3 top LSE shares I’d buy for 2020

first_img 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 has no position in any share mentioned. The Motley Fool UK has recommended Diageo. 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. Enter Your Email Address The London stock exchange is packed with opportunities. For example, I’d be keen to buy shares in the three companies below.Power Solutions Modular power generator provider Aggreko (LSE: AGK) is listed in the FTSE 250 index and the valuation looks attractive, to me. With the share price close to 855p, the forward-looking earnings multiple for 2020 sits just below 14 and the anticipated dividend yield is around 3.3%.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…The directors have done a good job of holding the dividend broadly flat since 2015, despite a general decline in earnings. The good news is that City analysts following the firm predict rising earnings this year and a modest single-digit percentage increase in the dividend. It seems to me that trading could have stabilised after the wind-down experienced by the firm after higher-than-normal demand during the period around the London Olympics in 2012.The share-price chart tells the story, with a big drop in the price since 2012. But there’s a nice, flat consolidation pattern since the beginning of 2018, which encourages me. In November, the company reported steady trading in line with the directors’ expectations, so expect earnings and the dividend to rise from here.Fast-moving consumer goodsThe FTSE 100’s Reckitt Benckiser (LSE: RB) operates in the areas of health, hygiene, post-natal and home products. And generally, consistent cash flow has been driven by the success of the firm’s many popular brands.However, earnings and dividends have been slipping a little lately, and the shares have been trading below the highs set in mid-2017 ever since then. But the operational problems are being addressed by the management team, and I’m optimistic that they will prove to be temporary.Meanwhile, the valuation looks more attractive than it has done for quite a while. A slightly murky outlook can work wonders for finding value among high-quality companies, so we could be seeing a decent opportunity with Reckitt Benckiser right now.With the share price at 6,226p, the forward-looking price-to-earnings ratio is just over 19 for 2020 and the anticipated dividend yield is a little over 2.7%. That’s not a bargain-basement valuation, but I reckon it qualifies as being a fair price for a business with a decent underlying business.Premium alcoholic drinksPremium alcoholic drinks producer Diageo (LSE: DGE) is known for its brands such as Guinness, Baileys, Captain Morgan, Smirnoff, Johnnie Walker, Tanqueray and others. They sell well, customers keep coming back for more, and the company’s cash inflow tends to grow every year.Such attractive characteristics are good for the dividend, which has been going up too. City analysts expect further progress in the current trading year to June 2020 and again the year after that. We are talking about mid-to-high single-digit percentage increases in both earnings and the dividend. Diageo is trading and growing well, just as we have become used to over the years.With the share price at 3,279p, it’s down a little from its highs of last summer, but not by much. Meanwhile, the forward-looking earnings multiple for the trading year to June 2021 is just over 22 and the anticipated dividend yield is around 2.3%. No super bargain on offer here, but this is a great, high-quality business and I’d be tempted to pay up, then hold the shares for the long term. 3 top LSE shares I’d buy for 2020 I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. 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.center_img “This Stock Could Be Like Buying Amazon in 1997” Kevin Godbold | Monday, 20th January, 2020 | More on: AGK DGE RKT Simply click below to discover how you can take advantage of this. See all posts by Kevin Godbold Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img read more

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