Why Aviva plc, Rio Tinto plc And Enterprise Inns plc Should Beat The FTSE 100 Today

Aviva plc (LON: AV), Rio Tinto plc (LON: RIO) and Enterprise Inns plc (LON: ETI) are rising today.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

The FTSE 100 (FTSEINDICES: ^FTSE) ended yesterday with a 93-point fall, but it’s back up 24 points to 6,535 by early afternoon today, with the UK’s big miners getting a boost as the latest economic figures from China came in ahead of expectations. The FTSE’s top-tier index is still down on the week, mind, losing 113 points so far.

The FTSE did get a boost from a few positive earnings updates today. Here are three from the various indices offering upbeat reports:

Aviva

Aviva shares climbed 25p (6.7%) to 396p this morning, after telling us that that new business in its first half was up 17%. The insurer also enjoyed a £776m pre-tax profit, compared to a £624m loss at the same stage last year. Cash flow was up, by 30% to £573m. The company’s turnaround plans look to be bearing fruit, but chief executive Mark Wilson did offer a note of caution, saying “Although these results continue the positive trends of the first quarter, tackling our legacy issues will take time“.

Aviva proposed a dividend of 5.6p per share, down from 10p last year, in line with the rebasing announced at full-year results time. Forecasts for the year suggest a 4.2% yield. With Aviva in the Fool’s Beginners’ Portfolio, I’m happy with today’s tidings.

Rio Tinto

First-half results from Rio Tinto (LSE: RIO), another Beginners’ Portfolio constituent, sent the shares up a modest 29p (1%) to 2,983p, despite underlying earnings dropping 18% to $4.2bn. But a fall was expected, partly due to lower commodities prices, and it was lessened to some extent by record iron ore shipments.

Rio has achieved $1.5bn in cost reductions so far, but the firm told us that it has shelved plans to sell off its Pacific Aluminium division, and will instead reintegrate it into Rio Tinto Alcan.

Enterprise Inns

An update from Enterprise Inns gave an extra boost to a great year’s share-price performance — after a 10.7p (7.6%) lift this morning, the price is now up around 170% over the past 12 months. Like-for-like net income for the pub operator fell 2.7% in the 18 weeks to 3 August, but that was better than the 4.2% fall experienced in the first half — and the trend is apparently reversing, with a like-for-like rise in the first five weeks of the fourth quarter.

Debt is a big issue for the Enterprise, and the company expects net borrowings to be down to £2.5bn by the end of the year. Despite the recent price climb, Enterprise shares are on a P/E, based on current forecasts, of just 7.4.

Finally, if you’re looking for investments that should take you all the way to a comfortable retirement, I recommend the Fool’s special new report detailing five blue-chip shares. They’ll be familiar names to many, and they’ve already provided investors with decades of profits.

But the report will only be available for a limited period, so click here to get your hands on these great ideas — they could set you on the road to long-term riches.

> Alan does not own any shares mentioned in this article.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

More on Investing Articles

Investing Articles

Publish Test

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut…

Read more »

Investing Articles

JP P-Press Update Test

Read more »

Investing Articles

JP Test as Author

Test content.

Read more »

Investing Articles

KM Test Post 2

Read more »

Investing Articles

JP Test PP Status

Test content. Test headline

Read more »

Investing Articles

KM Test Post

This is my content.

Read more »

Investing Articles

JP Tag Test

Read more »

Investing Articles

Testing testing one two three

Sample paragraph here, testing, test duplicate

Read more »