I imagine 2021 is a year a lot of International Consolidated Airlines (LSE: IAG) investors wish they could forget. Things started off well enough in the first few months. The IAG share price had picked up by March on the first signs of a Covid-19 thaw. Optimism, if guarded, had started creeping back into our economic outlook.

The uptick turned out to be premature, and IAG shares ended 2021 down 10.8% over the full 12 months. But that simple fact hides an eventful year for the company and its shareholders.

Over the course of 2021, the IAG share price rocked from a high of 222p to a low of 106p (rounding to the nearest penny). That’s a horribly volatile ride in anyone’s books.

International Consolidated succeeded in boosting its balance sheet, in order to stave off the possibility of the international airline group going bust. But fears of a possible return to the markets for more cash were clearly at the back of many investors’ thoughts during the year.

Balance sheet resilience?

At the interim stage, with results released on 30 July, that particular boat looked to have been steadied. At the time, the company spoke of “strong liquidity of €10.2 billion at the end of quarter 2.” On top of other measures, bond issues had been over-subscribed, suggesting confidence from institutional investors. But at the same time, IAG revealed operating costs for Q2 of €190m per week.

The shares continued on down. A brief resurgence in September failed to hold its ground, despite November’s Q3 figures. Passenger capacity had recovered to 43%, which might not sound great. But that was a lot better than the 22% the company was running at in the second quarter. At the time, IAG was hoping to reach around 60% of 2019 capacity in the fourth quarter. What about cash operating costs? Up to €260m per week.

Still, the company had just reported at new £1bn credit facility, guaranteed for five years. It was down to an agreement with UK Export Finance (UKEF) and a syndicate of banks, and was in addition to the previous £2bn UKEF facility which was drawn on March.

IAG share price fall

But that still wasn’t enough to assure investors, at least judging by the IAG share price. The stock was already falling again before the Covid-19 Omicron variant raised its head. By mid-December, IAG shares were down around 125p, before a slight year-end uptick.

So where does it go from here? Well, initial doomsday fears raised by the Omicron variant have not come to pass, at least not yet. It’s probably too soon to play down the apparently less severe symptons it causes. But it appears clear that it’s too late to try to contain it using travel restrictions.

So we’re looking at a stable door situation, and bolting it was yesterday’s option. The subsequent easing of newly imposed travel sanctions has helped the IAG share price. Since the FTSE 100 opened its doors in 2022, to the time of writing on Friday afternoon, IAG shares have rebounded 12%. What will happen in 2022 is anybody’s guess, but Covid-19 will be a major factor for sure.

Alan Oscroft has no position in any of the shares 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.

After a bumper 2021 for FTSE 100 dividends, the party is expected to slow down this year. That does not mean it is over, however. A number of stocks are still expected to increase dividends even now. This is great news for stock markets in general, but I do not see it as a reason to indiscriminately buy stocks. 

Glencore’s expected bumper dividend

Consider for instance, the FTSE 100 stock with the fastest expected dividend growth. As per AJ Bell research, this is the commodity miner and marketer Glencore (LSE: GLEN). Now, I have absolutely nothing against the stock. In fact, I held it until earlier this week. And it rewarded me well. But I just do not see enough upside to it at the current levels. 

Why I’m not convinced about the FTSE 100 stock

I think there is general consensus around the fact that commodity stocks as a whole could see a relatively sluggish 2022. This follows a scorching 2020 that spilled over into much of 2021 as well. Industrial metal prices are expected to soften now as there is a pullback of government spending. And Glencore is already trading at a high price-to-earnings (P/E) of 35 times, much higher than for its FTSE 100 peers. This leaves me unconvinced about whether it could see much more price increase, even with an increase in dividends. 

It is possible the economic recovery could be so sharp this year, that we end up having an unexpected boom in industrial metals anyway. Also, its earnings might be big enough in the next few months to make its relative price appear far more reasonable. This alone would make a case for its share price to rise. But this is all in the realm of speculation for now. I have a full-length article out on it on Monday, for anyone who might be interested, on my reasoning for selling my stockholding of Glencore. 

Royal Dutch Shell, I like

Here, I would like to turn my attention to the FTSE 100 stock that is expected to show the next biggest dividend growth in 2022, Royal Dutch Shell (LSE: RDSB). This is a stock I like for right now. In fact, in another article published yesterday, I talk about why I would now buy more of its shares. In summary, the reasons include a largely continued increase in oil prices since late 2020 and the likelihood of continued economic recovery that could continue to strengthen its financials. Further, its recently announced share buyback is also likely to positively impact its share price. 

