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Like many investors, I keep a buy list. Here is a list of stocks that I plan to invest in if I have capital ready to work. Here are two FTSE 100 stocks that are above now.
Innovation in sales
For many decades past, Scottish Mortgage Investment Trust (LSE: SMT) shares only look up. In January 2011, shares were at 140p. The highest value of the stock was 1500 in November 2021. Today, it is down 51% from that high price.
As a long-term investor in Scottish Mortgage shares, I must have felt the pain of losing half its value. So why would I want to add to my holdings now?
Well, as a reminder, the mission of the trust is “recognize the companies and entrepreneurs building our economic future. Companies set out to change the world“.
History of the Scottish Mortgage Investment Trust
But many investors are now suddenly not interested in the company can change the world in five to 10 years. This is understandable given the uncertainty surrounding inflation, the global economy, and the war in Ukraine. This risk to the stock price still exists.
But I believe that over the long term, the portfolio remains well positioned to outperform. One interesting catch is the SpaceX rocket pioneer. These are private companies that cannot buy shares directly. But through Scottish Mortgage, I got some exposure to SpaceX and the mega trend of space exploration.
Boringly brilliant
With this next choice, I will go from a fun company to change the world to a boring and reliable one. And that Bunzl (LSE: BNZL). The company sources, assembles, and ships a variety of products every day for businesses. This has been done since 1940.
The products are highly diversified across different sectors and geographies.
This stock has been a quiet winner for a long time. And it has been held also very recently.
Bunzl stock performance
| The horizon of time | Stock performance (excluding dividends) |
| 1 year | 7% |
| 5 years | 36% |
| 10 years | 160% |
| 15 years | 358% |
| 20 years | 634% |
Why did it take so long? Yes, this is a company with a compounding growth strategy. That has seen income grow at 10% per year for 25 years.
The level of consistency and profitability is incredible. Moving forward, I think Bunzl is in a position to pass on inflationary costs to customers, preserving their profit margin in the process.
And it recently announced four new acquisitions, part of its long-term strategy to make bolt-on acquisitions to keep growing. I expect the company to use its strong balance sheet and cash flow to fund further acquisitions.
In addition, the stock has a dividend yield of 2.1%, which has been increasing for almost three decades! Dividend cap is usually a healthy 2.5 times or more.
Although I expect Bunzl to grow its dividend, another outbreak of Covid could damage the payout. It reduced its final dividend in fiscal 2019 due to the pandemic, although it made an additional interim dividend the following year.
Overall, I’m attracted to the stock’s defensive qualities and potential for long-term dividend growth.
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