With September just around the corner, I’ve been on the lookout for the best FTSE 100 shares to buy. Having trawled through the index, I think I’ve identified two exciting opportunities to add to my long-term portfolio. Let’s take a closer look.
Consistent profits
First, Antofagasta’s (LSE:ANTO) share price has been volatile in recent months. In the past three months, it’s down 21% and currently trades at 1,167p.
The Chile-based copper mining firm has been consistently profitable over the last five years, registering a pre-tax profit of $3.4bn for 2021.
Year
Pre-tax profit
2017
$1.8bn
2018
$1.2bn
2019
$1.3bn
2020
$1.4bn
2021
$3.4bn
It’s important to note, though, that this growth is not guaranteed in the future.
Furthermore, with its results for the six months to 30 June, the company reiterated its production guidance for 2022 of between 640,000 and 660,000 tonnes of copper.
However, during this period revenue fell by around 30% to $2.5bn. In addition, core earnings declined by about 50% to $1.2bn.
Much of the fall can be attributed to a drop in the copper price, in line with other commodities. Also, a drought in Chile has negatively impacted mining operations as water is essential for these.
It’s opening a desalination plant in the second half of this year, and this should greatly help the business to pick up production.
In the long run, demand for copper could increase significantly because it’s an essential component in many products, including electric vehicles.
Banking on higher interest rates
Second, shares in Standard Chartered (LSE:STAN) are down about 6.25% in the last three months. At the time of writing, they’re trading at 588p.
The banking firm has been benefiting from rising interest rates. These are currently set at 1.75% in the UK. With inflation above 10%, it’s very likely that interest rates will move higher.
This is generally good news for the likes of Standard Chartered because it may be able to charge more for borrowing services.
But it’s also worth noting that higher rates could be negative. With the cost-of-living crisis, potential customers may be put off taking on debt at more expensive levels.
In its results for the six months to 30 June, however, the business reported that pre-tax profit was up 7% to $2.8bn.
Furthermore, it announced that it’s embarking on a $500m share buyback scheme. It’s also paying an interim dividend of ¢4 per share. While this company may provide growth, it’s good to know that I could possibly derive income from the investment too.
Overall, these businesses may provide good opportunities if bought next month. While they face challenges, they’re both profitable and stable. To that end, I’ll add both firms to my portfolio next month and hold them for the long term.
The post 2 top FTSE 100 shares to buy in September! appeared first on The Motley Fool UK.
Why this £5 stock could be set to surge
Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now while it’s still available.
You’ll discover what we think is a top growth stock for the decade ahead… and the performance of this company really is stunning. In 2019, it returned £150 million to shareholders through buybacks and dividends.
We believe its financial position is about as solid as anything we’ve seen.
Since 2016, annual revenues increased 31%
In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
Operating cash flow is up 47%. (Even its operating margins are rising every year!)
Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today! So please don’t wait another moment…
Get the full details on this £5 stock now
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFFFFF”, ‘color’, ‘#FFFFFF’);
})()
More reading
Is now the time to buy Antofagasta shares?
Stocks of the week: Aviva, Antofagasta, Just Group
This is one of the best shares to buy for juicy dividends!
Standard Chartered shares jump on big profit increase! Should I buy or am I too late?
With no savings, I’m drip-feeding £250 a month into these 2 top UK shares
Andrew Woods has no position in any of the shares mentioned. The Motley Fool UK has recommended Standard Chartered. 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.