Sell in June? No way, I’d buy this FTSE 100 star today!

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Cliff D’Arcy | Saturday, 13th June, 2020 | More on: RKT I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Every spring, an old stock-market saying appears, regular as clockwork. It is “Sell in May and go away, don’t come back until St Leger’s Day.” Indeed, centuries before the FTSE 100 existed, selling in May was considered a worthwhile and profitable strategy. Why?Wealthy traders would desert London during the hot, smelly and unhygienic summer months. Thus, stock trading was thin in the heat, causing volatility and sharp price moves. When the rich returned in September, traders reinvested their ‘dry powder’ back into securities, often causing prices to rise.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The FTSE 100 had a marvellous MayAnd selling in June? Well, after the share price rises in May, some might have felt like selling, even though the trajectory has been generally downwards in the past few days.May 2020 was a terrific month for UK investors, as markets recovered from late-March lows. After plunging below 5,000 on 23 March, the FTSE 100 soared more than a fifth (22%) to end May at 6,077.The FTSE 100 kept rising in early June, touching 6,500 last Monday. The index has dived 400 points (6%) since – largely thanks to a 4% fall on Thursday after awful economic figures emerged.This business is a star performerTwenty years ago, at the height of the dotcom boom, I bought shares in a great little business called Reckitt Benckiser (LSE: RB). I paid roughly £5 a share and sold most when RB’s share price doubled to £10 within 18 months. This turned out to be one of my worst investment decisions.Under the stewardship of Bart Becht, its no-nonsense, hard-charging Dutch CEO from 1995 to 2011, RB grew rapidly through acquisitions and organic growth. Today, the consumer-goods manufacturer is worth over £49bn and is a shining star of the FTSE 100.Had I held onto my RB shares and reinvested my dividends into more shares, I’d have at least 20 times my stake (a 2,000%+ return). How I regret taking that early 100% profit in 2001. Ho hum.You pay for star qualityToday, RB’s share price is 6,908p – around 14 times what I paid back in spring 2000. Despite the ravages of Covid-19, this FTSE 100 share is up 3.5% over the past 12 months, aided by soaring sales of disinfectant Dettol.What’s more, RB’s brands cupboard is stuffed with winners in hygiene, health and nutrition. For example, Clearasil spot care, Durex condoms, Finish laundry detergent, Nurofen painkillers and the near-legendary Cillit Bang surface cleanser. Millions of UK homes regularly buy and use RB products. Thus, RB has what billionaire investor Warren Buffett calls a wide ‘competitive moat’. As for RB’s fundamentals, they are all solid and unexciting, which is fine for a FTSE 100 stalwart. The yearly dividend of 174.6p – the latest instalment of which was paid on 28 May – equates to a worthwhile dividend yield of 2.5%.As for the coronavirus crisis, RB is thriving. Revenues of £3.5bn in the three months to March were up 13.3%, like-for-like. Were heightened personal hygiene to continue until a Covid-19 vaccine is found (and hopefully after), this FTSE 100 firm’s sales will stay strong.In summary, it’s never too late to buy into a quality FTSE 100 business. Although I regret selling RB shares in 2001, I wouldn’t hesitate to buy them at today’s price. As they say in sports: “Form is temporary, but class is permanent.” And RB is a class act. Enter Your Email Address See all posts by Cliff D’Arcy Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img “This Stock Could Be Like Buying Amazon in 1997” Sell in June? No way, I’d buy this FTSE 100 star today! Simply click below to discover how you can take advantage of this. Image source: Getty Images 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’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.last_img

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