There is a downside here too, though. My investments in oil stocks need constant monitoring. The world is now intent on moving towards clean energy, and companies like Shell are still trying to pivot in that direction. It remains to be seen what their future will look like in the next decade. But, I think for the foreseeable future, Shell could do quite well. I’d buy more of it, after it has already been very gratifying for me to hold in 2021. 

Manika Premsingh owns Glencore and Royal Dutch Shell B. 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.

It is a common misconception that investors need to buy risky shares to earn a high return. But it is possible to make high returns from blue-chip, FTSE 100 stocks. It might take a little longer, but I think that is preferable to taking on more risk. 

With that in mind, here are three FTSE 100 stocks that I believe can double my money over the next few years. I would be pretty happy to buy all of them for my portfolio, considering their potential. 

Banking recovery

The first company on my list is NatWest (LSE: NWG). I feel this enterprise has the potential to double my money for two reasons.

First of all, it looks cheap. Shares in the lender are changing hands at a price-to-book (P/B) value of approximately 0.65. This suggests that they could increase in value by 52% if the stock trades up to book value. 

Technically, if a company is profitable, it deserves to be valued at or around book value. As the bank’s profits increase, I think the valuation will improve. 

I think the stock could also boost my returns through a combination of profit growth and dividend income. The shares are set to support a dividend yield of 4.3% next year. This income, combined with a re-rating of the stock, could provide a total return of more than 100% over 10 years. 

However, if growth comes to a halt, these returns may not materialise. Another economic crisis is probably the biggest threat to the company’s growth. 

FTSE 100 recovery

Another company that I believe can double my money over the next decade is the catering group Compass (LSE: CPG). 

Historically, this business has grown through a combination of acquisitions and organic growth. Before the pandemic, the corporation was growing in excess of 10% per annum.

I see no reason why the group cannot return to its previous strategy. There are plenty more targets out there for the firm to acquire for its portfolio. What’s more, as humans will always need to eat, there will always be a need for its services. 

Assuming the organisation can continue to grow at 10% per annum, and its share price tracks this growth, the stock could double my money in just over seven years. 

Headwinds that could upset this target include inflation and rising wage costs. These could weigh on profit margins and demand for the company’s services. 

Incoming champion

The final company on my list is income champion Phoenix Group (LSE: PHNX). 

This corporation manages books of life and pension policies. Using economies of scale, it can push down operating costs and extract cash synergies from newly acquired books of business. 

As a result of this strategy, Phoenix is a dividend champion. The stock currently supports a dividend yield of 7.4%. If I reinvest this dividend year after year, I would be able to double my money after nine-and-a-half years, according to my calculations. 

The risk of using this approach is that the company decides to cut its dividend. This could upend my strategy. It would be challenging to double my money with the enterprise if it does go down this route. 

That said, there is also potential for capital gains. The stock is trading at a forward price-to-earnings (P/E) multiple of just 8.5, which looks cheap. 

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Compass Group. 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.

If we continue to recover from the pandemic in 2022, I expect oil stocks to come out ahead. Specifically, well-established FTSE 100 ones like Royal Dutch Shell (LSE: RDSB). Oil is closely linked to the fortunes of the economy. Especially now, when the slowdown has gone hand-in-hand with severe travel restrictions. It is only logical then, that as we are allowed to move around more, there will be even bigger demand for oil. 

Buybacks could lift Royal Dutch Shell shares

Crude oil prices have largely been rising since November 2020, when vaccines were first developed, leading to optimism about the future of business. In line with that, oil stocks have done well too. And I reckon they will continue to do so. In fact, just yesterday, Shell said that it will carry out share buybacks “at pace”. This is quite likely to be good news for existing shareholders, since fewer Royal Dutch Shell shares in the market could push up the price.

Higher than average dividend yield for a FTSE 100 stock

Also, I like the company’s dividend prospects, which too could be positive for the share price. Right now, its dividend yield is 3.5%, which is slightly higher than the FTSE 100’s yield of 3.3% anyway. But if it continues to see an oil price bonanza they would probably rise more. Considering that its current dividend payouts are a fraction of what they were pre-pandemic, it is not farfetched to think that they could rise more. I am increasingly tilting towards investing for a passive income, so this is a big reason for me to consider buying more of Shell shares in 2022. 

Oil is going out of vogue

But as is often the case with stocks, where there are rewards, there are some risks. And this FTSE 100 stock is no different. Oil stocks are divisive right now. On the one hand, we need oil to survive and even grow. On the other hand, polluting fuels are really bad for the planet’s and our long-term future, as we know all too well. For this reason, we also know that they will be on their way out over the course of this decade. 

