After a bumpy few months, there’s a danger the Lloyds (LSE: LLOY) share price could dip below 50p for the first time since last March. 

As a long-term investor in the FTSE 100 bank, I hope that doesn’t happen. Although if it does, it won’t change the investment case, in my eyes. I still think this is still a solid long-term hold for dividend income and share price growth.

The Lloyds dividend looks pretty secure, with a trailing yield of 5.2%. That’s now forecast to hit 6.4%, still nicely covered twice by earnings.

Can this FTSE 100 bank bounce back?

Unfortunately, the share price has been volatile. It’s up 12% over the last 12 months, but over five years it’s down 12%. And the bumpiness looks to continue.

There’s lots to like about Lloyds. Its shares are incredibly cheap, trading at just 6.96 times trailing earnings. Like every bank, it’s also benefited from rising interest rates, which allows them to widen net interest margins. With rates now forecast to stay higher for longer, those margins should remain wide.

There are downsides to higher rates though. They make mortgages costlier, hitting demand. That’s a blow for Lloyds, which is the UK’s biggest lender. Debt impairments could rise as borrowers struggle.

Higher interest rates also give investors a higher rate of income from cash and bonds, without risking their capital. This makes dividend stocks like Lloyds less attractive.

Everyone is a bit gloomy about the UK economy. That’s a problem for Lloyds, which is exposed to its fortunes due to its narrow focus on domestic retail and commercial banking. If we slip into recession this will squeeze consumer spending, business confidence, demand for loans, credit quality and profitability.

Lloyds is working hard to boost its efficiency via cost-cutting initiatives such as branch closures, and its digital transformation programme. Sceptics question whether the big FTSE banks can adapt to structural changes such as the rise of fintech, although they’ve seen off the challenger bank threat pretty handily.

I’m expecting a bumpy ride from this stock

The 19 analysts offering one-year forecasts for Lloyds have produced a median share price target of almost 65p. That would mark an increase of more than 20% from today’s 53p. Combined with that yield, this would give me a total return of more than 25%. We’ll see.

I’m a bit gloomy about the UK outlook right now. There’s another shadow hanging over Lloyds, in the shape of the motor finance mis-selling scandal. We don’t know how that could pan out, but broker RBC has warned the bill could hit £3.9bn. Lloyds has only set aside £450m. Let’s hope RBC’s wrong.

The Lloyds share price has a lot of room for growth and could hit 65p this year. But if the economy slides and motor finance turns into a new PPI, it could just as easily slump to 45p.

I’ve given up predicting the Lloyd share price. I’m just going to hold on to what I’ve got, and reinvest every dividend I get. Over the longer run, I think it’ll make me a lot richer. Albeit slowly and bumpily.

Trying to pick through all the odd and improbably passive income ideas can be difficult. Rather than try something risky, savvy investors prefer to focus on a tried-and-tested approach.

For decades, British investors have sworn by the regular income that leading dividend stocks deliver. With the FTSE 100 average yield at around 3.5%, the index promises more lucrative dividend income than its US peers.

With a Stocks and Shares ISA, UK residents can invest up to £20k a year with no tax levied on the capital gains. These self-directed investment accounts allow the holder to pick from a wide variety of assets, including stocks, commodities and investment trusts.  

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Growing over time

By picking a mix of high-yield stocks, many UK investors have managed to achieve an average yield of around 6%. That would pay only £1,200 a year in dividends on £20k. 

By investing the full £20k each year, within eight years, the pot would reach $231,000 (with dividends reinvested). That would pay £12,000 a year in dividends, or £1,000 a month.

Of course, £20k’s a lot to save every year. But even at half that amount (£10k a year) the same dividend income could be achieved in 12 years.

Choosing stocks

A general rule of thumb dictates that a mix of around 10 stocks provides sufficient diversity in a portfolio. Rather than simply pick the highest-yielding shares, many investors also include some defensive shares or index trackers.

These can help keep a portfolio stable during volatile economic periods. Some defensive stocks also pay a decent dividend, for example, Unilever, with a 3.3% yield, or GSK, at 4.5%.

Naturally, these lower-yielding shares would need to be offset by higher ones to achieve a good average. But very high yields can be indicative of financial problems so it’s critical to dig deeper.

