Investing in a Self-Invested Personal Pension (or SIPP) is perfect for an investor with a long-term approach to investing, like me.

Along the way, as dividends pile up they can be kept within the SIPP and used to fund the purchase of more shares without needing to add extra capital. That simple but powerful investing approach is known as compounding.

A SIPP investor could have the best of both worlds, adding in new funds at the same time as compounding dividends from current holdings to buy more shares.

Here are five UK dividend shares for income-focussed SIPP investors to consider. Each yields at least 5.2%.

ITV

Broadcaster ITV (LSE: ITV) has a policy of paying at least 5p per share as a dividend annually. In its results this month, it delivered once more on that and also mentioned that it expects to grow the dividend over the medium term.

Given that the ITV share price is in pennies, that means that the FTSE 250 broadcaster now yields 6.5%.

Still, the share price has disappointed and is now 9% lower than it was five years ago.

I think that reflects ongoing investor concern about the business prospects. Traditional broadcasting remains significant but is in decline. ITV has expanded its digital offering considerably, but that costs money and the market is much more fragmented, making it harder to build economies of scale.

But I think its intellectual property, viewer base, and studio rental business are all competitive advantages.

Aviva

Insurance may be boring but it can be lucrative. Insurer Aviva slashed its dividend per share in 2020 but it has since been raising it handily.

Last year saw a 7% increase in the dividend per share and Aviva now yields 6.6%. Its strong brands combined with a huge customer base (over 17m in the UK alone) are real strengths in my view.

A proposed combination with Direct Line could accelerate growth and add economies of scale. But it also risks distracting management from the core business.

WPP

Another firm that has cut its dividend over the past few years is advertising network WPP. But its yield still stands at a juicy 6.2%.

Can it last?

The City seems nervous about the risks AI poses to lots of the ad creation and ad space buying work WPP currently does. The share has already fallen 24% in 2025.

But I reckon its proven business model, client relationships, and large agency network are strengths. AI could help reduce costs so may be an opportunity, not just a threat.

J Sainsbury

Retailer J Sainsbury needs little introduction. Its 5.2% yield makes it a share I think income investors should consider.

Both in the supermarket business and through its Argos operation, the FTSE 100 company has done a good job of integrating digital and offline shopping.

But a weak economy could put further pressure on profit margins, as rivals cut prices to attract shoppers.

BP

5.8%-yielding BP has been doing what looks like a U-turn, ditching much of its renewable energy focus to put more emphasis on oil and gas.

I see that as good for profitability. But it does increase the risk to both sales and profits if the oil price crashes, as it tends to do from time to time.

A Stocks and Shares ISA is a long-term investment vehicle and many investors keep dividends inside the tax-free ISA wrapper to reinvest. But an alternative is to take them out along the way as passive income, while leaving the capital untouched so that hopefully it can keep producing a stream of dividends year after year.

How could this work in practice?

Below I illustrate how a £20,000 ISA could potentially generate a £1,500 passive income each year.

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.

Choosing the right ISA

The first thing to consider is what Stocks and Shares ISA to use. After all, there are lots on the market.

They each have differences, for example, in cost or service level. Each investor is also different, so I believe it makes sense for everyone to do their own research and choose the ISA they think suits them best.

With the £20k in it, the ISA would then be ready to invest and start generating passive income.

Getting the basics right

Whether investing for income (as here), growth, or a mixture, certain principles of good investing apply.

For example, spreading the £20,000 across a range of different companies would help reduce the impact on passive income streams if one of them cancels its dividend. That is always a risk, no matter how strong the company looks today.

How much could a £20k ISA earn?

Is it realistic to aim for a £1,500 annual passive income from a £20,000 investment?

I think it is in today’s market, even while sticking to blue-chip businesses with proven models. The amount of passive income earned annually is a function of dividend yield.

£1,500 is 7.5% of £20,000, so an average 7.5% dividend yield would be required to hit the target.

That is only an average: some shares in the ISA may yield less and others more.

One income share to consider

For investors with a passive income focus, one share to consider is FTSE 100 financial services firm Legal & General (LSE: LGEN).

The company reported its annual results this week and they included a dividend increase of 5%. That has been the norm over the past several years, although from next year the company plans a 2% annual increase. That is slower growth but it is still growth. The share already yields 8.8% and if the dividend keeps growing, the prospective yield could be higher.

