HomeInvesting3 of the best FTSE 100 stocks to consider in May

3 of the best FTSE 100 stocks to consider in May

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With the FTSE 100 tearing to new file highs, now might be a good time for buyers to splash out on UK blue-chip shares.

Listed below are three I believe are worthy of great consideration this month.

Beautiful returns

Up to now 20 years, no present Footsie inventory has offered higher returns than rental gear enterprise Ashtead Group (LSE:AHT).

The agency has constructed itself to turn into a serious trade participant in that point, thanks primarily to a rolling programme of shrewd acquisitions. And it has no intention of dialling again its aggressive development technique. It made 26 extra acquisitions within the 9 months to January. It is a optimistic omen.

Ashtead’s share worth has sunk greater than 7% in lower than every week. It’s fallen as hopes of rate of interest cuts have light, a situation that would drag on near-term earnings development.

Following this decline, I’m contemplating growing my very own stake within the enterprise. The rental gear trade’s extremely fragmented, leaving room for a lot of extra profits-boosting acquisitions. And the long-term outlook for the development trade stays extraordinarily vivid.

10% dividend yield

I additionally just like the look of M&G (LSE:MNG) following a major share worth reversal. It now trades on a ahead price-to-earnings (P/E) ratio of 8.8 occasions.

On prime of this, its dividend yield for this 12 months stands at 10%. This might make it a superb purchase for buyers looking for a market-beating passive revenue.

Like Ashtead, the corporate’s dropped as hopes of rate of interest cuts have light. However this isn’t the one hazard to income. M&G operates in a extremely aggressive trade and has to paddle extraordinarily onerous to succeed.

However there’s additionally so much I like about this UK share. Most of all, I’m eager on its sturdy place in a market with important long-term development potential. I count on earnings right here to rise strongly over the approaching many years as demographic modifications drive demand for financial savings and funding merchandise.

I additionally like M&G attributable to its enhancing steadiness sheet. A Solvency II ratio of 203% provides it scope to proceed paying giant dividends and to put money into the enterprise for future development.

Commodities big Glencore‘s (LSE:GLEN) share worth has soared in 2024, because of rising metallic costs, and particularly copper. With commodity costs tipped to maintain climbing, now might be the time to purchase this Footsie share.

Mining is usually a extremely problematic (and thus expensive) exercise. Which means that earnings can come below extreme strain, even when metallic costs enhance.

Happily, Glencore additionally has a sprawling buying and selling arm which helps to mitigate this threat. In reality, this unit’s thriving for the time being. Earnings listed here are tipped to hit the upper finish of forecasts in 2024, the corporate introduced this week, at between $3bn and $3.5bn.

I’m assured that proudly owning Glencore shares may yield glorious long-term returns. Developments like decarbonisation, urbanisation, and the AI revolution are tipped to supercharge commodities demand within the coming many years.


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