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The stocks and Shares ISA deadline is fast approaching. This is because April 5 marks the end of the fiscal year. At that point, the £20,000 limit that investors can invest each year will be reset.
Many investors tend to rush into stocks at this time for fear of missing out on potential tax-free gains. While I would never recommend that, I've had my eye on these two for a while now. If I have extra money, I hope to collect it in the next few days.
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Unilever
The first of them is Unilever (LSE: ULVR). The stock is off to a good start this year. But it's still down 6.6% in the last 12 months, so I see an opportunity.
There are a few reasons why I like the business, including its recent decision to spin off its ice cream division. He announced a plan earlier this month which will see the company cut 7,500 jobs in a bid to save £684m over the next three years. This influences the company's Growth Action Plan more broadly.
I think this is a smart move. Running your ice cream division requires a lot of capital. Thanks to the rationalization, the company will be able to focus on its strongest assets. This is something many shareholders have been waiting for the company to do for years.
Measures like these should help Unilever increase its profits in the times to come and, as a result, also increase its dividend. Right now it yields 3.8%. That is in line with the FTSE 100 average and has experienced constant growth over the last decade.
Unilever faces some challenges. Inflation is a constant risk that has forced the company to increase its prices. This could lead consumers to opt for cheaper alternatives. Inevitably, your restructuring plans may pose greater challenges.
However, I like his defensive nature. It sells essential products used by 3.4 billion people every day. Those are the companies I want to have.
Games workshop
I am also looking to increase my holdings in Games workshop (LSE: VAG). Over the past five years, the stock has risen. I think it may continue to work in the future.
Like Unilever, it offers a passive income opportunity through its 4.3% yield. However, that's not the reason I want to buy more shares.
The main factor for me is its dominant position in the market. It is the pioneer in the tabletop wargame industry and has little competition at this time. A look back at its impressive revenue growth over the last decade is proof of how beneficial it has been for the company.
The business attracts millions of players and many of its boxes sell out within days of their launch. However, the company has no plans to slow down. Now he is broadening his horizons as he competes to convert his war hammer universe in cinematographic and television content.
Of course, with the UK in a “technical recession”, there is the threat of sales slowing in the times to come. What's more, it trades at a maximum of 23 times trailing earnings.
However, with their loyal customer base and ambitious plans, I'm optimistic about Games Workshop.
