Although the slow burning fuse of a good dividend yield will fuel your portfolio over the longer run, everybody needs a blast of growth. These four stocks could deliver it, although they have a few issues to get over first. Plus, a bonus income-generating idea…
Viva Aviva
Aviva (LSE: AV) has started sputtering into life, rising 56% over two years, although growth has flattened lately.
This is a company in turnaround mode, but its Q3 interim statement suggest the corner is in sight, with new business up 15% year-on-year to £690m, and strong performance in Europe and Asia.
As emerging markets slow, Aviva’s lack of Asia exposure may now be a plus.
Say Barclays
I’ve been predicting a Barclays (LSE: BARC) fightback all year, and mercifully, it’s finally happening. It’s up more than 7% in the last week, helped by surprisingly lenient leverage ratio rules from the Bank of England.
Its Q3 results beat expectations with a 5% increase in profits before tax to nearly £5bn. Barclays still has far to go to restore its reputation, not to mention its dividend, and its investment banking division looks burnt out.
But really, do you think it won’t get there?
On The Monitise
Mobile payments could be the future, and Monitise (LSE: MONI) is a good way to play it. Again, this company has suffered recent troubles, as profits slipped and Visa exited its investment in the company.
At today’s 31.75p, Monitise has fallen sharply from its 52-week high of 82.75p. But that makes now a tempting entry point.
UBS recently issued a ‘buy’ recommendation, with a target price of 80p. If you’re feeling brave, simply light the blue touch paper
Tesco
Britain’s biggest retailer Tesco (LSE: TSCO) has imploded, messily, before our very eyes. If you believe in investing at the point of maximum pain, here’s your chance.
Early noises suggest new boss Dave Lewis has grasped the scale of the challenge, and selling off its banking arm and Asian businesses could raise the billions Tesco needs to conquer the high street again. Hold on tight.
One for luck…
After recent wobbles, the Santa rally is on. Trading at 13.69 times earnings, the FTSE 100 is hardly overvalued. It has had a troubled year, down 4% so far, but that gives it a nice platform to spring back.
Buying a low-cost index fund such as db x-trackers FTSE 100 UCITS ETFÂ (LSE: XUKX), which charges just 0.09% a year, is a safer way of tapping into today’s stock market’s long-term growth potential.