But as a long-term investor, I’m looking at this pullback as a buying opportunity. With that in mind, here’s where I’m seeing value in the FTSE 100 right now.

Attractive long-term growth story

Let’s start with the healthcare sector. Here, I’m seeing value on offer from hip and knee replacement specialist Smith & Nephew (LSE: SN). At present, it’s trading on a forward-looking price-to-earnings (P/E) ratio of 13.

I own Smith & Nephew shares and I plan to buy more soon. I like the fact it’s a relatively ‘defensive’ company with an attractive long-term growth story (the world’s ageing population should drive demand for joint replacements).

I also like the nice dividend yield on offer. At present, the yield here is over 3%.

It’s worth pointing out that, like a lot of companies, Smith & Nephew is facing a few challenges at present due to supply chains and inflation. However, I think a lot of this is already factored into the share price.

Big dividend increase

Moving on to the financial services sector, I’m also seeing value in wealth manager St. James’s Place (LSE: STJ). Its share price has come down from above 1,700p to near 1,000p this year. It also has a P/E ratio of 13.

The reason I’m bullish here is that managing wealth these days is incredibly challenging. High stock market volatility, falling bond prices, tax changes, inflation… these are just some of the challenges we all face. This complexity should boost demand for the company’s services.

Looking beyond this, one big appeal of STJ is the dividend. This year, the company is projected to pay out 54.9p per share, which equates to a yield of around 5.5% at the current share price. It’s worth noting that the group just raised its interim dividend by a whopping 35%.

A risk to consider here is that STJ’s share price tends to fluctuate quite a bit with market volatility. If the FTSE 100 continues falling, returns from this stock could be disappointing.

In the long run however, I think the stock has the potential to generate solid total returns (capital gains and dividends) for me. I’m very tempted to add it to my portfolio.

A FTSE 100 profit machine

Finally, I like the look of online property powerhouse Rightmove (LSE: RMV) right now. The stock (which I already own) is currently trading on a forward-looking P/E ratio of a little under 20.

Now obviously the UK property market could be in for a challenging period due to the fact interest rates are rising so quickly (although this could be offset by the cut to stamp duty). This could have implications for Rightmove in the near term.

However, looking further out, I think this FTSE 100 company will continue to prosper. Britons remain obsessed with property, and Rightmove is the leader in the property portal space with a market share of over 80%.

It’s worth noting that Rightmove is also an extremely profitable company. Last year, its return on capital was about 280%. Over the long run, companies that generate high returns on capital tend to be good investments.

With the stock currently trading below 500p, down from near 800p late last year, I think it’s a good time to buy more shares for my portfolio.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

NextEnergy Solar Fund  

What it does: NextEnergy Solar Fund has invested in more than 100 solar power assets spanning the UK and Italy.

By Royston Wild. Renewable energy stock NextEnergy Solar Fund (LSE: NESF) hasn’t been listed on the London Stock Exchange for a considerable period of time. 

But since its IPO in 2014 it’s shown the hallmarks of a true Dividend Aristocrat. It’s lifted shareholder payments each year since then. Last year it raised the full-year reward 2% year-on-year to 7.16p per share. 

I think it’s a great stock to buy for reliable dividend growth. Electricity is of course an essential commodity today, so demand for power sourced from NextEnergy’s assets should remain strong at all points of the economic cycle. This gives added strength for a business seeking to increase dividends over the long term. 

I think NextEnergy’s focus on green energy gives it the edge over other electricity-producers, too. This is a highly lucrative industry as the transition away from fossil fuels heats up. Though remember that it’s also one where corporate profits can suffer during cloudy weather when energy generation can slump.

Today, this renewable energy income stock carries a 6.4% forward dividend yield.  

Royston Wild does not own shares in NextEnergy Solar Fund. 