With a strong brand, large customer base and resilient demand for retirement-linked products, I think Legal & General is a solid business. Its pre-tax profit last year was over half a billion pounds.

But the sale of a US business could mean smaller profits in future, while there is a risk that a US stock market crash could hurt investor confidence and lead to some policy holders pulling out funds.

I am also a bit wary of management’s enthusiasm for buying back its own shares. That may indicate a lack of attractive growth opportunities for the business as it could otherwise use the money on them.

Still, I see a lot to like about Legal & General and reckon it offers significant passive income potential.

Something quite extraordinary is happening in the gold and silver market. Gold prices don’t move by a $1,000 in just over a year, for no reason. Rather than pay expensive storage fees for buying the physical stuff, I am much more interested in the metal in the ground. As a miner of both gold and silver, this FTSE 100 stock remains one of my favourites.

Cash cow

Surging gold prices have been a tonic for the Fresnillo (LSE:FRES) share price. Up over 100% in a year, I think the bull run is just getting going.

Considering its small market cap, the amount of cash flow that the company is generating dwarfs the Magnificent 7 stocks, including the mighty Nvidia.

The key to its growing cash pile is not all down to metal prices. In 2024, efficiencies resulted in cost savings of $40m.

All-in sustaining cost (AISC), a key measure in the mining industry, has been moving in the right direction too. In 2024, gold AISC was in the ballpark of $1,800 across its mines. Yes, there are some extra expenses on top of that. But essentially for every 1 troy ounce of gold it mines it’s making $1,000 profit today.

Run on gold

There are many ideas out there for the unprecedented surge in gold prices. Tariffs and trade wars together with sticky inflation are undoubtedly contributing. But I think there is something much more fundamental at play.

For years, non-Western central banks have been accumulating gold. Since the election of Trump, however, something fundamentally has changed.

Countries across the globe are repatriating their gold from London and New York vaults. The London Bullion Markets Association, the oldest gold exchange in the world, is simply unable to ship gold and silver out fast enough. Settlement dates that use to be transaction plus 1 day (T+1) are turning into T+8 weeks.

Tier one asset

I believe the reason behind the repatriation is that trust in the system is breaking down. In the past, countries would be happy to exchange their gold reserves for US dollars. But not anymore. They want the real thing deposited in their vaults.

Outside of US dollars and Treasuries, gold is the only tier one asset out there. And unlike the former two, it can’t be sanctioned or inflated away. Gold has absolutely no counterparty risk.

Risks

Picking individual precious metals miners is much harder than just buying a sector ETF, like the Van Eck Gold Miners. Fresnillo may be the largest primary silver producer in the world, but it’s a small player in the industry.

Outside of falling metal prices, one of the bigger risks to its share price is its large exploration portfolio. If future drill results disappoint, or it encounters challenges bringing a new mine online, then future production targets could be affected.

When it comes to mining stocks, I believe that the train is just about ready to leave the station. Relative to the movement in underlying metal prices, the Fresnillo share price has barely moved. For me, it has a lot of catching up to do. That is why I continue to buy more of its shares when finances allow.

While the FTSE 100 has made a positive start to 2025, shares in Rentokil Initial (LSE:RTO) are down almost 20%. In my view, that puts them in bargain territory – and I’ve been buying as a result.

At a price-to-earnings (P/E) ratio of around 27, the stock looks expensive. But I think things could look very different a couple of years from now, which is why I’ve decided to add to my investment.

First sight: expensive

A first look at Rentokil doesn’t stand out as a bargain. It trades at a P/E ratio of 27 and – alarmingly – its earnings per share have declined from 15.3p in 2019 to 12.1p in 2024. 

That’s very much not the direction things are supposed to be going in. Especially not with the likes of Alphabet (25) and Meta (22) trading at meaningfully lower multiples while growing. 

Rentokil shares come with a bigger dividend – at today’s prices, the yield is just under 3% – but that by itself isn’t a reason to consider buying the stock. Investors should probably hope for better. 

I think, however, that there are strong reasons to believe that better things are on the horizon. And while the market focuses on the near term, I’m buying the stock for the long haul.

Margins

Rentokil’s revenues have actually been growing pretty impressively – sales have almost doubled since 2019. From an investment perspective, that’s something I can work with.

