Stock market

1 no-brainer FTSE 100 stocks I’ll buy for my stocks and shares ISA in 2024

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You may have noticed that me and my silly colleagues love a Stocks and Shares ISA!

A major reason for this is the tax benefits of this type of investment vehicle. I don’t have to pay tax on capital gains and dividends from my stocks. Plus, there’s a juicy £20,000 annual allowance, which is more than enough for me.

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided for informational purposes only. It is not intended to be, nor does it constitute, any tax advice. Readers are responsible for conducting their own due diligence and seeking professional advice before making any investment decisions.

With the end of the financial year behind me, my focus is on stocks I can buy to build my wealth moving forward with my new allowance.

Here’s a stock I’d love to buy as soon as I have some investable cash.

Savings and Investments

M&G (LSE: MNG) is one of the largest savings and investment businesses. The firm manages investments worldwide for individuals and large institutions, such as pension funds. With roots spanning 170 years, M&G is a trusted name in its market.

Market volatility has not been kind to financial services stocks. I think M&G’s shares have been held back because of this.

They are up 7% over the 12-month period, from 194p at this time last year, to a current level of 209p.

The bull and the bear case

From a bearish perspective, the current economic struggles are troubling to me. As consumers struggle with inflation, rising living costs, including mortgage payments, energy and food, could hurt investments and savings. This could be bad news for M&G’s performance and shareholder returns.

Also, the high debt-to-equity ratio of 1.9 is troubling for an investor like me, who is looking to grow the business and provide me with juicy returns.

On the other side of the coin, I am a long-term investor, so I will try to buy and hold M&G shares for at least a five to ten year period. I can look at any investments that boost my ISA. A large part of this is linked to the growing and aging population in the UK. Many will start thinking about planning for their early years, and M&G’s presence and track record can guide them. FTSE 100 Responsible This can be good news for performance and return levels.

After that, the shares look very attractive at a price-to-earnings ratio of just 10. Also, the strong dividend yield of over 9% is attractive. However, it is worth remembering that profits are never guaranteed.

Finally, in my view, the updated 2023 final results released on March 21 made decent reading. The key points for me were that the client’s net income, operating profit before tax, and its profitability increased. Despite the recent turmoil, this is a positive update.

Risk and reward

All stocks come with risks but the level of potential for rewards on offer from M&G makes it an exceptional purchase for me and my ISA.

A solid track record, plus a good market position, attractive valuation, and a juicy passive income opportunity all help my investment case today.

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