Oil biggies are now recreating themselves as clean energy providers. How far they succeed in doing so, remains to be seen. For this reason, I believe I have to actively monitor my oil-related investments.

What I’d do

As an investment writer, it is relatively easy for me to monitor my investments. But if I were engaged in a completely unrelated field, I might struggle to do so. This is a potential drawback of the stock. Instead, I would then prefer buying stocks I do not have to worry too much about for the next 10 years. But I do also believe that the returns from a stock like Shell could be big enough in the next three to five years to justify staying up to date with them. I continue to maintain that I will buy more of the stock this year. 

Manika Premsingh owns Royal Dutch Shell B. 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.

That travel stocks have suffered a lot recently is no secret. In fact, they continue to do so. I hold three travel stocks in my investment portfolio. The first is the FTSE 100 aviation stock International Consolidated Airlines Group. The other two are the FTSE 250 coach operator National Express and the budget airlines company easyJet. All three of them have had an underwhelming past year, because of continued uncertainty pertaining to the pandemic. But not all travel stocks are made the same. Consider, for example, this penny stock. 

Air Partner upgrades profit expectations

Air Partner (LSE: AIR), which provides air charter services along with aviation security solutions, has seen a 29% increase in share price over the past year. And it appears that things are about to get even better for the stock, which is priced at just 89p as I write. It upgraded its profit expectations for the year ending 31 January 2022 just yesterday. It now expects underlying profits to be “materially ahead of market expectations” compared to how things looked at the time of its last update in December last year. 

The company, with a market capitalisation of £55m, has also managed to remain relatively financially healthy over the past couple of years, despite the pandemic. Both is revenues and profits took a hit during 2020, but have recovered quite a bit last year. And going by its latest update, it appears that they will be even more robust than initially envisaged. 

The case for a further rise in the penny stock

Since travel stocks are sensitive to the economy, especially in the pandemic, I think that as the recovery takes firmer root in 2022, Air Partner could do even better. Additionally, its relative price could make a case for buying the stock for my portfolio as well. Its present price-to-earnings (P/E) ratio is 21.5 times. However, if its profits exceed expectations, I expect it would fall to much lower levels.

And a profitable, growing company with a low P/E is a sure sign to me that its share price could rise much more. Of course, I will be able to forecast its share price with greater accuracy only once we have the numbers for the full year. But we do have something to work with even now. According to Financial Times, the one analyst who has made 12-month projections for the penny stock expects a pretty big 40% increase in its share price. 

What I’d do

It goes without saying that all forecasts are subject to change. Especially now, I reckon, because the pandemic has created just so much more uncertainty than we would normally expect. And it is nowhere near its end it seems! But, at the very least, our capacity to deal with it is significantly improved. And just for that reason, I think we could see at least some economic recovery in 2022, which in turn could lead to much potential growth in the Air Partner stock. I’d buy it now.

Manika Premsingh owns International Consolidated Airlines Group, National Express Group and easyJet. 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.

After a turbulent and troubled 2020 for BT Group (LSE: BT.A), shares in the former UK telecoms monopoly fared much better in 2021. Indeed, this popular and widely held share easily beat the wider FTSE 100 index last year. Here’s how the BT share price has performed since before the pandemic.

The BT share price crashed in 2019-20

At end-2019, the BT share price closed at 192.44p. Alas, 2019 was another poor year for the stock, having ended 2018 at 238.1p. Thus, the shares lost 45.66p — or 19.2% — in 2019. But the worst was to come. As coronavirus infections soared, global stock markets went into meltdown. At 2020’s rock-bottom, BT shares crashed to an intra-day low of just 94.68p on 3 August 2020, before bouncing back to close at 98.02p. However, as optimism rose on news of effective vaccines, the stock rebounded to end 2020 at 132.25p. Even so, this left the shares down 60.19p in 2020, a collapse of almost a third (-31.3%).

BT surged by over 28% in 2021

2021 proved to be a much better year for long-suffering BT shareholders. After early gains, the BT share price soon started to slide again, hitting its 2021 intra-day low of 120.45p on 9 February. But then the shares surged spectacularly, roaring ahead to hit their 2021 intra-day high of 206.7p on 23 June. However, they then fell back down almost as fast as they had raced upwards. On 26 October, they hit an intra-day low of 134.85p, before recovering to close at 143.25p. The shares then strengthened in late 2021, ending the year at 169.55p. Thus, this popular stock leapt by 28.2% last year, almost doubling the FTSE 100’s 14.3% gain (both excluding dividends).

