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of FTSE 100 It is full of interesting and exciting companies that can provide long-term growth. When the market recovers, I cycle through the index to find stocks I can invest in. Let’s take a closer look.
High income expectations
first, Expert (LSE:EXPN) reiterated its full-year guidance for the three months to June 30 in its report. At the time of writing, the shares were trading at P2,770.
In the same results, the credit reporting company said that its revenue grew by 7%, while full-year revenue is expected to grow between 7% and 9%.
The business is benefiting from a very active property market over the past two years.
however, Ct He downgraded the company to ‘neutral’ in August. He gave two reasons for this move, including a decrease in housing transaction volume. For example, in July, home sales decreased by 20 percent year-on-year.
While this may be a concern in the short term, the housing market may soon pick up again.
Moreover, the business has recorded attractive revenue growth over the past five years. For the years ended March, between 2018 and 2022, earnings per share (EPS) rose from ¢94.4 to ¢124.5. This means that the company has an annual EPS growth rate of 5.7%. I find this consistent and attractive.
11.88% yield!
second, Rio Tinto (LSE:RIO) can give me both growth and income. In the year It is widely known to boast one of the highest dividend payouts in the market, paying $10.40 per share in 2021. This equates to a profit margin of around 11.88%.
Last year, the mining company benefited from higher commodity prices. For example, between 2020 and 2021, pre-tax profit increased from $15.3 billion to $30.8 billion.
More recently, however, the effects of market volatility and a potential recession have been dampened.
Despite this, the demand for base metals, especially copper, will increase in the coming years. Because these components are crucial for environmentally friendly products like electric cars.
Therefore, I think there is a high possibility that commodity prices will rise in the future. This could be good news for Rio Tinto.
The business has been making aggressive efforts to expand into the copper market, with a $2.7 billion bid for a Mongolian copper mine owner. Turquoise Hill Resources.
This bid was unsuccessful, but Rio Tinto acquired the company after raising it to $3.3 billion. This could allow the business to engage in additional copper exploration, thereby supporting long-term production plans.
Overall, both of these companies will undoubtedly face challenges in the short term. But when it comes to investing, I prefer to look beyond the tip of my nose. The opportunities for growth and income in these growing businesses are too great to ignore, especially if and when the market recovers. I will soon add shares of both companies to my portfolio.