Shares to buy: a FTSE 100 stock for my ISA

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images But I’d also consider these: Our 6 ‘Best Buys Now’ Shares Access this special “Green Industrial Revolution” presentation now See all posts by Kevin Godbold Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. It was released in November 2020, and make no mistake:It’s happening.The UK Government’s 10-point plan for a new “Green Industrial Revolution.”PriceWaterhouse Coopers believes this trend will cost £400billion……That’s just here in Britain over the next 10 years.Worldwide, the Green Industrial Revolution could be worth TRILLIONS.It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Shares to buy: a FTSE 100 stock for my ISA Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Kevin Godbold | Thursday, 10th June, 2021 | More on: SKG Enter Your Email Address Our 5 Top Shares for the New “Green Industrial Revolution” When it comes to searching for shares to buy, it’s worth remembering that a Stocks and Shares ISA is a good place to hold them for the long term. ISAs have flexibility and tax advantages. There are no restrictions about when I can draw money out. And my ISA serves as a useful addition to my retirement planning.High-quality businessesI’m always searching for shares to buy that can be held for the long term. My plan involves ploughing all returns back into my investments. For example, there could be dividends and capital gains crystallised when I sell shares. Sometimes cash returns arrive in my ISA account because of various corporate actions by the underlying company. And I reinvest it all in pursuit of compounding my gains.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But with long-term investments, compounding can happen in a second way within the underlying business. When companies make money, they can reinvest some of it into their businesses to drive growth. Earnings can then rise and the process repeats. When growth like that happens, the share price and shareholder dividends often rise to reflect those compounding gains in the enterprise. However, nothing is guaranteed and companies can perform poorly too, causing dividends and share prices to fall and me to lose money with my ISA shares.Nevertheless, I’m keen to embrace the risks that come with stocks because the potential gains are often higher than the returns available from holding cash savings. To me, it’s all about balancing risk against potential rewards. And I try to minimise the possibility of losing money on shares in my ISA by focusing on the quality of a company’s operations.For example, the FTSE 100‘s Smurfit Kappa (LSE: SKG) is achieving double-digit percentage returns against equity and invested capital. And the operating margin is running just above 10%.Why I think Smurfit Kappa is share to buyThe paper-based packaging provider has seen stable demand for its products in recent years. And part of that has come from serving the fast-moving consumer goods and parcel delivery sectors. In today’s digital retail world, market trends in the sector favour the business. And Smurfit has been working on reinvesting in growth projects to boost future earnings.City analysts expect earnings to increase by almost 5% this year and more than 15% in 2022. meanwhile, with the share price near 3,791p, the forward-looking earnings multiple is around 15 for next year. And the anticipated dividend yield is almost 2.9%. I think the valuation is undemanding for a thriving business with growth on the agenda.At the end of April, Smurfit Kappa reported a “strong” first-quarter performance. And the directors expect “accelerated” revenue and earnings growth through the rest of 2021. Of course, nothing is guaranteed, and if the company doesn’t meet earnings expectations, the shares could fall in value.And one of the risks is Smurfit Kappa isn’t the only packaging provider in the market. There are many. So competition is at a high level. Nevertheless, the company is a big player with worldwide operations and a strong trading and financial record. I’d embrace the risks and buy the shares to hold for at least 10 years and probably longer as the company’s growth strategy plays out.last_img read more