondholder is going to fund Sirius Minerals, so when debt is ruled out the only other option is equity. So the question becomes, how likely is it that someone will offer cash?

Many were hoping that a Conservative government under Boris Johnson would salvage the project. I think that if the banks werent bailed out in the 2008 financial crisis, it is unlikely that the government will prop up a project that cant get proper funding due to its lack of economic viability. Maybe the project is viable and the problem is instead a failure of management. Either way, shareholders knew the risks when they funded this project, and unfortunately events havent gone their way.

When Id buy Sirius Minerals stock

Currently, everyone is bearish on Sirius Minerals because it has the begging bowl out, and the vultures smell blood. The negotiating position of the plc is weak. Anyone who isnt a shareholder already will be wanting to pick up the project on the cheap.However, Sirius Minerals does have a large following of retail investors. It is said that there are some 85,000 retail shareholders in the business, and if the company can tap those cash sources then they may be able to use it as a bargaining chip to fend off aggressive offers.

If Sirius Minerals can sort its funding out, then that could be the start of a bounce back for the stock. Currently, the risk is high but it also might be priced in already. The market cap stands at 256m at a share price of 3.6p, and the company had 349m in cash as of the end of June 2019.That said, the company also invested 171m in that year and will require over 2bn in capital expenditure to complete the mine and get it up and running. Its a lot of money a lot more than the equity value is currently worth.

I cant see the company getting this cash but if it does then the tables may well turn. Ill be watching for financing news closely.

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Can this brilliant FTSE 100 stock performance continue into 2020?

The retail business is suffering, and fashion can be fickle, but Ive always liked Next (LSE: NXT) as an investment.

Near me, theres a branch of Next opposite a Marks & Spencer store, and the contrast can hardly be greater. M&S keeps failing to attract customers for its clothing, while Next doesnt seem able to do anything wrong.

Thats borne out by the companys Christmas trading figures, released Friday, which came in ahead of expectations. In the quarter to 28 December, full-price sales were up 5.2% (and up 3.9% for the full year).

Next has now upped its full-year profit guidance a little, by 2m to 727m, with an EPS boost of 5.4% predicted. Looking forward to the year ending January 2021, initial guidance suggests a further 3% gain for full-price sales, with EPS up another 5.4% (which is slightly ahead of brokers forecasts).

Online

I find the split between traditional store sales and online sales interesting, with the former declining by 4.6% over the year and web sales up 12.1%. And I think thats where Next has a strong competitive advantage. While some competitors are struggling to make a name for themselves as online destinations of choice, Next was ahead of the pack and has had its web offering running for years with growing success.

The only slight disappointment is that end-of-season clearance rates to date have been slightly lower than its expectations, but I suspect thats still a good bit better than many struggling retailers are likely to have achieved.

The share price had a great 2019, having put on 60% over 12 months (while M&S, sadly, saw its shares fall by 15% to add to that companys woes). But surely that must have led to some sort of premium valuation?

Well, only a little. Sure, were looking at shares on a forward P/E multiple of 16, but I see that as merely a deserved valuation rather than anything to be troubled over. Popular growth shares typically command valuations well above that, often double and more, so I think the number of momentum investors is probably relatively small.

Dividend

Dividends are important to me, and Nexts are nowhere near the biggest on the market at around 2.5%. But they should be covered more than 2.5 times by earnings, which is very healthy. Im always quite scathing towards companies that put paying dividends ahead of their balance sheet health, and keep handing over large amounts of cash while, for example, shouldering huge debts. Nexts approach, by contrast, gives me more confidence in its dividends in the years to come rather than just this years, and thats a good thing.

Oh, and the dividend is generally progressive too, though it was kept flat in the two no-growth years of 2017 and 2018. But if forecasts come good, it will have been lifted by 15% over the past five years, and even managing to match inflation through the last few years of retail turmoil is a pretty good achievement in my book.