The trouble is, margins have collapsed. Five years ago, the company’s operating margin was around 14%, but this fell back to 10% in 2024 and is why earnings per share are down. 

That doesn’t sound like a lot, but margins declining at that rate means a 30% decline in profits. I think, however, the firm is on the road to recovery and this should show up in the next couple of years. 

Rentokil has been working its way through a period of higher costs after the acquisition of its US rival Terminix. But as the company integrates its new operations, I expect a recovery in profitability. 

My price target

If Rentokil can get its margins back to 15% (which I think is plausible), earnings per share should reach 21.25p. And a P/E multiple of 20 implies a share price of £4.25 – almost 33% above the current level.

Obviously, there are no guarantees. The Terminix integration is proving more difficult and more expensive than investors might have hoped and the risk is this continues and margins stay depressed.

Given the way things have gone so far, I wouldn’t rule this out. But both the dividend and the potential for revenue growth create a margin of safety in my projections that somewhat offset this risk.

My anticipated return doesn’t include either of these and a growing pest control market means this seems likely to me. So while there’s a lot of uncertainty, I think the share price more than reflects this.

Undervalued?

At a P/E multiple of 27, Rentokil shares don’t look like they’re undervalued. But I think expanding margins could make profits rise sharply over the next couple of years. 

I don’t believe this is being reflected in the share price at the moment. And I’ve been putting my money where my mouth is on this one and buying the stock for my portfolio.

When investing for a second income, it’s important to know which type of ISA to choose. They all provide great tax benefits but have certain pros and cons, depending on the risk profile and goals of each individual.

A Cash ISA, for example, is very low risk but seldom returns more than a 5% fixed-rate at the very best (usually much, much less). A Lifetime ISA is focused primarily on buying a ho meor retirement.

A self-directed Stocks and Shares ISA is flexible and can achieve the highest return. But there’s no guarantee and it could even result in a loss!

However, this risk can be minimised with the right strategy and careful stock-picking. 

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.

What to put in a Stocks and Shares ISA

I’m a fan of dividend stocks as they can deliver regular income without the need to sell any shares. They often experience slow price appreciation, so for the investment to grow, it requires buying more shares or reinvesting the dividends.

Growth stocks can be more lucrative over long periods, assuming the investor doesn’t need access to any of the capital.

Overall, I think a well-balanced portfolio should include both. I try to aim for 30% growth stocks and 70% dividend shares.

A stock to consider

A good example of a stock to research further that straddles both growth and dividends is Aviva (LSE: AV.). The multinational insurer maintains a consistently high yield between 5% and 7%, with the stock price up 86.4% in the past five years. 

That equates to combined annualised returns around 17%.

Last year, Aviva entered the Lloyd’s of London underwriting market with the acquisition of Probitas 1492. It went on to deliver its best-ever result for 2024.

More recently, it agreed to purchase motor insurance group Direct Line for £3.7bn. Shareholders seem optimistic but the deal could still end up in disaster if it fails to turn a profit. Prior to the agreement, Direct Line stock was down 53% from its five-year high.

But if anyone can turn the business around, I think Aviva has a good chance. It’s certainly a stock I plan to keep in my dividend portfolio for years to come.

Building up to a second income

Between 2003 and 2023, the FTSE 100 returned a total of 241% to shareholders, equating to average growth of 6.3% on an annualised basis (including dividends). The US-based S&P 500, although struggling at the moment, has historically returned 12.5% on average.

To avoid exposure to a single region, it can be beneficial to include a mix of stocks from both markets. That could realistically return 10% on average per year. This return could be received as a mix of dividends and selling shares as they appreciate. It largely depends on the individual’s personal investment strategy.

Working on that average, an ISA with approximately £240,000 in it would return £24,000 a year (£2k a month).

With an initial investment of £10,000 in an ISA and monthly contributions of £200, it would take just over 20 years to reach £240,000 (with dividends reinvested). For an investor under the age of 40, the monthly contributions could be even less and they could still reach the goal before retirement.

Each year, in his capacity as chairman and chief executive of Berkshire Hathaway (NYSE:BRK.A), Warren Buffett has written a letter to shareholders.

The latest one covers events in 2024, a period during which the group’s 189 operating businesses (mainly in the insurance, railroad and utility sectors) reported earnings of $47.4bn.