What lifted BT shares in 2021?

I believe that the BT share price was driven by three key factors in 2021. First, after bottoming out in February, the shares came to the attention of value investors. Thus, strong buying  pressure between early February to late June pushed the stock up by almost 86.25p from 2021’s low. However, having exceeded £2 in the summer, selling pressure drove the stock back down to October’s low. Then, as optimism returned later in 2021, the shares bounced back again.

The second factor supporting the BT share price in 2021 was stake-building in the group by a renowned telecoms investor. On 10 June, BT revealed that Altice, the Luxembourg-based French telecoms firm controlled by French-Moroccan billionaire Patrick Drahi, had built up a 12.1% stake in BT. Nominally, this stake was worth £2bn, but was largely amassed using equity derivatives and loans arranged with investment banks. Regardless of how it was attained, this holding made Altice BT’s biggest shareholder. It also explains the strong surge in BT shares in the preceding four months. Although Drahi has said he has no intention yet of making a bid for BT, he has since increased his stake to 18%. This takes his holding to 1.5 times that of BT’s second-largest shareholder, Deutsche Telekom (with a 12% stake).

Finally, the third factor driving the BT share price is the return of its cash dividend, following its May 2020 cancellation due to Covid-19. In addition, regulator Ofcom relaxed BT’s regulatory burden, plus the government introduced ‘super-tax breaks’ on BT’s capital investments in full-fibre broadband networks. All this added up to a positive year for BT stock.

Cliffdarcy has no position in any of the shares 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.

I have had constant learnings during my investing journey. But the process was accelerated during the past two years of the pandemic. These learnings would not amount to very much, however, if I do not apply them to my investment decisions. So, I am resolved to do exactly that in 2022. Here are three of my top investing resolutions, keeping in mind that the pandemic is still ongoing.

#1. Keep cash in hand

If all my funds are tied up in either investments or to meet my expenses, I do not have free cash to invest at a moment’s notice if the opportunity arises. Like for instance, during the stock market crash of 2020. I did manage to make some good investments around the time. But not one of them was made at the absolute bottom for the index.

Now, I am a big believer in buying high-quality stocks irrespective of their current price. Because if I choose well, chances are that over time the stocks would rise anyway. But if I could buy them at a once-in-a-lifetime kind of low, my returns are likely to be significantly better over time. 

#2. Choose dividend stocks carefully

Now, more than ever, I am carefully considering the dividend stocks to buy. As the pandemic happened, many FTSE 100 companies stopped paying dividends. And since stocks’ prices had also fallen at the time, I felt locked-in with investments that did nothing for me. At least for that time. Of course the pandemic is a rare risk. But even then, I think that as a long-term investor it is essential to keep dividend continuity in mind. 

For this purpose, I would also look at stocks with low current dividend yields. It is possible that over time they could prove to be highly rewarding. An example is the industrial equipment rental company Ashtead. It has grown its dividends fast over the past decade. But because its share price has been rising as well, its dividend yield has remained underwhelming. For instance, it is a minuscule 0.7% right now.

But if I had bought it 10 years ago and remained invested for the entire time, as per recent AJ Bell research, it would have given me the biggest dividend yield among all FTSE 100 stocks. It is on my 2022 buy list now. The only red flag for me here is that it is closely connected to the cyclical construction industry. If the pandemic continues to be a drag on growth, it could be affected in the foreseeable future. 

#3. Note the burgeoning sectors

If any sector took off during 2020 and 2021, it was e-commerce. And this includes not just online sellers but also stocks of paper and packaging providers, warehousers, and delivery companies. Their growth could slow down as the pandemic eases, but I think it is increasingly clear that e-commerce’s growth path has been accelerated during the time. 

And that could explain why these stocks’ prices are still rising. I have no doubt that there will be ups and downs along the way, but on the whole, they will show strong growth. I intend to build my portfolio with these promising stocks in 2022. 

Manika Premsingh has no position in any of the shares 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.

Sometimes people buy penny stocks hoping they will increase in price and provide a quick profit. I prefer to buy shares in businesses I think have great long-term potential. Here are two such companies whose shares trade for pennies not pounds. I’d consider buying both for my portfolio today and holding them for a decade.

Vertu Motors

Although the type of cars people drive may change in the future, I think demand for automobiles in general will stay high in coming years. That’s one reason I feel quite upbeat about the prospects for car dealers.