One example

That’s why I like Aviva (LSE: AV). It may have a lower yield than other UK insurers but has a long payment history. I also think it achieves a good balance of allocating funds between the business and dividends.

Looking back, the company has cut dividends several times. This may look bad until you consider how it has used these savings to improve operations. That may be why the share price is up 17.4% in the past five years. Many other UK insurance companies are negative over the same period.

Of course, that doesn’t mean it’s without risk. Like most insurers, Aviva invests in fixed-income securities which are impacted by interest rates. If interest rates fall, it could hurt the company’s bottom line. In the highly competitive UK insurance landscape, it can’t risk losing market share failing to impress customers.

But I think it looks to be in a good position. It surprised analysts in its 2024 first-half results, with earnings coming in 10% higher than expectations. Revenue is now expected to exceed £39bn for the year, considerably higher than the £27.4bn achieved in 2023.

I hold the shares as part of my income portfolio and will continue to drip-feed the investment throughout 2025.

Over the long term, Greggs (LSE: GRG) shares have been a phenomenal investment. Over the last decade, for example, they’ve nearly tripled in price (and paid dividends).

Recently however, the shares have experienced some weakness. An investment in them six months ago would now mean sitting on quite a large loss.

The shares have tanked

On 12 July 2024, Greggs shares closed at 2,902p. Let’s say that an investor bought £5,000 worth of shares at that price. That would have got them 172 shares. The total outlay (ignoring trading commissions) would have been around £4,991.

For a while there, they would have been pretty happy as over the next few months, Greggs’ share price rose. On 20 September, it hit 3,250p, meaning the investor would have been sitting on a gain of 12%. In monetary terms, they would have been up roughly £600. That would have been a great result in a little over two months.

Since then however, Gregg’s share price has fallen sharply. On Friday (10 January), it closed at 2,082p – 28% lower than the closing price on 12 July. This means the investor’s capital would now be worth just £3,581. In other words, they’d be sitting on a capital loss of about £1,410.

It’s worth pointing out that the investor would have received a dividend payment over the period. This would have only been 19p per share though. Given that they held 172 shares, that equates to a payment of just £32.68. So it wouldn’t have made much of a difference.

The importance of diversification

For me, these calculations really highlight the importance of portfolio diversification when investing in stocks. Greggs isn’t a bad business. In fact, history shows it’s quite good (and could be worth considering as a long-term investment).

But every business can experience a slow down in growth at times. And that’s what has happened here recently.

For the fourth quarter of 2024, Greggs posted underlying sales growth of just 2.5%. That was well below the level of 5% it recorded in the previous quarter, suggesting that appetite for its famous steak bakes and sausage rolls has declined.

Given that the shares were priced for growth with a relatively high valuation (a price-to-earnings ratio in the 20s), this slowdown’s had a major impact on the share price. Last week, the shares fell more than 10% in a day.

Now, if the investor owned 20 different stocks, the share price weakness here since 20 September may not be a big issue. Their portfolio may have still performed reasonably well as global markets have risen over this period.

But if they only held a handful of stocks (up to five different companies), the share price collapse could have had a substantial negative impact on their returns. With a small portfolio, a big loss on one stock can send the whole portfolio down.

Legal & General (LSE: LGEN) shares have had a rocky start to 2025, but this turbulence isn’t due to company performance.

The FTSE 100 insurer’s latest market update on 4 December was positive, with the board confirming it was “on track to deliver mid-single-digit growth in operating profit for FY24”. It also projected a 6-9% compound annual growth rate (CAGR) in core operating earnings per share through to 2027.

The shares jumped 5% on the day, prompting me to write, a little breathlessly: “I love my Legal & General shares even more after today’s exciting update.”

However, the shares have since returned to prior levels as investors face the reality of persistent inflation. Markets anticipated six interest rate cuts in 2024 but saw only two. Analysts expect just one or two cuts in 2025, as Donald Trump’s tax cuts and trade tariffs may drive inflation higher.

Can this UK income stock offer growth too?

Higher interest rates hit dividend stocks like Legal & General by boosting the yields on lower risk asset classes such as bonds and cash.

Despite this, Legal & General remains a rock solid blue-chip with loyal customers, rising revenues, and a significant new opportunity in the bulk annuity market. The company isn’t about to disappear, taking investors’ money with it. But that doesn’t stop the shares from being volatile in the shorter run.