This figure excludes the $52.8bn of gains made on its investments in other listed companies. Most of this ($49.3bn) has yet to be realised, it simply reflects the change in market value of these shareholdings over the course of the year.

Buffett tends not to focus on this number. That’s because “over time, we think it highly likely that gains will prevail — why else would we buy these securities?”

And he notes that the value of these will change significantly from one period to another. That’s why he stresses (yet again) the need to take a long-term view when it comes to investing.

Buffett writes: “Our horizon for such commitments is almost always far longer than a single year. In many, our thinking involves decades. These long-termers are the purchases that sometimes make the cash register ring like church bells.”

Indeed, this approach appears to have paid off.

Spectacular growth

From 1965-2024, Berkshire Hathaway’s stock price has grown by an average annual rate of 19.9%, almost double that of the S&P 500. Overall, this has resulted in an astonishing 5,502,284% increase in the value of each share.

And if it wasn’t for the US stock market, I’m not sure what Buffett would be doing today. The billionaire modestly writes: “Lacking such assets as athletic excellence, a wonderful voice, medical or legal skills or, for that matter, any special talents, I have had to rely on equities throughout my life.”

Piles of cash

Elsewhere in his letter, Buffett acknowledges that the group’s sitting on a lot of cash. At 31 December, its balance sheet disclosed $334bn of cash, cash equivalents and short-term Treasury Bills. To put this in context, it’s enough to buy Shell and BP, and have $35bn left over.

Some have speculated that the $167bn increase during the course of the year is a sign that he thinks a crash is coming.

But without explaining why the company’s been selling equities and stockpiling cash, he says: “Berkshire shareholders can rest assured that we will forever deploy a substantial majority of their money in equities… Berkshire will never prefer ownership of cash-equivalent assets over the ownership of good businesses, whether controlled or only partially owned.”

And finally…

However, not everything in the Berkshire Hathaway garden’s rosy. In aggregate, its operating companies are hugely profitable. But 53% of them reported falling earnings.

Also, Buffett admits to sometimes making mistakes, both in terms of “assessing the future economics of a business” and hiring people.

And I think with tinge of sadness, the American writes: “At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters.”

But whenever that time comes, I’m sure millions of investors around the world will acknowledge his influence. I think he’s proven that by investing in quality companies at a fair price – and taking a long-term view – it’s possible to make lots of money.

May those cash registers keep on ringing!

When things get choppy in the stock market, share prices can fall dramatically. And this can be especially true of growth stocks, where returns are some way in the future.

I think this has been the case recently. There are a few shares that I see having become much more attractive since the start of the year – and I think investors should add them to their watchlists.

Judges Scientific

Judges Scientific (LSE:JDG) is a great example of the kind of stock I have in mind. It’s down 20% since the start of the year and it’s reached a level where I’ve actually started buying it for my portfolio.

The scientific equipment conglomerate has a market cap of £475m and generates around £16m in free cash. That’s around a 3.1% return, but I’m not interested in this one for the instant returns. 

The company looks attractive because it has a lot of scope for future growth. Primarily, I expect this to be driven by acquiring other businesses – which is something it has done very successfully in the past.

This can be risky – the danger of overpaying for an acquisition is real. But the lower the share price goes, the more I think investors have a margin of safety against this possibility.

Tristel

Another growth stock I think looks attractive at the moment is Tristel (LSE:TSTL). This is also stock I’ve been buying recently and it’s one investors should consider it too.

The stock is down almost 25% since the start of the year, but it could be on the verge of something important. The medical disinfectant company is in the process of expanding into the US market. 

This won’t necessarily be straightforward. Tristel’s products command a premium price and this means there’s a risk that hospitals might be reluctant to move away from existing solutions. 

The firm, however, has had some success with its wipes for ultrasound and it’s expecting approval for its ophthalmology solution this year. Over time, I think this could generate some significant growth.

Five Below

The S&P 500 might be in correction territory, but the US stock catching my eye at the moment is Five Below (NASDAQ:FIVE). It’s a discount retailer that I think has some exciting prospects. 

The company is hoping to reach 3,500 outlets, which is roughly double its current number. If it can do this, I expect a big boost to profits, but there are some potential challenges ahead. 

