The FTSE 100 has experienced a strong comeback after its recent market crash. An increasing number of its members are now in positive territory in 2020.
However, many of them continue to offer good value for money and long-term growth potential. As such, they could make a positive impact on your retirement plans through delivering capital growth that enables you to obtain a passive income in older age.
Here are two such companies that could be worth buying today due to their increasingly bright prospects over the coming years.
Passive income stocks: our picks
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Reckitt Benckiser
FTSE 100 consumer goods company Reckitt Benckiser (LSE: RB) has recorded a 12% share price rise since the start of the year. Investor sentiment has been buoyed by its improving sales performance as consumer demand for its hygiene and health products increased rapidly. Its total sales in the first quarter of the year increased by 12.3%.
Certainly, some of those sales were likely due to consumer stockpiling. However, further strong growth across its brand portfolio could take place as the company invests in its online capabilities. This will also help the company optimise its operational performance to become increasingly efficient.
Reckitt Benckiser currently trades on a relatively high valuation. It has a price-to-earnings (P/E) ratio of around 22, which suggests investors are bullish about its outlook. Although there may be less scope for a further upward rerating over the medium term, the company’s prospects in fast-growing emerging economies appears to be high.
As such, there may be cheaper FTSE 100 shares available elsewhere. But the stock’s capacity to deliver resilient growth during an uncertain period for the world economy may mean it’s a relatively attractive investment that helps to bring your retirement date a step closer.
FTSE 100 REIT Segro
Another FTSE 100 share that could produce impressive returns over the coming years is Segro (LSE: SGRO). The real estate investment trust (REIT) could be in a strong position to capitalise on the ongoing trend towards online retailing, since it lets modern warehouses in attractive locations.
It announced this week it has acquired an urban warehouse park in a prime London location for £202.5m. This could provide it with further growth opportunities as the trend towards purchasing goods online for home delivery looks set to continue.
Segro’s share price is currently up around 1% since the start of the year. Although many FTSE 100 shares are significantly down on their 2020 starting prices, and may offer wider margins of safety, the company’s 10% forecast growth rate in earnings for next year suggests it may offer good value for money at present.
As such, now could be the right time to buy a slice of Segro for the long term. It could enable you to generate high returns that boost your retirement prospects.
