St George’s English stock picks

Many stocks listed within the FTSE 100 and the FTSE 250 actually have large amounts of international exposure.

As the nation celebrates the patron saint of England next week, Nick Raynor, investment adviser at The Share Centre, picks out six stocks to make St George proud of the truly English exposure they offer investors.

Stobart Group

"Stobart Group - famed for its named lorries - has a fan base almost as big as its number of investors. Since listing, the company has looked to diversify and move into other areas of transport. The first sizeable passenger airline is expected to begin flights from Stobart Groups operated airport in Southend later this year. This diversification especially into airports adds to the risk and potentially costs.

"Its innovative transport solutions are well regarded by analysts and more importantly customers, therefore long term attractions remain for investors."
Greggs

"Whilst many high street retailers are struggling, Greggs is bucking the trend demonstrating steady growth for investors seeking long term return.  The future is good - the 3% dividend is respectable and Greggs can offer investors the potential for good growth and stability. We expect the company to benefit from a good Easter and recent results affirm our decision to maintain Greggs as a ‘buy' for investors."

ITV

"ITV's performance over the last year has been such that the company has re-entered into the FTSE 100 and this is a credit to the new management team. Advertising revenues look like they will continue to increase and the broadcaster is to reward its investors by paying an interim dividend later this year.

"The 2012 Olympics are coming and we have no doubt advertising rates will increase during the games. As a result we expect ITV to continue to perform well for the next 18 months at the very least."

Northumbrian Water

"Northumbrian Water is a steady water company with the added attraction of a potential takeover situation. Any dividend produced by a water company can help protect against inflation, as the revenue from charges to customers is indexed to the retail price index, as is the regulated asset value. If inflation is set to remain high in the UK, Northumbrian Water's pledge to grow its dividend above inflation will provide an inflation hedge.

"The share price has fallen back since November 2010 and currently provides a more attractive entry point for investors looking for a defensive investment allied to good yield."

Marston's

"This is a higher risk recovery stock, with an attractive yield, which has been swimming against the tide of economic and sector concerns. The management remain cautious on the outlook so investors will need to be patient.

"Food sales have provided a vital boost to the company and management are gearing the product to being family friendly and increasing the importance of food. The group is also promoting a new business model for tenanted pubs, which incentivise publicans.

"Recent weakness has seen the share price fall which makes the yield very attractive but there is also potential growth on offer. The potential rewards are worth the risk."

Howden Joinery

"As interest rates remain at historical lows, consumers are spending more on their own property and making the most of lower mortgage payments. Howden Joinery is one company that has seen the benefit of this. Since moving away from the MFI brand, the company has been winning market share from competitors and is continuing to increase its earnings.

"The company will pay a dividend during 2011, however it looks like it will be a token gesture - at least it's a start. At current levels we believe there is more to come from the share price and recommend investors take a closer look."

Raynor added: "These are all strong stocks from our buy list. However, investors should note that some international exposure can be beneficial to a portfolio. Investing in companies that have a global presence can create diversity and add stability to a company's performance when geographical areas are experiencing times of uncertainty”