Central Asia Metals

What it does: Central Asia Metals is an AIM-listed copper, zinc and lead production and exploration company, with operations in Kazakhstan and North Macedonia

By Paul Summers. With UK inflation poised to hit a staggering 18% next year as energy prices soar (again), I’m attracted to the dividends on offer from miner Central Asia Metals (LSE: CAML). A yield of 8.2% at the time of writing won’t be enough to offset the pain ahead but it certainly isn’t to be sniffed at. What’s more, this payout looks set to be covered twice by profit according to analysts.

Naturally, nothing is a given. Metal prices are notoriously volatile, making the near-term earnings outlook distinctly foggy for any company operating in this space. Nevertheless, the likely huge demand for copper going forward as the renewable energy revolution steps up a gear could prove a boon to this AIM-listed firm.

The income stock also appears very reasonably priced compared to sector peers, at just six times earnings. 

Paul Summers has no position in Central Asia Metals

Lloyds Banking Group

What it does: Lloyds is one of the UK’s largest financial services providers and currently the largest mortgage lender in the country.

By Dylan Hood. On the whole, rising interest rates are bad news for stock markets. However, one sector that tends to be robust during these times are banks. This is because as rates rise, they can charge more on their loans to customers. Although Lloyds (LSE:LLOY) shares are down 11% year to date, I think they could be a solid buy for my portfolio.

Firstly, they have a comfortable 4.8% dividend yield. This is comfortably above the FTSE 100 average yield of 3.9%. With inflation on the rise, reaching 10.1% in July, passive income is a great shield for my portfolio. In addition to this, currently trading at 44p, Lloyds shares have a cheap looking 7.3 price to earnings ratio. This is well below competitors HSBC and NatWest who both trade on P/E ratios of just under 10.

So, with a low valuation, meaty dividend, and favourable lending outlook, I think Lloyds shares could be a great buy for my portfolio for September.

Dylan Hood does not own shares in Lloyds

St. James’s Place

What it does: St. James’s Place is a leading provider of financial planning and wealth management services in the UK.

By Edward Sheldon, CFA. My top income stock for September is St. James’s Place (LSE: STJ). It’s forecast to pay out a dividend of 55p per share for 2022, which equates to a yield of nearly 5% at present.

One reason I’m bullish on St. James’s Place right now is that the financial environment is rather complex. High inflation, rising interest rates, stock market volatility, and falling bond prices all present challenges for those looking to save and invest for their future. This should play into the wealth manager’s hands. In this environment, its advisers can add value for clients, and help them stay on track.

Another reason is that the company is raising its dividend. For the first half of 2022, the company declared a payout of 15.59p per share, up 35% year on year.

It’s worth pointing out that if global stock markets continue to fall, the company’s profits could take a hit.

With the stock currently well below its 52-week highs, however, I think a lot of this risk is already priced in.

Edward Sheldon has no position in St. James’s Place.

Greencoat UK Wind

What it does: Greencoat owns a collection of wind farms scattered across the UK, generating clean electricity to power the nation’s homes.

By Zaven Boyrazian. With gas prices sending energy bills through the roof, alternative renewable energy solutions are rising in demand. Today only around 29% of electricity generated in the UK originates from renewable energy sources. But that’s considerably higher than 5% in 2012.

This continued shift away from fossil fuels has created lucrative opportunities for companies like Greencoat UK Wind (LSE:UKW). The business owns a portfolio of on- and off-shore wind farms that generate clean electricity.

Being a wind energy business, its revenue stream and earnings can be quite lumpy. Not to mention the regulatory energy price caps eliminate any form of pricing power.

But with operating margins well above 90%, any reduction in price caps is unlikely to compromise this business, I feel. And with most of the proceeds returned to shareholders in an inflation-adjusted dividend, Greencoat looks like an excellent income stock to own in my eyes.

Zaven Boyrazian owns shares in Greencoat UK Wind

Legal & General  

What it does: Legal & General is one of the UK’s largest financial and insurance firms with a focus on four key areas. 

By Charlie Keough. My top British income stock for September is Legal & General (LSE: LGEN]. With its share price taking a hit this year, this has pushed the stock’s dividend up to an attractive yield of around 9%.  