One of these is inflation. This is particularly relevant in the US at the moment and could mean consumer spending taking a hit, causing Five Below’s growth to come in slower than expected.

I think, however, that this is reflected in the share price. The stock trades at a price-to-earnings (P/E) ratio of 14, which isn’t what someone might expect to see from a company with big growth opportunities.

Off the beaten track

The stocks I’ve mentioned here aren’t ones that typically get a lot of attention. But I’m a firm believer in the idea that the best opportunities are often found in places where other investors aren’t looking. 

Until recently, Judges Scientific, Tristel, and Five Below had all been fairly expensive. With share prices falling, however, I think investors should add them to their watchlists.

Despite the recent market turbulence among US stocks, there are still plenty of businesses that have delivered stellar returns over the last 12 months.

The S&P 500’s up by just shy of 13%. Yet that doesn’t even come close to the double- and even triple-digit returns of some American growth shares. In fact, across the New York Stock Exchange and Nasdaq, the five top performers have generated an average gain of 100%!

America’s top five performers

Starting from the best, the US stocks that have delivered the highest share price returns over the last 12 months are:

1. Palantir Technologies (NASDAQ:PLTR), +235%
2. Alibaba Group, +88%
3. T-Mobile US, +61%
4. Philip Moris International, +60%
5. AT&T Inc, +57%

It’s interesting to see two telecommunications firms (T-Mobile and AT&T) make it into the top five. Looking at the Nasdaq Telecommunications Index, this sector hasn’t been a particularly great place to invest in over the last couple of years. But smart investors focused on the long term have managed to snap up seemingly winning businesses and ride the tailwinds of an industry recovery.

However, Palantir Technologies is the standout performer by far. Even after losing a third of its market-cap since mid-February, the stock’s still more than tripled investors’ money since last March. So what’s behind this stellar performance?

The rise of Palantir

Palantir’s been receiving a lot of attention lately as an AI stock pick. The firm’s Artificial Intelligence Platform enables businesses to integrate AI into core analytical operations rather than being part of the sideshow. The result is higher quality analysis, leading to better data-driven decision-making. And customers are seemingly loving this functionality when looking at Palantir’s financial results.

Its latest quarterly earnings saw revenues surge 36%, with expectations of similar growth for the first quarter of 2025. What’s more, since Palantir is profitable – a rare trait for US tech stocks – underlying margins sit near 17%, enabling a good chunk of this top-line income to flow to the bottom line.

With this performance in mind and the general hype surrounding AI investments in recent months, it’s not so surprising to see the stock price climb higher. However, a 235% gain in the space of 12 months suggests there are a lot of growth expectations baked into Palantir’s valuation. And that’s made perfectly clear when looking at the forward price-to-earnings ratio which currently sits at a massive 147!

As such, even after all the recent volatility, Palantir continues to trade at lofty multiples that could send shares plummeting if it fails to keep up with expectations. That’s not a risk I’m willing to take with my portfolio so, despite the potential, Palantir’s not a stock I’m rushing to buy right now.

As for the other US stocks on this list, investors need to dig a bit deeper to determine what’s driving their valuation and whether there’s more room for growth.

Since 2025, it seems UK shares are off to a good start, with the flagship FTSE 100 index up by almost 5%. Yet, not every British enterprise has had a great time of late.

In fact over the last six months, there have been some pretty heavy losses incurred by some well-known brands.

Britain’s worst five performers

Looking across the FTSE 350, the worst-performing UK shares over the last six months are:

1. John Wood Group, -67.8%
2. Vistry Group, -54.6%
3. Aston Martin Lagonda, -43.6%
4. JD Sports Fashion, -43.3%
5. Greggs (LSE:GRG), -41.4%

At a quick glance, there doesn’t seem to be an overarching theme across these businesses. Each operates in fairly distinctive industries, including engineering, homebuilding, automotive, fashion, and baked goods. And yet a £100,000 equal-weighted portfolio diversified across these five companies would now be worth around £49,860 – a near 50% crash.

What went wrong?

There are a lot of factors behind these lacklustre results. While some may be external in nature, there could also be some internal issues and mistakes being made by management teams. Let’s zoom into Britain’s favourite bakery chain, Greggs.

