Our experts' share picks for 2011

Read: Our experts' investment trust picks for 2011

Read: Our experts' fund picks for 2011

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Bank stress tests, fresh rounds of quantitative easing, fears of a double dip and problems across the eurozone have ensured a bumpy ride for stockmarket investors in 2010. The FTSE 100 started the year around 5500 and finished the year only a smidgeon up from that.

At the start of July 2010, we saw banks take a nosedive, as fear grew of a dreaded double-dip recession, and the FTSE 100 touched 4812.

Fast forward just four months and investors had perked up considerably at the news of a $600 billion (£380 billion) splurge of printed money in the US. On 4 November, the FTSE 100 soared to 5862, its highest since 2008.

Continued low interest rates and some better-than-expected company profits also helped keep the stockmarket fairly buoyant in 2010. But fund managers and stockbrokers believe volatility will continue in 2011 and that government spending cuts and tax rises will be painful.

Despite the uncertainty, our experts have picked their shares to watch out for in 2011.

CARNIVAL - price 2622p, yield 0.5%

"This cruise company's long-term returns are above the cost of capital and it has seen a rapid improvement in cashflow. We expect a 2% rise in yield in 2011, a 20% rise in share price and a dividend increase."

Jeremy Thomas, chief investment officer, UK equities, RCM

BOOT (HENRY) - price 88.5p, yield 2.8%

"It has almost no debt. Its share price is 91p, but the real value of the company's shares is £2. We expect the dividend to increase in 2011."

Jeremy Thomas

HARGREAVES LANSDOWN - price 493p, yield 1.7%

"We like its strong distribution network and high (70%-plus) recurring revenues. There are long-term growth drivers of increased savings and great potential in the SIPP market."

Anthony Cross, manager of the Liontrust Special Situations fund

RWS  - price 273.5p, yield 4.4%

"This firm is the largest patent translation business in Europe and we like that it is exposed to growth in emerging markets. The shares are inexpensive at around 10 times earnings, with a 4% plus yield."

Anthony Cross

CABLE & WIRELESS WORLDWIDE - price 61.7p, yield 7.3%

"The shares overreacted to the loss of government business, so it's attractive on valuation grounds. It has good momentum in winning new business, it's moving into positive cashflow and profits, and the dividend yield is high."

Tom Gidley-Kitchin, analyst at Charles Stanley

ASTRAZENECA  - price 2996p, yield 5.2%

"The share price could rebound in 2011, but even if it doesn't, it's a bargain basement stock and a solid dividend payer."

Jeremy Batstone-Carr, director of private client research at Charles Stanley

EXPERIAN  - price 735.5p, yield 2.2%

"This FTSE 100 share is looking at ways of exploiting its assets, and its share price could move up in 2011."

Total group revenue improved to $2 billion (£1.3 billion) in the six months to 30 September 2010, compared with $1.9 billion the year before.

Andy Parson, advice team manager at The Share Centre

CHURCHILL MINING*  - price 108p, yield nil

"This AIM-listed company is valued at just £113 million, but it"s expanding and is doing well in emerging markets."

Andy Parson

* Not eligible for ISAs.

This article was originally published in Money Observer - Moneywise's sister publication - in January 2011.

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