What I also like about L&G is the long-term dividend plan it set out back in 2020. This was part of a wider five-year ambitions programme. And within this, it has targeted a cumulative dividend ambition of £5.6bn-£5.9bn by 2024. In its latest update, it highlighted it was on track to achieve this.  

The firm has also managed to grow its cash levels since last year, which gives this dividend programme a platform to build up.  

The business may see investors batten down the hatches in the months ahead. And this will likely dent revenue. 

However, with inflation continuing to rise, I think this source of passive income could prove valuable in the months and years ahead. 

Charlie Keough does not own shares in Legal & General 

Lloyds

What it does: Lloyds is one of Britain’s biggest financial institutions. Its brands include Lloyds itself, Halifax, and Bank of Scotland. It earns the bulk of its revenue from mortgage loans.

By John Choong. According to analysts, inflation is now expected to peak at 18% in January. With interest rates still lagging behind inflation, the Bank of England will have to continue raising rates. Given that Lloyds (LSE: LLOY) earns its income from the difference in the cost of borrowing and lending, I expect its earnings to continue upwards; and with that, its dividends.

Although house prices are expected to decline in the near future, I hold the view that the increase in mortgage rates should offset any decreases in property valuations. Furthermore, with an excellent balance sheet, Lloyds doesn’t need to increase its savings rate to bring in more cash, thus allowing it to increase its profits.

So, with a low price-to-earnings (P/E) ratio of 7, and a price target of £0.64, I think Lloyds shares are an excellent pick as a defensive position for my portfolio. And what’s most lucrative is its dividend yield of 4.8%, which is expected to increase along with its margins.

John Choong has positions in Lloyds.

Persimmon

What it does: Persimmon is a housebuilder focussed on the UK market.

By Christopher Ruane. Some of the yields currently on offer in the London market are hard to get my head around. Take housebuilder Persimmon (LSE: PSN) for example. Its dividend yield is almost 16%. For a FTSE 100 member, that is unusually high.

Clearly many investors doubt that the company can sustain its payout and have pushed the share price down accordingly. Although the housing market still looks fairly strong, there is undoubtedly a risk that higher interest rates and a worsening economy could push down selling prices at some point. Persimmon raised its average selling price in the first half, although volumes slipped. It continues to have a healthily profitable business model.

With its thin cover, the dividend looks vulnerable in a downturn. But even if it was halved, it would still be almost 8%. Recognising the risk, I am tempted to add this income stock to my portfolio.

Christopher Ruane does not own shares in Persimmon.

Forterra

What it does: the company manufactures building products from clay and concrete. These include bricks, blocks, and paving.

By Stephen Wright. I think that Forterra (LSE:FORT) is a really interesting income stock. At current prices, it has a dividend yield of around 4.2%.

The company makes the ubiquitous London Brick, which has been used in around 25% of the UK’s housing. This is significant because it means that Forterra’s products are likely to be used in extension projects on those buildings.

It’s natural to think that bricks are something of a commodity, but this isn’t true. Forterra has shown an ability to increase prices to its customers, which indicates that its products are differentiated from those of its competitors.

I also believe that the stock is cheap. Forterra’s share price implies a price-to-earnings (P/E) ratio of around 10 and the company has more cash than debt. This makes it look to me like a strong business at a good price.

Stephen Wright does not own shares in Forterra.

National Grid

What it does: National Grid is an energy company, operating in the UK and eastern US. It provides both electricity and gas.

By Andrew Woods. The National Grid (LSE:NG) share price has fallen just 3% in the past three months. For the year ended March, the firm paid a dividend of 50.97p per share. At current levels, this constitutes a dividend yield of 4.49%. As such, it’s my income stock for September.

The company reported a 107% rise in pre-tax profit, totalling £3.4bn, for the 12 months to March. Furthermore, its dividend payment was 3.7% greater than in 2021. Much of this was down to higher electricity transmission as energy costs spiralled following the pandemic and the war in Ukraine.