One such dealer is Vertu Motors (LSE: VTU). It sells a wide range of car marques from over 150 outlets nationwide. It is the fifth largest car dealer in the UK and operates under brands such as Macklin Motors and Bristol Street Motors. The car dealership industry remains quite fragmented so I like Vertu’s strategy of integrating regionally strong firms into its company. Last month, for example, it announced the purchase of a couple of Toyota dealerships in the Midlands. I see that strategy as one that could add significant scale in the coming decade, boosting profitability.

Share price surge

The Vertu share price has more than tripled since the depths of pandemic uncertainty in April 2020. It is up 102% over the past year, at the time of writing this article yesterday.

But I don’t think it is too late to add the company to my portfolio. It has started paying dividends again, although that doesn’t mean it will necessarily do so in future. Last month, it raised its full-year profit forecasts.

One risk that the company itself has noted is supply constraints in the car industry. Staff absence due to medical isolation could lead to reduced operating hours at some dealerships too. Both factors could eat into revenues and profits.

Lloyds

Another nationwide chain with strong local brands is banking group Lloyds (LSE: LLOY). As well as the Lloyds brand, it operates under well-known names such as Halifax and Bank of Scotland.

Banking can be a very profitable business. For the first nine months of this year, the company reported statutory pre-tax profits of £5.9bn. I think demand for banking will be resilient over the next decade. Unlike high street neighbours such as shops, I actually think a boon in online custom could be good for banks. Many customers feel reassured banking online with a familiar, well-established bank like Lloyds rather than a digital start-up. So I think digital banking could help sustain revenues while possibly offering the chance to lower costs in coming years.

A large bank among the penny stocks

Lloyds trades among other penny stocks despite its strong business and what I see as a bright future. There are some clouds on the horizon, though. It is heavily exposed to the UK property market, so any crash in housing values could hurt its profitability.

I’m hopeful the bank will raise its dividend in 2022 as it has been stockpiling spare cash. But whether it does or not, I reckon there is strong long-term profit potential at the company. That’s why I’d be happy tucking it away in my portfolio for a decade.

Christopher Ruane owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group and Vertu Motors. 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.

If I planned to invest £3,000 in a Stocks and Shares ISA, there are several UK shares that I’d consider in 2022.

First on my list is media platform Future (LSE:FUTR). It’s a global platform that owns a lot of specialist title. For instance, it owns dozens of popular magazines, including techradar, tom’s guide, and Moneyweek. In general, I reckon print media is likely to decline over time, but Future has multiple and diversified revenue streams. These days, most of its earnings come from digital adverts and e-commerce products. It can produce content once, then distribute and monetise it in many innovative ways. By using its proprietary technology, it should be able to scale and add new revenue streams.

Quality UK shares

When looking for the best UK shares, I like to see sales, profit and margins all climbing higher. And that’s exactly what I can see with Future. In fact, earnings have grown by 72% a year over the past six years. I reckon that’s pretty impressive.

It’s also got a great track record and is focusing on attractive, growing markets like the US. Although listed in the UK, Future has a much larger, global audience with 305m online users.

Looking to the future

One of the ways in which it has been growing the business is through buying other smaller content providers and publishers. Many are instantly earnings enhancing, but a word of warning. It can be a challenge integrating other businesses into an organisation, especially if work cultures vary. Also, it faces intense competition, so Future will need to keep innovating to stay ahead.  Overall, I’d say it’s an exciting growth stock and I’d definitely consider it for my ISA.

Exciting growth stock

The next UK share I’d consider is another company that demonstrates both quality and growth. It’s Alpha FX (LSE:AFX), which is focused on providing financial solutions. With a market capitalisation of under £1bn, it’s a smaller (but not small) company. But I reckon that’s a good thing. I’ve often found smaller companies to be particularly lucrative, if chosen carefully.

Alpha FX focuses on two areas: foreign exchange risk management and alternative banking. The latter of these is a new addition to the business. Overall, business seems to be going well. Sales and profits have been steadily climbing over many years. It has a diversified client base from a range of sectors, and client numbers are growing.

Driven by its founder

The business is debt-free and benefits from a strong balance sheet. I also like that the firm is founder-led. I generally like to find quality UK shares that ideally offer a double-digit return on capital. With a return on capital figure of over 25%, Alpha FX firmly ticks this box for me.

There are some things to bear in mind, however. As with many industries, it may have seen an increase in staffing costs in recent months. I’m expecting a trading update in January so I’ll be interested to know if that was the case. Also, its alternative banking business is relatively new. Whether its success from the FX risk management business can be replicated is still uncertain.

Overall, I like what I see. I reckon this growing small-cap stock could certainly be worth considering for my portfolio.

Harshil Patel has no position in any of the shares mentioned. The Motley Fool UK has recommended Alpha FX. 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.