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After falling 12% in August, is this FTSE 100 star the best share to buy for my SIPP?


A black woman uses a smartphone at home, and watch stock charts.

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I wonder if Relx (LSE: ReL) may be the best share of purchase in September, after DIP gave me a rare opportunity to add it to my personal pension in a lower evaluation.

Anglico Information and Analysis Group FTSE 100 Hero, sell subscription -based data and decision tools for companies in more than 180 countries. Over a period of five years, the share price has increased more than twice, a height of 102 %, with profit distributions on top. However, last month, the stock suddenly decreased by 11.69 %, leaving it 3.7 % less over 12 months.

This is a remarkable reflection of the company that has achieved annual returns of about 15 % for half a decade. The question is whether this is just a temporary stop, or a sign that it has gone as much as possible.

Relx is the FTSE 100 winner

August stagnation followed the results of the Reliex half -year on July 24. However, the numbers were strong. Revenue increased by 7 % to 4.74 billion pounds, while modified operating profits increased by 9 % to 1.65 billion pounds. The Board of Directors raised temporary profits distributions by 7 % to 19.5 pixels. In my opinion, there was nothing in this update to justify a sharp sale.

It may simply be that the expectations were very high. Relx was trading on a price ratio to about 32 at the beginning of August, and he did not leave a big room for disappointment. The recession has reduced to 28.7. It is not cheap, but according to its recent standards, it is a little cheaper.

Weight risk

Artificial intelligence is an issue here. When Amnesty International appeared for the first time, many were afraid to allow customers to repeat services inside the home. Then the story turned, as people think it will help RLX to enhance its shows. It is too early to know, but I wonder whether the talk of the artificial intelligence bubble may have an impact on feelings.

There are other risks as well. Spending on companies is periodic, and if companies tighten budgets, the demand may slow down. With inflation and sticky interest rates, this can be a problem for some yet. Organizational audit on the use of data is another factor. With the maximum market of 62 billion pounds, the huge measure may limit the speed of future growth. As every good investor knows, there is no risk -free company, whatever its busy record.

The growth of profit distributions adds the call

The backward return of 1.84 % appears modest, but the Relx raised its batches every year this century, regardless of one decade in 2010. Over the past fifteen years, stock profits have multiplied at 7.95 a year, comfortably overcoming inflation. This makes her play hidden income as well as growth stock.

As for the long -term stocks and stocks for investors, this looks like a high -quality work with strong repeated revenues and reliable profit growth. I plan now to start building a SIPP site.

I think Relx is another one that investors may think of buying as well, with a long -term vision.


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