The FTSE 100 can be a great place to look for investment opportunities. The index is composed of the largest UK companies. It contains companies that have proven themselves over time and produce consistent, steady profits.
Within the index, though, there’s a really diverse range of companies. I’ve found three very different types of stocks that I’m looking at buying for my portfolio in May.
The first is a high-quality growth stock. The second is a steady company that pays a strong dividend. And the third is a cheap value play.
Growth
The growth stock that I’m looking at buying in May is Rightmove (LSE:RMV). The company is the largest UK property platform and its size gives it a huge advantage over its competitors.
Rightmove’s revenues have surged back after a quiet 2020 during the pandemic and it’s an extremely efficient business when it comes to keeping costs low. The stock isn’t cheap and there’s a risk that comes from paying a high multiple for a good business. However, this is a risk I’m looking at taking to add a quality name to my portfolio in May.
Dividend
I’m also looking at buying shares in Legal & General (LSE:LGEN) in May. The company is about as steady and established as they come and it has paid its dividend consistently over time.
The share price has been coming down quite a bit lately and is approaching levels that I think are attractive. Sometimes a falling share price can be a sign that investors have noticed something wrong with the business. But I don’t think that’s the case with Legal & General. With a 7% yield, I’m inclined to think the risk is worth it.
Value
The third and final stock that I’m considering for May is Sainsbury (LSE:SBRY). This is the least obvious of the three stocks, but I think there might be an interesting value proposition here.
Sainsbury’s shares trade at a price that implies a total value of around £5.5bn for the entire company. On its balance sheet, however, Sainsbury has property and machinery with a value of £13.3bn. There are other things to consider like total debt of around £6.8bn, but I think that Sainsbury shares look cheap given its asset base.Â
Summary
There are stocks in the FTSE 100 to suit any style of investor. I’ve found three that I’m thinking of buying in May.
I think that Rightmove has a terrific business model. Legal & General seems to me to be a company that will distribute a steady dividend to its shareholders for a long time. And Sainsbury’s appears to be a stock that is trading at an extremely low price given the assets that the company owns.