One concern, however, is that profit margins may be tighter in the coming months. This could be due to the higher cost of securing energy sources, like natural gas.

Despite this, the business has operating cash flow of £5.3bn, and this may allow the company to engage in controlled expansion of its operations within the UK and abroad.

Andrew Woods has no position in National Grid.

Vodafone

What it does: Vodafone is a leading European mobile and broadband operator. In Africa, it runs mobile and payment services.

By Roland Head. My top dividend share pick is Vodafone Group (LSE: VOD). This well-known telecoms operator offers a 6.5% dividend yield and an improving outlook.

Vodafone’s latest trading update showed growth in Europe and continued expansion in Africa, where the company now has 186m mobile customers.

Currently, fewer than half of Vodafone’s African customers use mobile data or the group’s M-Pesa mobile money service. However, I expect the number of people using these higher-value services to continue rising, supporting long-term growth.

The main challenge the company faces in Europe is strong competition in mature markets. This has caused growth to slow in recent years.

However, changes are underway to increase network utilisation. Cost savings should also come as Vodafone gradually switches off its 3G services.

In the meantime, profit margins are improving, and cash generation remains good. This should support the dividend. I see Vodafone as a dividend buy in September.

Roland Head does not own shares in Vodafone.

Here, I’m going to highlight two dividend stocks that strike me as great ISA buys for the 2021/22 tax year. I think these stocks could help me generate some nice tax-free passive income in the years ahead.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

A renewable energy stock with a 5%+ yield

The first dividend stock I want to discuss is Renewables Infrastructure Group (LSE: TRIG). It’s a FTSE 250 investment company that owns a portfolio of wind and solar farms across Europe and the UK.

TRIG’s recent full-year results showed that the company is benefiting from the global shift to renewable energy. For the year, profit before tax amounted to £210m versus £100m in 2020. Meanwhile, earnings per ordinary share came in at 10p versus 5.9p a year earlier.

On the back of these results, the company declared a dividend of 6.76p for 2021 (2020: 6.73p), and announced a 2022 dividend target of 6.84p. At the current share price, the forecast 2022 payout equates to a prospective yield of around 5.3%, which is certainly attractive in today’s low-interest-rate environment.

Looking ahead, management was confident that the company can continue generating solid returns for investors. “The decarbonisation agenda remains central to public policy across Europe. Renewables play an essential role in providing affordable and clean electricity. This backdrop continues to ensure a bright outlook for the company,” said TRIG Chair Helen Mahy.

It’s worth pointing out that due to its investment company structure, TRIG sometimes needs to raise capital to fund growth. This can put pressure on the share price because it dilutes existing shareholders’ holdings.

I’m comfortable with this risk, however. I think that in the long run, this company is well placed to deliver attractive total returns.

Strong dividend growth

Another dividend stock I’d snap for my ISA this year is St. James’s Place (LSE: STJ). It’s a leading provider of wealth management services in the UK.

STJ’s recent full-year results for 2021 showed that the business is doing pretty well right now. For the period, underlying cash basic earnings per share amounted to 74.6p versus 49.6p a year earlier. This enabled the group to propose a final dividend of 40.41p per share, which took the full-year dividend to 51.96p versus 38.49p in 2020. At the current share price, that equates to a yield of about 4%.

Encouragingly, CEO Andrew Croft believes demand for the company’s wealth management services is likely to remain strong in the future. “Looking forward there is no doubt in my mind that the demand for face-to-face financial advice remains as strong as ever. In fact, as we emerge from the pandemic, I believe more people will be reassessing their life plans and be more likely to seek out a trusted adviser,” he said. This leads me to believe there’s potential for further dividend growth here.

The key risk with STJ, in my view, is further stock market weakness. This could impact the group’s revenues in the near term.

Overall, however, I’m quite bullish on this dividend payer. With the stock trading on a P/E ratio of about 18, I think it’s a good time to be building a position within my ISA.