Now, after all that positive thought, its only fair to point out that my Fool colleague Royston Wild paints a more bearish picture of Next shares, and its important to look at all sides of an investment decision.

Will the shares keep climbing in 2020? I think theyre on a fair valuation now and more likely to tread water, and I think therell be better buying opportunities in the future.

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Not only does this company enjoy a dominant market-leading position

But its capital-light, highly scalable business model has been helping it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns in fact, in 2019 alone it returned a whopping 151.1m to shareholders in dividends and buybacks!

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ISA investors! 2 cheap dividend stocks that could keep rising after US airstrikes

Its no surprise to see investors and traders bale out of share markets and plough into less-risky assets following news overnight of fresh US military action in Iraq. The American airstrikes that have killed top Iranian general Qassem Suleimani in Baghdad is seen as a major escalation in the power struggle in the Middle East, an act for which Tehran has vowed to enact severe revenge.

Traditional safe havens like precious metals and currencies like the Swiss franc and Japanese yen are thriving in Friday trade, while some classic defensive stocks such as gold producers are defying the broader gloom washing over equity markets to rise in end-of-week trade.

Gold gains!

Take Highland Gold Mining (LSE: HGM), for instance. This is a share which has risen 4% on Friday to levels not seen since November, propelled by the rise in bullion prices. Gold was last trading at $1,550 per ounce, up 20 bucks on the day and at levels not seen since the spring of 2013.

I recently explained why theres a galaxy of reasons why gold prices could surge in 2020, and this fresh face-off between the US and Iran provides another reason to expect the precious metal to surge in the months ahead.

And in my opinion, buying shares in AIM-listed Highland Gold is a great way to play this theme. With production increasing and gold values expected to remain robust, City analysts expect earnings to rise 12% in 2020. This leaves it trading on a rock-bottom P/E ratio of 9.1 times at current prices, leaving plenty of scope for the share price to keep rising. And whats more, a mid-cap-beating 3.5% dividend yield adds an extra sweetener.

Footsie firm on the rise

Gains over at BAE Systems (LSE: BA) have been more modest this morning, though a 0.2% share price rise means that the defence giant has outperformed most other FTSE 100 shares. It stands to reason that the arms-makers have risen following new military action from the US, and to expect them to keep climbing as the situation in the Middle East potentially deteriorates.

Military conflict is a tragedy best avoided, but we cannot ignore the fact that as a major supplier to the US military, BAE Systems would be a key beneficiary of any escalation in hostilities with Iran by air, sea, ground and even in cyberspace. And as an interesting side note, the Footsie firms close relationship with Saudi Arabia, Irans main opponent in the region, could also receive a boost should the political and military situation worsen.

Strength in UK and US military budgets means that City brokers expect profits at BAE Systems to edge higher again in 2020, this time by 5%. And this leads to predictions of more annual dividend growth, meaning a chubby 4.2% yield. Throw a bargain P/E multiple of 12 times into the bargain too and I reckon the weapons maker is a top buy at this moment in time.

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Forget Premium Bonds! This could be an easier way to make a million

Premium bonds are a simple way to save money with the added appeal that you could win cash prizes to top up your savings. Although this seems a fun and exciting way to save your cash, I dont think its the smartest way to put your money to work.

The odds of winning cash prizes are slim. Each 1 Premium Bond you hold has odds of 1 in 42 billion of winning 1m. Two bonds per month will win 1m, 3.3m bonds will win 25 and over 84 billion bonds will win nothing at all.

Low-risk appeal

Anyone over the age of 16 can buy Premium Bonds and the maximum investment is 50k. Adults can also buy them for children and the minimum investment for anyone to get started is 25. Their simplicity and ease of getting started in saving has turned them into the UKs biggest savings product and over one-third of UK citizens own them.

Their biggest attraction is that your savings are 100% safe because NS&I is backed by HM Treasury. But Premium Bonds put your savings at the mercy of inflation, devaluing them over time, unless youre one of the lucky few who has winning bonds.