While the stock’s been fairly volatile over the years, the underlying business has a fairly impressive track record of sating customer appetites. Extended trading hours, the expansion of its store footprint, and new product launches have all contributed to Greggs’ 20% annualised revenue growth rate, with profits following behind. And even in 2024, it delivered record results surpassing £2bn in sales for the first time in company history.

So why is the stock down over 40% since September? It seems the first few weeks of 2025 are off to a rocky start, with like-for-like growth seemingly evaporating. Management’s putting the blame on bad weather, but the group’s steady stream of price hikes could also be contributing to declining sales as consumers look for cheaper alternatives.

Pairing this with the incoming rising costs from higher national insurance contributions, investors are getting understandably spooked.

Turnaround opportunities?

Often, some of the best UK shares to buy can be those which have fallen out of favour. Such businesses can end up getting oversold, creating terrific buying opportunities, even with headwinds plaguing operations. Is this the case with Greggs?

Slower growth among uncertain economic conditions isn’t all that surprising. However, it could be a big problem if the cause of slower growth is shrinking interest from customers due to higher prices. Further price hikes are likely on the way as staff costs rise, which may push sales growth into the red.

Right now, it’s too soon to tell whether weak trading in 2025 is due to a temporary blip like bad weather or a more fundamental issue. So until some much-needed clarity’s provided, this isn’t a business I’m rushing to buy. Of course, should sales performance start to recover even as the price of a sausage roll rises, then I may have to reconsider.

As for the other UK shares on this list, investors need to investigate each carefully to decide whether they’re a screaming bargain or a giant red flag waving people to stay away.

The 5 April Stocks and Shares ISA deadline is fast approaching. That means British investors are on the clock to maximise as much of their £20,000 annual allowance as possible.

After all, when the deadline passes, any unused allowance is lost forever. And given it provides British investors the opportunity to earn limitless capital gains and dividends tax-free, not capitalising on this investment vehicle could be an expensive mistake in the long run.

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 good news is all investors have to do is deposit money into their ISAs to use their allowance. Of course, once the money’s been added, investors now have to deal with a new problem – where to invest it.

With that in mind, three growth stocks catching my attention right now are Games Workshop, Toast, and Alpha Group International (LSE:ALPH).

Profiting from market turbulence

Games Workshop’s off to a stronger start in 2025, with a recent trading update informing investors that trading during January and February was firmly ahead of expectations. Meanwhile, the latest earnings from the restaurant-tech enterprise Toast revealed further market share gains. However, Alpha Group International is in a particularly interesting position right now.

The alternative banking and risk management fintech enterprise has been a terrific performer over the last five years, rising by over 150% without counting dividends. It even landed itself as one of the latest additions to the FTSE 250 index. But the upward journey hasn’t been without headaches.

In 2024, higher interest rates have caused customer project delays. This meant lower demand for Alpha’s currency risk management and alternative banking services. Pairing that with the loss of its founder and CEO, Morgan Tillbrook, who stepped down at the end of last year, shares suffered a double-digit drop in September.

However, despite these headwinds, Alpha’s simply continued to thrive when looking at the group’s January trading update, with revenues growing by 23%. Yet this might be just the tip of the iceberg.

With talks of tariffs and resurgent inflation dominating financial headlines in the US, exchange rates with the US dollar have been volatile. In fact, since the start of March, the value of the US dollar relative to the British pound has fallen by 3%. That’s pretty extreme for the world’s reserve currency.

Yet currency volatility is Alpha’s bread and butter. As more businesses seek to hedge against currency fluctuations, demand for Alpha’s risk management services is likely to rise. That means a powerful tailwind for management to capitalise on.

What could go wrong?

In my opinion, all three of these growth enterprises are potentially set to thrive in 2025 and are worthy of consideration. However, that doesn’t make them risk-free investments.

Suppose new tariffs emerge between the UK and the US. In that case, Games Workshop’s export costs are likely to rise considerably, given it manufactures all its products in Nottingham. Meanwhile, Toast’s tied to the cyclical nature of the restaurant industry.

As for Alpha, new CEO Clive Kahn has some big shoes to fill. Having only moved into the corner office in January, it’s too early to tell whether he can maintain Tillbrook’s spectacular track record. But given Kahn’s been at Alpha for over eight years, I remain cautiously optimistic about Tillbrook’s successor.

That’s why Alpha continues to be one of the largest holdings in my Stocks and Shares ISA.