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A Shares and Shares ISA is an ideal place to build wealth over time. The keys are consistency, patience, and finding the right funds.
With this in mind, here are two stocks that I have added to my portfolio in the past few days.
FTSE 250 shares
First of all BBGI Global Infrastructure (LSE: BBGI). This is a FTSE 250 an investment company specializing in the ownership and management of infrastructure projects through public-private partnerships.
Its portfolio is made up of 56 properties, including roads, hospitals, and schools across Europe, North America and Australia. In this case, BBGI generates stable income through long-term contracts, which are supported by the government.
This year, the dividend is 8.4p per share, a 6% increase on last year. The forward yield is 6.2%, well above the FTSE 250 average.
While there is no bullet proof dividend, I would say this one is on the safe side of things.
In addition, I think the stock price, which has fallen 22% in the past two years, may bounce back significantly as interest rates fall and infrastructure projects begin to ramp up.
That's not guaranteed, mind you. A resurgence of inflation could quickly put a handbrake on falling interest rates while negatively impacting the value of the trust's portfolio.
However, currently, the trust is trading at a 10% discount to the value of its underlying assets. That's against a five-year average premium of 12.8%.
With a well-supported yield of 6%+, I like the risk-reward ratio here.
US growth stocks
Next, I invested in a very different stock: Uber Technologies (NYSE: UBER). The share price is up 22% year to date through 2024, but I think it could go much higher over the next decade.
The reason is that a ride-hailing and food delivery firm is quickly becoming a money machine. From negative cash flow in 2021, the company's free cash flow is expected to reach $10bn by 2026.
Talk about leveling up!
This is driven by operational savings and the continued global adoption of the Uber app, which is displacing local taxi firms at a rapid clip.
In Q2, total bookings grew 21% year-over-year in constant currency. For Q3, management sees net bookings of $40.2bn-$41.7bn, representing 18%-23% growth on a constant currency basis.
CEO Dara Khosrowshahi commented: “Uber's growth engine continues to roar, delivering our sixth consecutive quarter of trip growth over 20%, and record profits…more people are using the platform, and more often, than ever before..”
For the full year, Wall Street is predicting revenue growth of at least 16%. I find that very impressive given how weak consumer spending is around the world today.
Now, I'm thankful that I'm taking a regulatory risk with Uber, especially related to whether drivers are considered independent contractors or employees. There may be restrictions in some countries.
However, the stock is trading at a price-to-sales multiple of 3.8. It has been much higher than in previous years.
Looking ahead, I think the potential for continued double-digit revenue growth and rising profits make this a top technology stock.
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