A top UK dividend stock

One that strikes me as attractive right now is Tritax Big Box (LSE: BBOX). It’s a FTSE 250-listed real estate investment trust that lets out logistics warehouses to major retailers such as Amazon and Tesco. It currently offers a prospective yield of around 3.1%.

The reason I’m bullish on BBOX is that it looks set to benefit from the growth of the e-commerce industry in the years ahead. In the company’s recent H1 results, BBOX said it was seeing “unprecedented demand for prime logistics space” on the back of UK e-commerce growth and that it’s “well placed to take advantage of the very favourable market conditions.”

One risk to consider here is that the company sometimes needs to raise more capital to support its growth (it did this recently). This can push its share price down in the short term.

I’m comfortable with this risk though. I think the long-term story here is very attractive.

A defensive dividend payer

Another dividend stock I’d buy right now is Sage (LSE: SGE). It’s a technology company that specialises in cloud-based accounting and payroll solutions. The prospective yield here is about 2.5%.

Sage has a lot of appeal from a dividend investing perspective, to my mind. For starters, the company’s quite ‘defensive’ due to the nature of its offering. Its services are a necessity for most businesses and once set up with the software, customers rarely switch to a competitor.

Secondly, it looks set to grow at a healthy rate in the years ahead as businesses undergo digital transformation. For the year ending 30 September 2022, analysts expect revenue growth of 4%.

Sage does face competition from a number of rivals such as Intuit and Xero and this is a risk to consider. If it fails to innovate, its rivals may steal market share. This could impact profits and dividends.

I think this risk is baked into the valuation though. Currently, Sage sports a forward-looking price-to-earnings (P/E) ratio of about 28, which is relatively low for a software company.

3.3% yield

Finally, I like the look of wealth manager St. James’s Place (LSE: STJ) at the moment. It currently offers a prospective dividend yield of about 3.3%.

St. James’s Place appears to have quite a lot of momentum right now. With Britons saving record amounts over lockdown, a ton of money is flowing into wealth management products. In the first half of the year, STJ attracted £9.2bn of net client investments. Meanwhile, it expects gross inflow growth of around 20% year-on-year for the second half of 2021. Looking further out, the group see high demand for its services as the Baby Boomer generation retires. 

One risk here is the threat of financial technology (FinTech). In the future, ‘robo-advisers’ could steal market share. Another risk is a fall in the markets. This would reduce the group’s income.

Overall however, I think this UK dividend stock offers an attractive risk/reward proposition right now.

FTSE 100 stocks 

The first company is the online vehicle marketplace Autotrader (LSE: AUTO). Like many businesses in the UK, last year was a challenging period for the FTSE 100 company. Revenues for the year to the end of March slumped 29%. 

However, it seems as if things could be looking up this year. The demand for second-hand cars is booming. Some reports have even suggested used-car prices are rising so fast, vehicles become worth more the second they leave the forecourt. 

This is excellent news for Autotrader after a tough year. That’s why I think this is one of the best shares to buy now in the blue-chip index. 

Still, despite this potential, the company’s facing increasing competition in the market, which could harm growth. The market for used cars could also go into reverse at any point. 

Even after taking these risks into account, I’d still buy Autotrader for my portfolio. 

The best shares to buy 

As well as Autotrader, I’d also buy FTSE 100 company St. James’s Place (LSE: STJ) for my portfolio. 

The asset and wealth manager is benefiting from increased demand for its services across the UK. Indeed, for the six months to the end of June, the company reported gross inflows of £9.2bn.

The combination of these inflows and rising equity markets pushed group funds under management to £144bn, up from £129bn at the end of December 2020. 

With assets under management and profits rising, management’s reinvesting for growth. It’s increased the number of qualified advisors by 139 this year and is enrolling more in its Academy programmes. 

As St. James’s Place continues to reinvest in its adviser network, I think the company will continue to attract assets. This is why I think the stock’s one of the best shares to buy now in the FTSE 100. As we advance, some challenges it may face include competition and additional regulatory costs, which could impact profit margins. 