Stocks, on the other hand, can increase in value. The FTSE 250 has produced an average annual return of over 11% during the past 10 years and the figure is 7% for the FTSE 100. Whereas Premium Bonds boast a 1.4% annual return, thats only an average, so as can be seen from the figures above, most bondholders will receive no percentage return at all.

Stock market returns

I think investing in the stock market is a better way to put your savings to work for you. Many shares offer the advantage of regular income, which stock investors can enjoy through dividends.

There is, of course, more risk in stock market investing than there is in buying Premium Bonds, but risk brings reward and the rewards to stock market investors are more readily achievable.

The worlds most successful investors stick with it for the long term and do so through both good times and bad. Reinvesting dividends creates compounding, which encourages your initial investment to grow at a faster rate.

Making a million

Although it may seem an unattainable dream, many investors really do become millionaires through their stock market investments.

A simple way of achieving long-term wealth is investing small regular amounts.If you invest 300 per month in a tracker, such as the Vanguard FTSE 100 ETF, which tracks the FTSE 100, at an average annual return of 4.8%, 40 years later, your total investment would be worth close to 425k.

If, however, you invest in a fund with an average annual return of 9%, over those 40 years, compounding would create almost 1.3m. Obviously the more you can afford to invest monthly, the higher your final returns.

These examples go to show that investing in stocks and shares over the long term can lead to millionaire status and it is a more achievable way of doing so than via Premium Bonds.

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Income-seeking investors like you wont want to miss out on this timely opportunity

Heres your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this out-of-favour business thats throwing off gobs of cash!

But heres the reallyexciting part

Our analyst is predicting theres potential for this companys market value to soar by at least 50% over the next few years…

He even anticipates that the dividend could grow nicely too as this much-loved household brand continues to rapidly expand its online business and reinvent itself for the digital age.

With shares still changing hands at what he believes is an undemanding valuation, now could be the ideal time for patient, income-seeking investors to start building a long-term holding.

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Forget gold and Bitcoin! I’d invest £1k in these 2 FTSE 100 stocks to make a million

The prices of gold and Bitcoin surged 18% and 90% higher respectively in 2019. Both assets delivered a higher return than the FTSE 100, which recorded a total return of 16% in the same year.

However, with the FTSE 100 offering a wide range of shares that appear to be undervalued based on their growth prospects, now could be the right time to buy large-cap shares for the long run. They could offer a better chance of making a million than gold and Bitcoin based on their risk/reward ratios.

With that in mind, here are two FTSE 100 stocks that could be worth buying today. Their strategies could enable them to deliver strong capital growth in the coming years.

Tesco

The recent half-year results from Tesco (LSE: TSCO) highlighted the progress being made by the supermarket. It has successfully rolled out its Exclusively at Tesco brands at 550 stores, and they are gaining market share. It has also improved the quality of its products through an investment in areas such as fresh food. This has catalysed customer satisfaction levels, which could enable the business to enjoy an increasing degree of loyalty over the medium term.

Tescos cost savings have been ahead of its targets in recent years. They have helped to drive margins higher at a time when strong sales growth has proved to be challenging to achieve. Its plans to increase online capacity and boost its store opening programme could further improve its financial performance in the long run.

With the retailer currently trading on a price-to-earnings growth (PEG) ratio of 1.9, it seems to offer fair value for money given its long-term strategy. As such, now could be the right time to buy a slice of it.

Reckitt Benckiser

The recent quarterly update from global consumer goods company Reckitt Benckiser (LSE: RB) showed that its performance was relatively disappointing. Alongside this, sector peers that operate in similar markets to the company have recently reported challenging trading conditions in key regions. This could lead to further uncertainty for the wider sector in the near term.

