Some Stocks to Ponder on in The Current Market for Early Retirement

Summary

• Several stocks with good fundamentals are now available cheaply on the LSE to build either an income or a growth portfolio.
• There are various stocks which provide regular income and represent high growth potential in the mid to long run
• Glaxo SmithKline Plc one of the largest in the UK packs significant growth potential due to its presence in important developing markets

Retirement planning is a process whereby one makes necessary provision and investments so that by the time he retires, he has enough disposable income coming to him monthly to cover all his needs. It is also quite possible that if someone puts in the adequate amount of research and implement this process accurately; he may be able to save a substantial amount early enough in his life so that he may take a retirement much before it is due. It is also a very good time to buy into a dividend distribution fund. The units of these funds are now available for very low prices because of the deteriorated market conditions. However, when the market conditions improve, investors stand the change of receiving a very high yield. Buying into stocks and funds at this time also helps him lower the cost of his investments, as costs surrounding the management of funds and other related expenditures would also be lower compared to better times.

Today we are going to discuss five stocks which are some of the strongest in the London Stock Exchange provide regular income and also represent high growth potential in the mid to long run. An investor considering the building of a retirement fund will do good if he selectively includes some of these in his portfolio.

Top five companies having long term growth and dividend potential

1. Glaxo SmithKline Plc - Glaxo SmithKline Plc (LON: GSK) is a British multinational pharmaceutical major. The company produces a long list of prescription therapeutics, medicines, as well as vaccines. Its pharmaceutical offerings cover across the medicine value chain, including important ailment types like anti-infective ailments, skin conditions, diabetes, cardiovascular disorders, respiratory ailments as well as gynaecology. The company is also the manufacturer and supplier of a range of vaccines for the prevention of ailments like hepatitis A, hepatitis B, Hemophilus influenza, diphtheria, pertussis, chickenpox, tetanus, rotavirus, cervical cancer, and streptococcus pneumonia, among others.

The company is a good dividend payer and has a consistent record of rewarding its shareholders. The company, one of the largest in the UK, packs significant growth potential due to its presence in important developing markets. The stocks of the company can be targeted for both incomes as well as growth portfolios.

2. M&G Plc- (LON:MNG): M&G Plc is a United Kingdom domiciled investment management company which manages multiple classes of assets in the United Kingdom as well as abroad, ranging from fixed income, real estate as well as equities.

It also had a long and consistent history of rewarding its investors with dividends, even paying a better rate of dividend in the current year despite the underlying economic situation.

The company has very strong fundamental growth potential in the near to mid-term future as a number of significant opportunities will arise after the current phase of uncertainty in the markets subside. The stocks of the company can be considered for income as well as growth portfolios.

3. Phoenix Group Holdings– (LON:PHNX): Phoenix Group Holdings is the United Kingdom-based, one of the largest insurance services providing company. The company is actually a holding entity of four regulated companies, namely, Phoenix Ireland, AXA Wealth, Phoenix life and Abbey Life.

The company has a very strong financial position, and despite the difficult state of economic activities in the country, it did not take any loans, or any other financial assistance rolled out by the government nor did it put any of its employees under the job retention scheme, everybody received their salaries in full during the period. Despite the continuing challenging business environment, the company expects a cash generation of £800 million to £900 million for the full year.

The company is underpinning on its strong business model has rewarded its investors consistently making it considerable for both an income as well as growth portfolio.

4. AstraZeneca Plc – (LON:AZN) – AstraZeneca Plc is poised to make a big leap with its COVID- 19 vaccine which will hit the markets later this year. The company has a commercial deal with Jenner institute of the Oxford University for this vaccine and would likely be the first to hit the market among a number of other contenders. The company has indicated that it will manufacture millions of doses of the vaccine at the earliest and supply it to different parts of the world, for which it has entered into forwarding agreements with a number of vaccine manufacturers.

The company may see a good growth in the next couple of years, that could make it good for both income as well as a growth option.

5. Justeat takeaway.com – (LON:JET) Just Eat Takeaway.com is one of the largest food delivery companies in the world that has done extremely well during the lockdown in the UK. Given the continuing state of the pandemic in the UK and other countries it serves and is well poised to maintain its good performance for the full year. The company is dually listed on the Euronext in Amsterdam and the London Stock Exchange where its stock is also a part of the FTSE 100 index. The company had in the month of June informed about its takeover of Grubhub, a food delivery company in the United States of America, having a significant user base in that country. The move is being seen favourably by the market, and the shares of the company have been rising ever since. The shares of the company can be a good hold both from an income perspective as well as for growth perspective.

Conclusion

The above five stocks are only a few prominent stocks on the London stock exchange, which are now available at prices which are far below where they should be. There are several other stocks also which fit well in the above description and can be looked for planning an early retirement.