While the FTSE 100 may have fallen heavily in recent months, I’m considering whether shares in Barclays PLC (LON:BARC) (BARC.L), Diageo plc (LON:DGE) (DGE.L), Centrica PLC (LON:CNA) (CNA.L) and Tesco PLC (LON:TSCO) (TSCO.L) could deliver impressive total returns.
Barclays is a stock that I feel has made significant improvements to its business model in recent years. It has completed a restructuring and focused on boosting its balance sheet strength in lieu of a rising dividend.
Now, the company is set to increase dividends so that it has a yield of over 5% in the current year. This could help to catalyse investor sentiment and push the Barclays share price higher in my opinion.
Diageo’s financial outlook continues to be relatively strong in my view. It has a good track record of increasing profitability, and this may help to keep investor sentiment buoyant even though there are potential risks ahead in terms of a slowing Chinese economy.
With Diageo having a refreshed strategy that will focus on boosting its efficiency, I feel that the company could offer improving investment prospects. Although not a cheap stock, I’m optimistic about its prospects of beating the FTSE 100.
Centrica continues to make significant changes to its business model. They are set to deliver major cost savings which could help to make the business more efficient.
Although regulatory and political risk continues to be high and Centrica’s share price could be volatile in the near term, I’m optimistic about its long-term turnaround potential. A dividend yield of around 8% suggests to me that the stock may offer a margin of safety.
Tesco’s recent update showed that it is delivering on its growth strategy. I feel that its management team is performing well, and that the company is becoming increasingly efficient as well as delivering improvements to customer service.
These changes could help to strengthen the company’s competitive position in a crowded marketplace. With a PEG ratio of around 0.8 and improving financial prospects, I’m upbeat about the outlook for the Tesco share price in the long run.