As such, Reckitt Benckiser is focusing on improving its operational performance under a refreshed senior management team. This could help to strengthen its financial prospects in the short run, while the growth opportunities provided by countries such as China may sustain a rising share price in the long run.

With the stock trading on a price-to-earnings (P/E) ratio of 19, it could offer good value for money compared to its historic average rating. Therefore, it may not be the cheapest stock in the FTSE 100, and its near-term performance could disappoint, but for long-term investors, it could offer significant appeal. It has the potential to boost your chances of making a million in the coming years.

A top stock with enormous growth potential

Savvy investors like you wont want to miss out on this timely opportunity

Heres your chance to discover exactly what has got our MotleyFoolUK analyst all fired up about this pure-play online business.

Not only does this company enjoy a dominant market-leading position

But its capital-light, highly scalable business model has been helping it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns in fact, in 2019 alone it returned a whopping 151.1m to shareholders in dividends and buybacks!

And heres the really exciting part

We think now could be the perfect time for you to start building your own stake in this exceptional businessespecially given the two potentially lucrative expansion opportunities on the horizon that our analyst has highlighted.

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Looking to outperform the FTSE 100? Here are my top UK small-cap growth stocks for 2020

If your goal is to generate strong investment returns, its worth looking outside large-cap indices such as the FTSE 100 and allocating a little bit of capital to small-cap stocks. This area of the market can produce explosive returns due to the high-growth nature of smaller companies. Just look at one of my top small-cap picks from last year Gamma Communications its up 70% in less than a year.

With that in mind, heres a look at my top three UK small-cap stock picks for 2020.

Artificial intelligence-fused digital marketing

DotDigital Group (LSE: DOTD) is a fast-growing technology company that specialises in artificial intelligence-fused digital marketing solutions. Its key marketing platform, Engagement Cloud, which helps businesses connect with customers, is used by over 70,000 marketers in 156 countries.

DotDigital issued a strong set of full-year results in mid-October. For the year ended 30 June 2019, organic revenue from continuing operations climbed 15% to 42.5m, while adjusted earnings per share jumped 33% to 3.88p. Meanwhile, recurring revenue as a percentage of total revenue climbed to 86%.

Looking ahead, analysts expect revenue and earnings per share of 48.9m and 4p respectively this year. I believe theres a good chance the group will beat these forecasts, given its strong growth in the US and Asia. This could send the share price significantly higher.

At present, DOTD shares trade on a forward-looking P/E ratio of 24.5. I see that valuation as very attractive.

Legal industry disruptor

Next up, Keystone Law (LSE: KEYS). This is an innovative, next-generation law firm that is disrupting the market by enabling lawyers to work from home or their own offices. It currently has over 300 lawyers on board (it believes its addressable market is potentially 47,000 lawyers), and its clients include Tesco, the BBC, and Siemens.

Keystone has grown at a rapid rate over the last few years (three-year revenue growth of 104%) and Im expecting further growth in the years ahead. Directors believe the business model enables rapid scalability and if the special dividend of 8p that was declared in the groups first-half results in September is anything to go by, management is certainly confident about the future.

Turning to the valuation, Keystone shares currently trade on a forward-looking P/E ratio of 37. That is a lofty multiple, however, given the exciting growth prospects here, I dont see it as a deal-breaker.

Autonomous vehicles play

Finally, my last UK small-cap stock pick for 2020 is AB Dynamics (LSE: ABDP). Its a provider of integrated test systems for the global automotive industry. Given that the groups products are integral to the development of new vehicles, I see ABDP as a good way to gain exposure to the self-driving cars market. In the years ahead, manufacturers will need to evaluate their autonomous vehicles extensively under a large number of complex scenarios and ABDP is well placed to benefit.

AB Dynamics issued a great set of full-year results in late November. For the year, revenue climbed 56%, while adjusted diluted earnings per share increased 50%. The company also said that it remains confident that it will continue to deliver further growth in the coming year. However, since the results, the shares have pulled back from above 2,800p to around 2,000p.

