The Best FTSE 100 Stocks To Invest In With £1,000 in Your Pocket

  • Jun 11, 2020 BST
  • Team Kalkine
The Best FTSE 100 Stocks To Invest In With £1,000 in Your Pocket

Summary

  • Blue-chip companies are less risky in comparison to other stocks
  • The FTSE 100 stocks have undergone huge price correction
  • FTSE 100 basket investments can be looked upon for diversification of portfolio
  • Ocado Group Plc stock in the last six-month has delivered 73.30% price return

FTSE 100 or Footsie index represents the hundred largest blue-chip companies in the UK, ranked by market capitalisation. Due to the economic impact of the novel coronavirus, the FTSE 100 index has taken a real hammering along with the rest of the stock market.

The outbreak of the novel coronavirus struck the global markets at the beginning of this year. The stock markets saw severe wealth erosion which left investors high and dry. This triggered panic selling by investors. Most of the markets across the globe bled due to the economic impact of the deadly pandemic. The FTSE 100 was hovering near 7,500 mark in the mid of February. It slipped to below 5,000 mark by the mid of March. Market experts believe that most of the blue-chip companies had undergone a steep price correction and created a bottom in the mid of March when the nation went under lockdown phase. The blue-chip companies have a global footprint, and chances of any significant price manipulations are close to zero. Investing in these stocks is considered more stable and less risky. However, most of these stocks have rallied since then, and some of them have yielded a double-digit return.

The government has been supporting the UK’s economy by offering a lot of stimulus packages. As the nation prepares for easing lockdown, the businesses expect sector-specific guidelines from the government to ensure safe operations. The tech firms were previously in talks with the government to roll out immunity passports, which would help the Britons to return to work safely. All these factors would surely work as a growth catalyst to grease the wheels of the businesses operating in the UK’s economy.

The FTSE 100 basket is considered as the best place for diversification of the portfolio by institutional investors and asset managers. We would discuss some blue-chip stocks based on their last 6-month price return, which includes their pre-Covid status and the present status. These can be called good bargain now with active investors on a shopping spree in recent times. (All data are taken from Thomson Reuters)

  • Ocado Group Plc (LON: OCDO)

United Kingdom-based Ocado Group Plc is an online grocery retailer company. The UK supermarkets, along with Ocado have played a key role in making lockdown successful and contributing to the nation’s economy in these unprecedented times.

The company has shown great spirit to cater to the needs of consumers in the UK, throughout the ongoing COVID-19 crisis. The company recorded 40.4 per cent growth in Second Quarter in the Retail Revenue on the quarter to date basis (2020) compared with the previous year. The group had cash balances of £1.2 billion and a strong balance sheet.

(Source: Thomson Reuters)

Ocado Group has delivered nearly 65.07 per cent price return on the Year to Date basis. In the six-month period, the stock has delivered 73.30 per cent price return. As on June 11, 2020, while writing before the market close, shares of the company were quoting at GBX 1,950. Ocado Group’s market capitalisation stood at £ 14,847.56 million while writing.

  • Scottish Mortgage Investment Trust Plc (LON: SMT)

Incorporated in the United Kingdom, Scottish Mortgage Investment Trust Plc is a closed-end investment company. The banking and financial sector has been up and running in these unprecedented times, well supported by government backed schemes. The company has a resilient business model along with a large pool of liquid assets. The company’s borrowing has risen to modest levels. The company proposed a total dividend of 3.25 pence in the fiscal year 2020, which was up by 4 per cent from the previous year. 

(Source: Thomson Reuters)

Scottish Mortgage Investment Trust has delivered nearly 27.30 per cent price return on the Year to Date basis. In the six-month period, the stock has delivered 44.50 per cent price return. As on June 11, 2020, while writing before the market close, shares of the company were quoting at GBX 737.50. Scottish Mortgage Investment Trust Plc market capitalisation stood at £10,955.64 million while writing.

  • Pennon Group Plc (LON: PNN)

United Kingdom-based Pennon Group Plc is a utility infrastructure group specialising in wastewater management. The Utility company has a resilient business model and has declared a dividend of 43.77 pence for the fiscal year 2020. The Utility business has been up and running in these turbulent times. The company has solid funding of GBP 1.6 billion.

(Source: Thomson Reuters)

Pennon Group Plc has delivered nearly 10.28 per cent price return on the Year to Date basis. In the six-month period, the stock has delivered 23.90 per cent price return. As on June 11, 2020, while writing before the market close, shares of the company were quoting at GBX 1,123. Pennon Group Plc market capitalisation stood at £ 4,766.08 million while writing.

  • Hikma Pharmaceuticals Plc (LON: HIK)

United Kingdom-based Hikma Pharmaceuticals Plc is a pharmaceuticals & biotechnology company. The pharmaceutical sector has been making the headlines as the world is in dire need of the coronavirus vaccine. The company leverages upon its well-diversified product portfolio and high-quality manufacturing facilities to bolster the healthcare system in the UK. 

(Source: Thomson Reuters)

Hikma Pharmaceuticals Plc has delivered nearly 18.54 per cent price return on the Year to Date basis. In the six-month period, the stock has delivered 22.70 per cent price return. As on June 11, 2020, while writing before the market close, shares of the company were quoting at GBX 2,335. Hikma Pharmaceuticals Plc market capitalisation of the company stood at £ 5,721.77 million while writing.

  • London Stock Exchange Group Plc (LON: LSE)

 

United Kingdom-headquartered company London Stock Exchange Group Plc facilitates markets infrastructure for trading a wide variety of securities. The group's revenue performance was decent in the first quarter of the financial year 2020. the group’s total income surged by 13 per cent to GBP 615 million on a year-on-year basis due to higher clearing activity and increased equity trading.

(Source: Thomson Reuters)

London Stock Exchange Group Plc has delivered nearly 4.75 per cent price return on the Year to Date basis. In the six-month period, the stock has delivered 19.40 per cent price return. As on June 11, 2020, while writing before the market close, shares of the company were quoting at GBX 8,220. London Stock Exchange Group Plc market capitalisation of the company stood at £ 28,347.72 million while writing.

 


Disclaimer
The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd, Company Number 12643132. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

 

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