UK buyers have quite a lot of shares to select from on the FTSE 100. Development shares promise excessive returns, dividend shares pay common revenue and worth shares recognize over time. And don’t neglect defensive shares, offering a buffer when the economic system goes crazy!

By establishing a well-balanced portfolio of various shares, buyers can scale back threat and goal for steady development over time.

I’m at all times looking out for brand spanking new and promising shares to spice up my portfolio. So listed below are three I plan to purchase in October.

Development

I thought-about shopping for JD Sports activities Style (LSE: JD.) shares earlier this yr however determined in opposition to it. Quickly after, the corporate issued a revenue warning and the price spiralled! The warning was as a result of considerably decrease spending in 2023 as a result of inflation.

Sports activities and style are each areas shoppers have a tendency to cut back spending on when cash’s tight. Issues are bettering now however one other upset may harm the corporate’s earnings once more.

So with the price up by 50% since February, is now the time to purchase? Goldman Sachs thinks so — the dealer put in a Purchase score on the inventory final month.

Its metrics look good too. The price-to-earnings (P/E) ratio’s 15.4 and the price-to-sales (P/S) ratio is 0.8. It’s additionally buying and selling at 32% under truthful worth, primarily based on future money move estimates.

That each one suggests sturdy development potential, in my view. 

Dividends

Rio Tinto‘s (LSE: RIO) a UK-based mining conglomerate with operations in Africa and Australia. It’s a 151-year-old firm with an £80bn market-cap, so it’s pretty well-established. That makes it a extra dependable alternative for long-term dividends.

At 6.8%, it has the ninth highest yield on the FTSE 100. Dividends have elevated at a mean charge of 14.62% a yr for the previous 15 years.

However whereas the dividends look good, price development might be in danger. With 60% of the corporate’s income coming from China, the stifled Asian economic system there may harm its earnings. This has been famous by analysts, who forecast earnings per share (EPS) to say no at a charge of 0.8% a yr.

If that will get worse it may threaten future dividends however, for now, it seems like an important earner to me.

Defensive

AstraZeneca‘s (LSE: AZN) the biggest firm on the Footsie with a market-cap of £185bn. The pharma big has a really steady price with minimal volatility throughout financial crises. It additionally has comparatively gradual development, growing at an annualised charge of 5% a yr since 2014. These are each widespread attributes of a defensive share.

Patent expiry’s a standard threat with pharmaceutical firms and might result in income loss. AstraZeneca has poured cash into R&D to mitigate this threat however it’s ever-present. 

In July, it posted average Q2 outcomes with a 13% improve in income and 6% earnings development. Earnings-per-share (EPS) got here in barely under analyst expectations and revenue margins fell by 1%. However as a defensive share, I don’t anticipate spectacular development from AstraZeneca — solely that its steady price permits me calm and restful sleep patterns.