I think this pullback has created an attractive entry point. Given the companys strong growth, I think the stocks forward-looking P/E ratio of 30.7 is quite reasonable.

A top stock with enormous growth potential

Savvy investors like you wont want to miss out on this timely opportunity

Heres your chance to discover exactly what has got our MotleyFoolUK analyst all fired up about this pure-play online business.

Not only does this company enjoy a dominant market-leading position

But its capital-light, highly scalable business model has been helping it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns in fact, in 2019 alone it returned a whopping 151.1m to shareholders in dividends and buybacks!

And heres the really exciting part

We think now could be the perfect time for you to start building your own stake in this exceptional businessespecially given the two potentially lucrative expansion opportunities on the horizon that our analyst has highlighted.

Click here to claim your copy of this special report now and well tell you the name of this TopGrowth Stock free of charge!


No savings at 40? I’d buy these 2 FTSE 100 stocks today to retire early

With the cost of living being high, many people will have no retirement savings at age 40. However, since they have many years left until retirement, there is still time to build a nest egg that can provide a generous passive income in older age.

The FTSE 100 may have experienced a strong year in 2019, but there are a wide range of companies that appear to offer good value for money. Here are two prime examples that could be worth buying today. They may help to bring your retirement date a step closer.

Lloyds

The exposure of Lloyds (LSE: LLOY) to the UK economy has contributed to its lacklustre share price performance over recent years. Investors have been cautious about the UKs economic outlook during the Brexit period, and this could persist during 2020.

This presents a potential buying opportunity for long-term investors. Lloyds currently trades on a price-to-earnings (P/E) ratio of 9, which suggests that it offers a wide margin of safety. Furthermore, it has a dividend yield of 5.6%, which is covered twice by net profit. This could mean that it is able to generate strong total returns over the coming years.

Of course, the banks recent updates have shown that trading conditions are uncertain. Business and consumer confidence could be held back by Brexit negotiations in the next year. However, for investors who have a long time horizon, Lloyds could offer recovery potential as it removes additional costs from its business and invests in digital capabilities. As such, now could be the right time to buy it based on a favourable risk/reward ratio.

British Land

Another FTSE 100 share that has been held back by Brexit uncertainty is commercial property owner British Land (LSE: BLND). Along with many other property-related businesses, its shares have been relatively unpopular among investors in recent years. This has led to it trading on a price-to-book (P/B) ratio of just 0.7, which indicates that it could offer a wide margin of safety.

Alongside Brexit uncertainty, British Land is facing a changing operating outlook. Demand for its retail portfolio has declined, due in part to the growing popularity of e-commerce. This has led to a fundamental shift in the companys strategy, with it investing in new growth areas such as build-to-rent residential properties and flexible office space. They could offer greater long-term profit potential than retail units, and may catalyse the companys financial prospects.

The company also offers strong income potential as well as its share price recovery prospects. It has a dividend yield of over 5%, which has historically moved higher at a faster pace than inflation. Therefore, the stock is likely to have appeal for investors with a long time horizon. Its mix of income and value investing potential could improve your chances of building a nest egg and retiring early.

A top stock with enormous growth potential

Savvy investors like you wont want to miss out on this timely opportunity

Heres your chance to discover exactly what has got our MotleyFoolUK analyst all fired up about this pure-play online business.

Not only does this company enjoy a dominant market-leading position

But its capital-light, highly scalable business model has been helping it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns in fact, in 2019 alone it returned a whopping 151.1m to shareholders in dividends and buybacks!

And heres the really exciting part

We think now could be the perfect time for you to start building your own stake in this exceptional businessespecially given the two potentially lucrative expansion opportunities on the horizon that our analyst has highlighted.

Click here to claim your copy of this special report now and well tell you the name of this TopGrowth Stock free of charge!


Femi Ogunshakin Managing Director
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