Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 FTSE 100 Growth-and-Income Shares

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- Some investors prioritize capital growth through a rising share price; some prioritize a high income from a big dividend yield. But some shares -- growth-and-income shares -- offer investors a bit of both.

Imperial Tobacco Group  (LSE: IMB  ) (NASDAQOTH: ITYBY  ) , J Sainsbury  (LSE: SBRY  ) (NASDAQOTH: JSAIY  ) , and TUI Travel  (LSE: TT  ) are three companies from the U.K.'s elite FTSE 100 index that have grown both their earnings and dividends faster than inflation are forecast to continue doing so.

Imperial Tobacco
Imperial Tobacco, the Bristol-headquartered international tobacco company, has been a safe port for investors through the past five years of stormy economic seas. Growth has been driven by the group's key strategic brands -- Davidoff, Gauloises, West, and JPS -- and by markets outside the moribund EU region.

Last year, Imperial Tobacco increased its earnings per share (EPS) by 7% and its dividend by 11%. Analysts expect EPS to rise 5.5% this year and 7.5% in 2014, with the dividend lifted 9.5% and 10.5%.

At a recent share price of 2,344 pence, Imperial Tobacco is trading on 11 times forecast 2013 earnings and offers a dividend yield of 4.9% -- both attractive relative to the FTSE 100 average.

J. Sainsbury
Sainsbury's has good momentum in its business, outshining FTSE 100 supermarket peers Tesco and Morrisons. Latest figures from Kantar Worldpanel for the 12 weeks to Feb. 17 show the trend continuing: Sainsbury's was the only one of the three to increase its grocery market share during the period.

Last year, Sainsbury's increased EPS by 6% and its dividend by 6.6%. Analysts are forecasting EPS growth of 5% to 6% for each of the next three years, with dividend growth running at around 4%.

At a recent share price of 341 pence, Sainsbury's is trading on 11.5 times forecast 2013 earnings and offers a dividend yield of 4.9% -- again, both attractive relative to the FTSE 100 average.

TUI Travel
Tour operator TUI Travel has weathered the last five tough years very well, helped by the collapse of some large competitors and innumerable smaller operators.

Last year, TUI Travel increased EPS by more than 9% and its dividend by 3.5%. Analysts expect EPS growth to average 8% a year for the next two years with dividend growth of the same order.

At a recent share price of 311 pence, TUI Travel is trading on just over 11 times forecast 2013 earnings and offers a dividend yield of 3.9% -- once again, both attractive relative to the FTSE 100 average.

Growth and income
If you're an investor who's more interested in growth than income, you may wish to read this exclusive in-depth report. The company featured has growth potential not reflected in the share price -- and has just been declared "The Motley Fool's Top Growth Stock for 2013."

Just click here to download the report -- it's free.

If income is more important to you, we have another exclusive report, which features a great dividend share. This company offers a juicy 5.7% yield -- and our analysts have declared it "The Motley Fool's Top Income Stock for 2013."

This report is also 100% free -- simply click here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2283594, ~/Articles/ArticleHandler.aspx, 10/23/2016 12:55:03 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 12:11 PM
IMB $3966.35 Up +104.35 +2.70%
Imperial Brands CAPS Rating: No stars
ITYBY $0.00 Down +0.00 +0.00%
Imperial Tobacco G… CAPS Rating: No stars
JSAIY $11.88 Up +0.06 +0.47%
J Sainsbury plc (A… CAPS Rating: No stars
SBRY $240.38 Up +1.68 +0.70%
Sainsbury (J) CAPS Rating: No stars
TT $0.00 Down +0.00 +0.00%
TUI Travel CAPS Rating: No stars