Double tailwinds 

The third and final group I’d buy for my FTSE 100 portfolio is Rentokil (LSE: RTO). The pest control company’s currently benefiting from a double tailwind.

The demand for pest control services is rising, and the number of acquisition opportunities is also increasing. In the first half of 2021, the company’s revenues grew 18%, and it completed 24 acquisitions.  

Like St. James’s Place, I think the group’s growth should continue as management reinvests for growth and demand for its services grows. Therefore, as Rentokil’s network expands, I reckon the stock could make the perfect growth investment for my portfolio. 

Risks it may face include higher wage and materials costs, as well as higher interest rates, which could make its acquisitions more expensive. 

A stock for growth and income

St. James’s Place (LSE:STJ) is a UK-based wealth manager. The share price is up 66% over the past year and has kept the momentum going over the past few months. In fact, in the past three months, the share price is up over 10%. This shows me that the post-crash bounce-back still has momentum. Why is this?

For a start, half-year results released earlier this summer showed continued growth in key areas. The one that impressed me the most was gross inflows. This was at £9.2bn, up 27% from the 2020 figure of £7.3bn. Given that last year there was uncertainty initially as to whether investors would panic and pull money out of stocks and mutual funds, this figure is very positive. It allows me to have confidence in the outlook going forward. Higher inflows should translate to higher advisory and investment revenue for the business.

Another reason why I think it’s one of the best UK shares to buy now is that I can hold it for both capital and income growth. After seeing a dividend cut last year, the yield is creeping higher and is currently just above 3%. What the company calls the underlying cash result for H1 2021 was up 65% from the same period last year, leading to an interim dividend of 11.55p per share.

One risk with the stock is that borrowings have been steadily increasing over time. This time last year they stood at £435m, but they’re now at £478m. Given the strong financial performance, I’d like to see borrowings reduced. 

Another one of the best UK shares 

Another company that I’d rate as one of the best UK shares is B&M European Value Retail (LSE:BME). Momentum is with the company, with the share price up 27% over the past year but also up 7% over the past three months.

The company sources and buys products mostly from China, relying on a high sales volume model. In fact, B&M stores sell pretty much anything, with shoppers often finding good deals on bulk purchase items.

The outlook seems good, reflected in a recent upgrade of forecasts in an unexpected trading update. The statement noted that pre-tax profit for H1 through to the end of September would be between £275m and £285m. This contrasts with previous expectations of around £235m. Revenue is broadly flat, but stronger gross profit margins are the reason for the increase.

One risk to buying this UK share was noted in the trading update. The company commented that “trading patterns and strength of customer demand remain highly uncertain for the balance of fiscal 2022”. I agree with this, as UK retail sales have been volatile in recent months. Depending on how Covid-19 plays out into the winter, customer spending could swing one way or the other.

Overall, I think both stocks are some of the best UK shares that I’m considering buying at the moment.

FTSE 100 shares

The first company on my list is marketing group WPP (LSE: WPP). Last year, as companies worldwide slashed advertising spending to save cash in the pandemic, WPP’s sales plunged. The enterprise took evasive action to cut costs and preserve money and, luckily, these efforts are now starting to pay off.

Business activity has returned to 2019 levels a year ahead of management projections. Revenues increased 16.1% on a like-for-like basis in the group’s first half. Operating profit rose to £484m from a loss of £2.8bn last year. Moreover, net debt declined to £1.5bn, down £1.2bn year-on-year. 

With profits surging, management announced a £350m share buyback in the second half and increased the company’s interim dividend by 25%. 

As the economy continues to recover from the pandemic, I think WPP’s sales and profits will continue to recover. That’s why I reckon this is one of the best FTSE 100 shares to buy right now, especially as it seems management is committed to returning additional cash to investors.

Possible risks to the company’s growth include competition in the advertising sector and another wave of virus lockdowns. As in the first set of lockdowns, these could severely impact advertising spending. 

