Helal Miah, of The Share Centre, selects five stocks for ISA season and explains what they have to offer investors.

National Grid (NG.:LSE)

A lower-risk option for income-seekers

National Grid is looking to invest roughly £26bn over the next seven years on its infrastructure. The management is looking to improve the performance of the US operations. The UK political environment should also be less significant for National Grid than others in the sector because of the relatively large amount of revenues it generates from the north eastern parts of the US.

For many portfolios, this stock would form part of a core set of holdings. It is especially suitable for investors looking for an option with some defensive qualities and pays a fairly attractive dividend yield just above 5%, which the management intends to grow in line with the rate of inflation.

Amec (AMEC:LSE)

A balanced and medium-risk option

With increasing energy demands and falling production levels from existing wells and resultant tight demand and supply patterns, many commentators expect energy prices to remain elevated for many years to come. This helps the oil equipment and support services sector due to the industry’s hunger for finding further energy resources and maintenance of existing facilities to squeeze out as much oil as possible.

Acquisitions will be a key growth driver for Amec in the longer term and help deliver the targeted 100 pence per share in earnings by 2015. The move by the group to shift their focus to emerging markets has been welcomed by analysts.

Sentiment across the sector has been depressed on a weaker outlook, however Amec’s more diversified portfolio of businesses has seen the shares hold up better than its peer group. We recommend Amec as a long term ‘buy’ for investors looking for a mixture of growth and income and willing to accept a medium level of risk.

Prudential (PRU:LSE)

Suitable for those seeking a balanced, medium level of risk

Prudential’s ongoing expansion into developing markets, especially in Asia, is being rewarded as the sales and earnings momentum continues into the most recent trading figures with third-quarter sales from Asian markets up 15%.

It is now the leading European insurance company in the Asian market, however its exposure to the emerging markets is one of its best characteristics. There are also concerns over risk and we have seen the impact on the share price following January’s selloff.

The growth story in the Asian market should be longer term in nature, as demographic changes won’t happen overnight and the new middle classes buy insurance for the first time. With a rising stock market and increased investor confidence, we expect M&G, the fund management business, to manage larger assets. M&G is looking to expand its business. Europe is on its radar and this could be well timed given the potential economic turnaround in the region. There may be an additional premium to the stock, as there is speculation that certain parts of the business could be floated off as separate entities.

However, given growth plans and very strong share performance, you should not expect a great dividend yield from Prudential – unlike some of its peers.

Booker (BOK:LSE)

Suitable for those looking for growth and prepared to take a medium level of risk

Cash-and-carry company Booker has delivered a steady rise in sales and earnings during the past five years. As part of its ‘broaden’ strategy, it is growing through the launch of operations such as Chef Direct, acquisitions such as Makro UK and international expansion in Asia.

The group is also building on its strategic alliance with Metro AG, which is one of Europe’s leading retailers and is a major shareholder. A foothold in the vast Indian market has also been established.

The management team believes that cost synergies between Booker and Makro should improve profitability further ahead, with the expectation that this financial year could see savings of £26m. Other targets include the improvement of the cash-and-carry business centre experience, which involves lighter, brighter business centre environments, as well as improved choice, price and service. The strategy also seeks to harness its internet proposition as Booker Direct, which offers a delivery wholesale business that boasts customers such as the Prison Service in England and Wales, Marks & Spencer and Vue cinema chain. It also aims to promote Ritter Courivaud as a speciality food supplier to restaurants, and Classic – a trade wholesaler to pubs and licensed customers.

While we view the longer-term growth prospects as very good, investors should be aware that the shares have performed exceptionally, giving a modest dividend yield and a relatively high price multiple when compared with its peers. Drip feeding on share price dips would be worth considering.

Regus (RGU:LSE)

Higher-risk for investors seeking growth

Regus is a very international business with a broad geographical spread and is also the largest business of its type in the world. It provides flexible and mobile office spaces, desks with computers, meeting and conference rooms, which are ideal for many small or start-up businesses. Its services are also useful for large established corporates looking to expand their geographical reach. Readily equipped offices, including IT infrastructure and reception staff are ideal for these organisations that want to concentrate on establishing their business instead of worrying over property, rent or contract issues.

Despite the weakness of the global economy during the last few years, Regus has managed to rapidly grow its business – now covering more than 100 countries, 600 cities and targeting 2,000 office locations by the end of this year.

There is growing structural demand for more flexible and mobile working solutions helped by globalisation and communications technology. In the short to medium term, earnings could be limited due to the large investments required to establish new offices, but these should bear fruit, especially if the global recovery maintains its momentum. The acquisition of rival MWB Business Exchange progresses well.