Image source: Getty Images
I’m looking for the best stocks to charge my income in 2025. During my search, I found access to the following hot budget stocks from FTSE 100 again FTSE 250.
Assignments are never guaranteed. But if the trader’s predictions are correct, a sum of £15,000 invested equally in all three dividend stocks will provide a secondary profit of £1,320 next year alone.
I am sure that they can bring great and growing benefits over time, for a long time, too. Here’s why I’m considering them for my portfolio.
A ray of sunlight
The outlook for renewable energy stocks like the Foresight Solar Fund has been complicated by Donald Trump’s return to the White House.
His plans to charge the fossil fuel sector could have a negative impact on investor demand for green energy shares starting next year. Potential trade-offs may also present supply chain challenges for key hardware such as solar panels.
That said, I think some of the share price recovery across the sector is now contributing to this risk.
Take the Foresight Solar Fund, for example. Its share price has fallen 10% in the past month. As a result, the company now trades at a low price-to-earnings (P/E) ratio of 9.5 times next year.
On this balance, I think the company – which operates in the UK, Italy, and Australia – deserves a lot of attention. The growing climate crisis means that renewable energy still has a lot of potential to grow regardless of what the US does.
Others have also argued that weak green energy investment stateside will help British and European companies by making it cheaper and easier to get parts.
I also think that, on balance, Foresight Solar remains low risk despite recent political developments. After all, electricity demand remains unaffected by broader economic conditions.
To date, this has provided the fund with stable profits and cash flow, as well as the ability to deliver a strong dividend year after year.
Growth opportunities
Financial services providers face an uncertain outlook in 2025 as the global economy slows. Aviva may be more challenged than others, too, as it focuses on the UK static.
However, I am still tempted to increase what I am holding today. First, I invest based on the company’s long-term earnings potential. And I think Aviva’s is huge, and especially in areas like pensions and annuities as the population is growing rapidly.
I believe the industry giant has the scale and product potential to take full advantage of this opportunity. It has grown its customer base to 19.6m, an increase of 1.2m in just four years.
And I think the current tricky conditions for consumers are baked into their low ratings. Today, Aviva shares trade at a P/E ratio of 9.3 times by 2025.
Finally, I think the business looks well positioned to deliver big returns in 2025 even if earnings disappoint. This is due to its large reserves. The Solvency II ratio here was 195% as of September, almost twice the required level.
A strong balance sheet gives Aviva plenty of room to invest for growth. I think it is one of the best FTSE 100 stocks today.
Source link