Despite these risks, I’d buy WPP for my portfolio today. 

My shares to buy

The other company on my list of FTSE 100 shares to buy right now is the asset management group St. James’s Place (LSE: STJ). 

Recently, several asset managers have reported that their clientele is getting younger. This reflects two trends, according to analysts. First, the pandemic has inspired a generation of young people to become more interested in finance. And second, the older generation is starting to pass on more wealth. 

I think this transfer could be incredibly beneficial for wealth managers such as St. James’s Place. Indeed, as one of the largest and best-known group’s in the country, it could benefit more than most.

The group reported net asset inflows of £5.5bn in the first half of 2021, increasing funds under management by around 8.6% on an annualised basis. This growth is quite impressive, and it helped the company more than double operating profit for the period. 

Management is also reinvesting profits back into growth. It’s hired 139 new advisors across the group in 2021 so far. It’s also enrolled 277 students in its wealth manager academy programmes. 

Considering all of the above, I think this company has one of the brightest outlooks of all FTSE 100 shares. That’s why I’d buy the stock for my portfolio today. 

However, while I think this is one of the best shares to buy, I am also aware it faces plenty of risks. Key challenges include competition from lower-cost competitors. Additional regulations may also increase the firm’s cost base and weigh on profit margins. And if there is a stock market crash, investors may rush to pull their funds from the group.

These risks may mean the stock isn’t suitable for all investors. Other FTSE 100 shares may be more suitable in this case. 

A top UK share for July

With interim results around the corner I think RELX (LSE: RLX) is a top stock to buy. The FTSE 100 information supplier is scheduled to release half-year results on Thursday, 29 July.

In its last update in April RELX advised that its Scientific, Technical & Medical (or STM), Risk and Legal divisions “have started the year well.” These units account for almost all revenues, the company’s Exhibitions arm accounting for just 5% of the remainder. This means that this UK media share shouldn’t be significantly impacted by a delayed recovery here as Covid-19 restrictions remain in place.

Data and analytics are becoming more and more important to companies as the world becomes increasingly digitalised. I think this makes RELX a great long-term buy. It’s worth recalling that the FTSE 100 share has been extremely busy on the M&A front of late (it spent almost £880m on 11 acquisitions in 2020). While this has the potential to supercharge earnings growth, it also carries huge risks if said acquisitions fail to deliver desired earnings projections and throw up unexpected costs.

City analysts think RELX will report annual earnings growth of 9% in 2021 and 14% in 2022. This does leave the company trading on a chunky forward price-to-earnings (P/E) ratio of 23 times. A reading like this leaves the UK share in danger of a sharp share price reversal if trading conditions worsen.

Another FTSE 100 stock on my radar

St James’s Place (LSE: STJ) is another top FTSE 100 stock whose share price I think could surge next month. The wealth management giant is set to unveil first-half financials on Wednesday, 28 July.

The St James’s Place share price has risen 55% over the past year. It reached fresh record peaks in the aftermath of its last trading update in late May, too. Then it said that “the strong new business activity we experienced in March has continued into the second quarter”. As a consequence of improving market confidence and high savings levels, it said gross inflows between January and June were likely to be around 23% higher year-on-year.

I expect St James’s Place to advise that trading has remained since. And this could lead to further share price gains. However, like RELX, the FTSE 100 business commands a handsome valuation (a forward P/E ratio of 25 times). This could cause a price retracement if news here disappoints. What’s more, trading at the wealth manager could deteriorate if fears over the global economic recovery grow as inflationary concerns rise and the Covid-19 crisis rolls on.

That said, at the moment I think the earnings outlook at St James’s Place still looks mightily encouraging. Indeed, City analysts think annual earnings here will rise 22% and 19% in 2021 and 2022 respectively.

With that in mind, here are three growth stocks I would buy today. 

UK shares to buy

The first company on my list is banknote printer De La Rue (LSE: DLAR).