Over the last year, the Legal & General share price has dropped 12% and is down 28% over five years. While the bumper dividend yield of more than 9% cushions the blow, it’s still disappointing. I expect the shares to rebound when rates eventually fall, though that might take longer than I hoped in December.

In the meantime, investors benefit from a fabulous trailing dividend yield of 9.3%. That’s now forecast to climb to 9.8% this year. Although it’s only covered 1.1 times by earnings when I’d ideally prefer cover of two, it appears safe. The board anticipates generating enough cash to maintain and slightly increase dividends. It forecasts cumulative Solvency II capital generation of £5bn-£6bn by 2027.

All this and buybacks too!

There’s even talk of returning more capital to shareholders via a potential share buyback in March, though nothing’s guaranteed. Investing £10,000 in Legal & General today could deliver £980 in annual income, with any share price growth as an added bonus.

Will this materialise? The 17 analysts offering one-year share price forecasts predict a median target of 262p. That implies a 20% rise from today’s 219p. Combined with the yield, this could deliver a total return of nearly 30%. Time will tell.

Nine of the 18 analysts following Legal & General rate it a Strong Buy, while only one suggests selling. Yet risks remain. The shares trade at an elevated 29.87 times earnings, and the competitive bulk annuity market poses challenges. Plenty of insurers are targeting the same opportunity. There’s also the risk of actuarial miscalculations wiping out narrow margins.

Additionally, personal lifetime annuity sales are likely to dip when interest rates fall. That could offset some of the benefits of lower rates.

With a long-term perspective, I see Legal & General as a brilliant buy-and-hold prospect for me and one for other investors to consider. I’m reinvesting all the dividends I receive at today’s lower price, while waiting for market conditions to swing back in its favour.

In December last year, Tesco (LSE:TSCO) shares hit their highest level since 2014. Less than a month on, the stock has struggled to push higher and has actually fallen slightly. Despite the 21% rally over the past year that took the share price to those decade highs, some investors are concluding that the party might be over.

Impact from the economy

One reason being flagged up is the inflection point that we’re at in the UK economy right now. What I mean by this is that over the course of this year, we could head in either direction. We could get a spark to provide a strong year of growth. Or if inflation kicks higher and interest rates don’t drop, we could even head to another recession.

If we get a boom period, Tesco could suffer as consumers decide to ditch the more basic goods and shop for groceries and similar products from higher-end stores. Yet if we get a recession, Tesco shoppers may cut back on what they spend and try and shop around for the best deals. Either way, Tesco revenue could be negatively impacted.

Another point is that in the last three months through to the end of December, Tesco grew supermarket market share to 28.5%. This is the highest since 2016. Even though this is one factor that has fuelled the rally over the past year, it might make some new investors cautious about buying now. Can Tesco really gain more market share in the coming years? Or is it more likely that competitors will start to chip away at this share, causing Tesco to lose ground instead.

Reasons to be positive

On the other hand, there are still reasons to believe that the best days for the business are still ahead. The Q3 and Christmas trading statement was very positive. The 19-week period showed 3.1% sales growth versus the same period last year.

Further, if inflation in the UK remains low and falls back to the target level of 2%, this would further ease the squeeze on profit margins. Tesco is sensitive to inflation due to the impact it has on raw materials. It also operates on small profit margins. So even a modest fall in inflation could spell an increase in profitability for the coming year.

Finally, even though the stock is at such high levels, it’s not massively overvalued. The price-to-earnings ratio sits at 15.5, almost exactly the average figure for the FTSE 100. Therefore, I wouldn’t say it’s cheap but at the same time it’s not flashing red sirens at me based purely on the valuation.

The bottom line

I disagree with the notion that Tesco shares have finished their glory days. It’s true that I won’t be investing right now as I don’t think the stock will rally massively this year. But at the same time I don’t see a major risk that’s going to cause a share price crash.

Shell’s (LSE: SHEL) share price is down 11% from its 13 May one-year traded high of £29.56. The fall echoes a similar decline in the benchmark Brent oil price over the same period.

I think this bearish performance is down to three factors. However, none of them are necessarily set to endure, in my view.

This means the currently reduced price of Shell’s shares may present me with a tremendous bargain-buying opportunity.

Why is the stock down?

