Looking for UK stocks to buy? I’d start with these FTSE 100 shares
The Motley Fool
Published Jul 21, 2020 13:24
Updated Jul 21, 2020 13:40
Looking for UK stocks to buy? I’d start with these FTSE 100 shares
Investors looking for UK stocks to buy today have plenty of options. Some of the biggest and best companies in the world are listed on the London market. These stocks, like the two firms profiled below, may produce high returns for investors in the years ahead.
UK stocks to buy right now Hikma Pharmaceuticals (LSE: LON:HIK) is one of the best pharmaceutical businesses in the world. The company’s prominence in the global sector makes it one of the best UK stocks for long-term investors.
The business specialises in producing and developing low-cost treatments. These so-called generic versions of popular drugs are increasingly in demand because they cost significantly less than branded versions.
In a world where demand for healthcare is only growing, the cost of providing treatment is becoming an increasingly important consideration for many healthcare providers.
This growing demand, coupled with Hikma’s treatment pipeline, should help the business grow for many years to come. This suggests that it may be one of the most secure UK stocks to buy today. It has also become an income champion.
Over the past six years, the company has doubled its annual dividend. The current yield stands at 1.6%. If payout growth continues, as it has done for the past six years, investors buying the stock today could see a yield on their investment of 4.8% by 2025, and 11% by 2030.
As such, if you’re looking for the best growth and income UK stocks to buy today, it may be worth considering Hikma for your portfolio.
Sage Group Sage Group (LSE: LON:SGE) also stands out as one of the best UK stocks to buy right now. The company is fast becoming a global leader in accountancy software.
It has invested significant amounts of money in providing services through the cloud, which has increased the group’s customer base. This also gives the company a steady monthly income stream from customer subscriptions.
Sage is one of the few UK stocks that offers a straightforward way to invest in the tech scene. It’s highly cash generative with a diversified global customer base, and room for some significant expansion in the years ahead.
Even though the company is competing with several other providers in the sector, Sage is one of the most established. This should give the group a strong competitive advantage.
As it can be quite costly if accounts are filed incorrectly, customers are unlikely to go with an untrusted provider just to keep costs low. That’s where Sage excels against the competition.
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Therefore, the company may be one of the best UK stocks to buy today. It’s a world leader with a long runway for growth in front of it. What’s more, shares in the tech group currently support a dividend yield of 2.5%.
That implies investors will be paid a steady income as Sage’s operations grow.
The post Looking for UK stocks to buy? I’d start with these FTSE 100 shares appeared first on The Motley Fool UK.
Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Hikma Pharmaceuticals and Sage 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.
Motley Fool UK 2020
First published on The Motley Fool
Written By: The Motley Fool
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