This company is a turnaround story. It is forking out significant amounts of cash to cut costs, which should drive profit margins higher. It will spend £16m to reduce expenses by £36m at its currency division, and it is also investing heavily to bulk up its authentication business. This division has suffered delayed orders due to Covid-19, but management wants to take sales from £69m to £100m. 

These growth targets are the primary reasons why I would buy the shares as part of my portfolio of growth stocks.

The main challenges the company faces are an enormous pension deficit and a large amount of net debt. Both of these will be a drag on the business for the next few years, but I reckon its growth could offset these headwinds. 

Growth stocks 

I think St. James’s Place (LSE: STJ) is also one of the best UK shares to buy today. I have been watching this company for the past few years, and during this time, it has continually outperformed.

The wealth management firm has gradually grabbed market share from larger competitors, and its customers are clearly happy with the offering it provides.

The company’s latest trading update reported that gross client inflows for the five months to the end of May were around 23% higher than the corresponding period in 2020. 

The firm has been able to grab market share so far, but this may not last. St. James’s is still a small enterprise compared to the likes of investment giants such as Vanguard. Fighting off these larger corporations could be a considerable challenge for the business. If it lets its guard down, the group could lose the battle.

Nonetheless, based on the firm’s potential, I’d buy the equity for my portfolio of growth stocks. 

Growth and income 

The final company on my list of UK shares to buy is Pearson (LSE: PSON). City analysts believe the publishing and education group will report double-digit annual earnings growth over the next few years.

Of course, these are just forecasts at this stage, but I believe they illustrate the opportunity ahead of the business. The company reported overall sales growth of 5% in its first quarter, with its global online learning business leading the charge, registering growth of 25%.

As well as the company’s growth potential, it’s also an attractive income stock with a dividend yield of 2.3% at the time of writing. 

Pearson’s business has suffered significantly throughout the pandemic, which suggests it is at risk of further coronavirus waves. If there is more disruption in the year ahead, the City’s growth projections may turn out to be nothing more than hot air. 

Even after taking this risk into account, I would buy the stock for my portfolio of growth shares right now. 

Sustainable business

First up is St James’s Place (LSE:STJ). One element to making it one of my best shares to buy now is the longevity I think it offers me as an investor. When buying a stock for my ISA, I’m wanting to hold it for years to come. 

St James’s Place is a large UK wealth manager. I think the business model is sustainable, as is the revenue streams. The company makes money from fees charged for investment advice, along with commissions from funds and other investment purchases by clients. 

The business is clearly doing well at the moment, with gross inflows of £14.3bn in 2020. The company now holds a record of assets under management on behalf of clients, at £123.9bn. I think this momentum should continue into 2021, with the size of retail interest in stock markets.

The potential risk here is the longer-term impact of Covid-19. Financial advisers utilize face-to-face meetings to build relationships with clients. Without physical marketing events, client entertainment and other in-person events, the company may find a negative impact on revenue.

Another one of my best shares to buy now

Another firm I’d rank as one of my best shares to buy now is Auto Trader Group (LSE:AUTO). The reason I think it’s something to look at right away is the share price is down 7.5% this year (but up 25% over 12 months). 

The slump can be attributed to the fact that car dealerships have been closed since December, and are reopening on 12 April. Given the marketplace that Auto Trader provides for car buyers and sellers, having sellers limited in their ability to trade doesn’t help.

In a similar way to the property market, I think we could see a lot of pent-up demand come this summer. It’ll be a time when consumers will actually be more active in using their vehicles, or indeed trading them in. Investors may spot this, potentially making Auto Trader the best vehicle-related share to buy for such a move.

Alongside this, Auto Trader has launched a new initiative of a guaranteed part-exchange service. The beta trial of 1,000 dealers was successful, and so will be rolled out shortly. I think this could help to push up car sales on the website, and is another string to the services offered.

One risk is the negative financial impact Covid-19 has had on many people. With uncertainty for 2021, will the pent-up demand fizzle out as consumers decide to simply make do and save the cash? Personally I think not, but I could be wrong here.