I think the first reason for the fall in Shell’s share price and the oil price is simple supply and demand economics. Despite supply cuts from oil cartel OPEC, demand from the world’s biggest oil buyer – China – is down from historical averages.

However, as a former investment bank trader, I know that all markets’ supply and demand balance shifts constantly. I expect the oil market’s balance will tilt again, especially as reduced investment due to the energy transition hits supply.

The second reason behind the declines is the recent lowering of geopolitical tensions in the oil-rich Middle East. That said, I do not believe that Israel’s attacks against Iran’s proxies will continue to go unanswered. I also believe the situation in Syria after the removal of Bashar al-Assad as president looks extremely volatile.

And the final reason for the falls is President-elect Donald Trump’s promise to increase oil drilling in the US. This may well mean a lower price per barrel of oil. But his promise to speed up the approvals process for new projects should also means greater profits can be made by drilling more.

How undervalued are the shares?

I always begin my assessment of a stock’s value by comparing its pricing with competitor stocks on key measures.

For example, Shell trades on the key price-to-earnings ratio at just 12.8 compared to a peer average of 14.9. So, it looks a bargain on this basis.

The same is true on the price-to-book and price-to-sales ratios. On the former, Shell trades at 1.1 against a competitor average of 2.6. And on the latter, it is at 0.7 compared to a 2.2 peer average.

The next part of my evaluation looks at whether Shell’s stock is undervalued to where it should be, based on future cash flow forecasts. A discounted cash flow analysis shows the shares are 44% undervalued at their current £26.26 level.

Therefore, the fair value for them is technically £46.04, although market unpredictability may move them lower or higher.

How does the core business look?

A risk to Shell is that it fails to leverage its impressive US oil, gas and petrochemicals projects into even greater profits under Trump’s second presidency.

However, despite the lower oil price this year, the firm remains a profit powerhouse. Its latest (Q3 2024) results saw adjusted earnings (the firm’s net profit number) rise 12% year on year to $6.03bn (£4.76bn). This was also way ahead of analysts’ estimates of $5.36bn.

Over the same period it also reduced its net debt by 13% to the lowest level since 2015. Additionally positive was cash flow from operations jumping 19% to $14.68bn.

Given these strong figures and low share price valuation, I believe the stock is too good an opportunity to miss. So, I will buy more very soon.

FTSE 100 heavyweight British American Tobacco (LSE: BATS) has fallen out of favour over the past few years. Since its 6 June 2017 all-time traded high on the leading index of £56.39, it has dropped 47%.

This broadly aligns with the societal shift in many countries away from cigarette smoking. However, as a former heavy smoker, I see this as no reason not to buy the stock.

On the contrary, I regard the big dividend income it generates me as some payback for the enormous sums I spent on its products over the years!

Additionally, the huge decline in the share price since 2017 has left it looking extremely undervalued to me.

How does the core business look?

Ultimately, earnings growth powers a firm’s share price and dividend higher over time.

A risk here for British American Tobacco is any stalling in its ongoing switch to New Category products. These are focused on nicotine replacement items. Such a delay would allow its key competitors who are doing the same thing to gain an advantage.

Nonetheless, analysts forecast the firm’s earnings will increase by a stunning 44.1% each year to the end of 2027.

How undervalued are the shares now?

My starting point in ascertaining whether a stock is undervalued is to look at how it compares to its competitors on key valuation measures.

On the price-to-sales ratio, British American Tobacco currently trades at 2.5 against a peer average of 3.2. So, it looks undervalued on this basis.

The same applies to the price-to-book ratio, on which it trades at only 1.1 compared to a 2.9 competitor average.

Next in this process, I look at how undervalued the firm seems based on its future forecast cash flows. Right now, this discounted cash flow (DCF) analysis shows British American Tobacco shares are 55% undervalued at their present price of £29.68.

So a fair value for them is technically £65.96, although they may go lower or higher, given market vagaries.

How much dividend income can be made?

Investors considering a £9,000 stake in British American Tobacco – the same as mine initially – would make £10,779 in dividends after 10 years. Over 30 years, this would rise to £86,532. Adding in the £9,000 first investment, the total value of the holding would be £95,532.

This would pay an annual dividend income by that point of £7,547, or £629 a month.

It is important to note that these figures are based on two assumptions. One is that the dividends paid are used to buy more of the firm’s shares – known as ‘dividend compounding’. The second is that the yield averages the same over the periods, but this is not guaranteed.

That said, analysts’ forecasts are that the dividends will rise to 246.3p in 2025, 257.3p in 2026 and 290.7p in 2027.

These would give respective yields based on current share price of 8.3%, 8.7% and 9.8%.

Will I buy more of the shares?

I am happy with the risk-reward balance of my present portfolio, which includes a sizeable stake in British American Tobacco.

However, if I did not have this, I would buy the stock today based on its huge earnings growth potential.

I think this is likely to propel its share price and dividend significantly higher over time.

BT (LSE: BT.A) shares have been shockingly volatile in recent years and that’s rolled over in 2025. They’ve slumped 10% in the last month.

They’re still up 18% over 12 months and we can’t really blame BT itself for the latest dip. Instead, that’s down to interest rate expectations.

Markets hoped for a string of rate cuts this year. But as inflation proves sticky, we may just get one or two.

Is this FTSE 100 stock a brilliant bargain?

As well as squeezing economic growth, that makes high-yielding stocks less attractive. Today, BT has a trailing yield of 5.78%.

That’s fabulous, but as with any stock there’s a spot of risk involved. And when investors can get more than 4% from cash or bonds, without putting their capital on the line, they’re less inclined to take that risk. All investments are relative.

Yet history shows that stocks and shares deliver a superior return to cash and bonds over the longer run. And by a long chalk. So moments like these can be a brilliant buying opportunity for far-sighted investors to consider.

As well as locking into that higher yield, BT’s lower valuation gives a margin of safety. Plus plenty of rewards if the share price recovers.

If stock analysts are right, it might recover at speed. Last week, I noted that the 13 analysts offering one-year share price forecasts for BT predict the shares would grow 37% over the next 12 months. 

That’s now climbed to a blockbuster 45%. If correct, that would lift BT share price from 138p to more than 200p.

Throw in the forecast yield of 5.5%, and we’re looking at a total return of more than 50%. Which is way more than any savings account or bond would return. But is that forecast too good to be true?

One issue is that these forecasts were made before the recent dip and don’t reflect changed interest rate expectations. So what about the company itself?

It’s a stunning source of income

Newish CEO Allison Kirkby is besieged by long-standing challenges such as falling revenues from fixed-line services, the fallout from the costly foray into sports broadcasting and the group’s massive pension deficit.

She also has to make the group’s massive £15bn investment in its Openreach full-fibre services rollout pay. Last year she said BT had passed the “inflection point” where the rewards can start to flow. 

As demand for faster and more reliable internet continues to grow, BT’s extensive network could become a significant revenue driver. Yet BT also has to hang on to customers who are being lured away by smaller, nimble and often cheaper alt-net broadband suppliers.

Kirkby plans to cut 42% of the company’s 130,000-strong workforce by the end of the decade. That’s ambitious, relies on AI and must be having a strange impact on morale. I wonder if she’ll manage it.

Trading at just 7.75 times earnings, BT looks really cheap. However, telecoms is a competitive sector and the shares are more of a gamble than I fancy taking right now. Brave investors willing to chase a potential outsized return may feel differently.

Having re-jigged my portfolio for this year and in light of a changing market environment, I’ve made my first big investment of 2025. The stock I choose was Credo Technology (NASDAQ:CRDO). This provider of high-speed connectivity solutions has plenty of supportive trends as we move through January and it’s the highest-rated growth stock using a model that focuses on data.

What does it do?

US-listed Credo Technology specialises in high-performance connectivity solutions, including optical, electrical, and mixed-signal technologies, this also includes integrated circuits and active electrical cables (AECs). Essentially, its tech addresses demand for faster and more energy-efficient data transfer. Unsurprisingly, this is critical for artificial intelligence (AI) infrastructure such as data centres.

Here’s why it’s in focus for 2025

ChatGPT and the start of the AI revolution triggered something of a gold rush, with investors diving into the picks and shovels of the sector — namely companies like Nvidia that provide the all-important graphics processing units (GPUs).

While Nvidia’s GPUs powered the first wave of AI development, the ecosystem is evolving. Nvidia remains dominant in GPUs, but hyperscalers are now strategically searching for specialised vendors who can help them optimise and customise their infrastructure.

Hyperscalers are the companies, like Amazon’s AWS, behind large-scale data centres that provide cloud computing, networking, and data storage services. They’re packed full of Nvidia GPUs and AMD servers and are designed to be highly scalable and can accommodate massive workloads. 

And networking is a key part of this efficiency of these hyperscale assets. Hyperscalers use Credo’s AEC products to build customised networking products, including network switches that help reduce redundancy and improve efficiency. Broadcom recently suggested that networking solutions market size will surge in the years through to 2027 and beyond.

Can a crazy valuation be easily justified?

The stock is currently trading at 812 times earnings from the past 12 months. That’s truly huge. But the expected earnings growth for this 2025 fiscal year is a phenomenal 450%. In turn, that takes the forward price-to-earnings (P/E) ratio down to 123 times. While earnings growth can’t carry on at 450% year after year, the subsequent forecast is still positive and very recent analysts suggests the consensus may underestimate the company’s true potential.

And while I’ve seen some reports suggesting data centre spending has peaked — near $280bn in 2024 — that simply doesn’t appear to be the case. Microsoft alone plans to spend $80bn on data centres in 2025, while the UAE’s DAMAC group just announced a $20bn plan to build data centres in the US.

The risks, of course, relate to this sky-high near-term valuation. If it fails to deliver on these huge growth expectations, then the stock could come plummeting back to earth. As such, all eyes should be on 4 March, when the company reports on its Q3 earnings. Moreover, there are some concerns about broader saturation in the sector, and companies in this fast-moving tech space will be aware that new technological developments could change the ecosystem and demand environment.

For now at least, Credo’s product line appears to be what the industry needs.

The big advantage of a Stocks and Shares ISA is that protects investments from taxes on capital gains on dividends. And I’m aiming to get mine up to £1,000,000 in assets.

That won’t be straightforward – and investment returns are never guaranteed. But I have a plan for getting there before I reach retirement age (in 2056). 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The road to a million

The road to a million is different for different people. The long-term average return from the FTSE 100 has been 6.5% – enough to get someone who invests £1,000 each month to £1,000,000 in 30 years.

My situation is different in two ways. The amount I have available each month is likely to vary – the way my income and outgoings work, I expect to be investing more in some months than others.

The second is I’m not starting from scratch. So I’m hopeful that I can get to £1,000,000 by 2056 even if I don’t manage to find £1,000 every month to buy shares with. 

Those two things mean I need to think carefully about how to go about investing. But I have a plan that I think gives me a decent chance of hitting my target.

My investment plan

The uneven nature of my income means I have a choice – I can either invest my cash as I get it, or I can try to spread it out to offset the unevenness. And I know what I plan on doing here.

Over the long term, I think holding excess cash – beyond what I need for my ordinary expenses and some for emergencies – is likely to weigh on my overall returns. So I’m looking to deploy it in the stock market as soon as I can.

There is, however, a caveat – I’m only willing to invest if I think I can manage at least the 6.5% return the FTSE 100 has been offering over the last couple of decades. 

Below that and it becomes less clear that the potential rewards are not worth the inherent risk of buying stocks. Fortunately, I think there are some decent opportunities available at the moment. 

A UK small-cap

FW Thorpe (LSE:TFW) is a stock I’ve been looking at recently – and I like what I’m seeing. The firm is a collection of businesses that manufacture specialist lighting solutions for industrial settings. 

The firm focuses on industries with regulatory requirements. Whether it’s healthcare settings or road tunnels, lighting needs to meet specific standards and this creates a barrier to entry for competitors.

While FW Thorpe has benefitted from lighting solutions moving from fluorescents to LEDs, this is now largely complete. That means there’s a risk growth might be slower in the future.

An ongoing shift to smart lighting as part of industry 4.0, however, could be the next boost for the company. And with the stock down 22% over the last 12 months, I think it also looks like good value. 

Building a portfolio

I don’t have cash available to invest right now – and I’m not willing to sell any of the investments in my Stocks and Shares ISA. But FW Thorpe is a company that has been catching my eye recently. 

I think there’s a good chance it can generate the 6.5% return I’m looking for. So there’s a good chance I’ll be adding it to my portfolio when I’m looking for stocks to buy later this month.