Labelling certain FTSE 100 members as ‘no-brainer’ dividend shares needs to be taken with a pinch of salt. After all, recent events have shown that passive income from the stock market can never be completely guaranteed.
Having said this, there are some top-tier companies that, based on their track records, I’d buy in this and any month if I had the available cash.
Reliable FTSE 100 dividend share
One more-reliable-than-most example is the global distribution and services business Bunzl (LSE: BNZL).
Granted, a company that delivers cleaning products and food packaging hardly gets the blood pumping. However, the relative stability of its earnings has enabled Bunzl to hike its total payout on an annual basis for many years.
Critics might highlight the rather average forecast 2.3% dividend yield. That’s lower than I’d get from some cash savings accounts these days.
Then again, evidence consistently shows that staying in cash for years is just about the worst thing I can do for my wealth, due to the eroding power of inflation.
Personally, I’d rather grow my wealth gradually over the years by reinvesting dividends. Indeed, this strategy would have paid off handsomely if I’d bought Bunzl a decade ago.
All guns blazing
Like its FTSE 100 peer, defence giant BAE Systems (LSE: BA.) has a record of increasing its cash returns every year. As things stand, I can’t see anything interrupting this trend.
Seen purely from an investment perspective, the invasion of Ukraine has been a boon for BAE. As one might expect, this has done no harm to the share price either. The stock temporarily breached the 1,000p boundary back in April.
Some momentum has been lost since then. However, we’re still looking at a capital gain of 34% in five years. That’s hardly shabby, considering the FTSE 100 is down 5% over the same period.
Again, a 3.2% yield isn’t massive but it should be covered over twice by profit. This means it’s very likely to be paid. Given the current economic headwinds, I don’t think the same can be said for all stocks with higher projected yields.
A merciful end to the conflict in Easter Europe could bring out more profit-takers, but I would be inclined to stick with BAE for the long term.
Near 52-week lows
Since no one knows what will happen next in the markets, creating a diversified portfolio where I’m not dependent on any one sector feels prudent. That’s why my final FTSE 100 dividend share for today is Diageo (LSE: DGE).
The premium drinks purveyor is yet another company that’s got a great record of pushing its dividends up every year. Right now, there’s a 2.3% forecast yield in the offing. Considering that people drink in good times and bad, I’d be very surprised if this wasn’t paid out.
That said, even the mighty Diageo isn’t devoid of risk. Shares currently trade close to their 52-week low, perhaps on renewed interest in less defensive stocks. The untimely death of dependable CEO Ivan Menezes is another potential factor.
Personally, I’d see this as a great opportunity to climb on board.
Thanks to its bursting portfolio of brands that people habitually choose over cheaper alternatives, I think this company can go on rewarding investors long into the future.
The post 3 ‘no-brainer’ FTSE 100 dividend shares I’d buy in July appeared first on The Motley Fool UK.
Should you invest £1,000 in BAE Systems right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BAE Systems made the list?
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More reading
Is Diageo the ultimate retirement stock?
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Buy in July! 2 FTSE 100 shares for building long-term wealth
2 of the safest dividend shares to buy in July
Is this the best big-picture stock in the FTSE 100?
Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended BAE Systems, Bunzl Plc, and Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
Labelling certain FTSE 100 members as ‘no-brainer’ dividend shares needs to be taken with a pinch of salt. After all, recent events have shown that passive income from the stock market can never be completely guaranteed.
Having said this, there are some top-tier companies that, based on their track records, I’d buy in this and any month if I had the available cash.
Reliable FTSE 100 dividend share
One more-reliable-than-most example is the global distribution and services business Bunzl (LSE: BNZL).
Granted, a company that delivers cleaning products and food packaging hardly gets the blood pumping. However, the relative stability of its earnings has enabled Bunzl to hike its total payout on an annual basis for many years.
Critics might highlight the rather average forecast 2.3% dividend yield. That’s lower than I’d get from some cash savings accounts these days.
Then again, evidence consistently shows that staying in cash for years is just about the worst thing I can do for my wealth, due to the eroding power of inflation.
Personally, I’d rather grow my wealth gradually over the years by reinvesting dividends. Indeed, this strategy would have paid off handsomely if I’d bought Bunzl a decade ago.
All guns blazing
Like its FTSE 100 peer, defence giant BAE Systems (LSE: BA.) has a record of increasing its cash returns every year. As things stand, I can’t see anything interrupting this trend.
Seen purely from an investment perspective, the invasion of Ukraine has been a boon for BAE. As one might expect, this has done no harm to the share price either. The stock temporarily breached the 1,000p boundary back in April.
Some momentum has been lost since then. However, we’re still looking at a capital gain of 34% in five years. That’s hardly shabby, considering the FTSE 100 is down 5% over the same period.
Again, a 3.2% yield isn’t massive but it should be covered over twice by profit. This means it’s very likely to be paid. Given the current economic headwinds, I don’t think the same can be said for all stocks with higher projected yields.
A merciful end to the conflict in Easter Europe could bring out more profit-takers, but I would be inclined to stick with BAE for the long term.
Near 52-week lows
Since no one knows what will happen next in the markets, creating a diversified portfolio where I’m not dependent on any one sector feels prudent. That’s why my final FTSE 100 dividend share for today is Diageo (LSE: DGE).
The premium drinks purveyor is yet another company that’s got a great record of pushing its dividends up every year. Right now, there’s a 2.3% forecast yield in the offing. Considering that people drink in good times and bad, I’d be very surprised if this wasn’t paid out.
That said, even the mighty Diageo isn’t devoid of risk. Shares currently trade close to their 52-week low, perhaps on renewed interest in less defensive stocks. The untimely death of dependable CEO Ivan Menezes is another potential factor.
Personally, I’d see this as a great opportunity to climb on board.
Thanks to its bursting portfolio of brands that people habitually choose over cheaper alternatives, I think this company can go on rewarding investors long into the future.
The post 3 ‘no-brainer’ FTSE 100 dividend shares I’d buy in July appeared first on The Motley Fool UK.
Should you invest £1,000 in BAE Systems right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BAE Systems made the list?
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setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFFFFF”, ‘color’, ‘#FFFFFF’);
})()
More reading
Is Diageo the ultimate retirement stock?
Here’s 1 FTSE 100 stock I’d snap up and hold
Buy in July! 2 FTSE 100 shares for building long-term wealth
2 of the safest dividend shares to buy in July
Is this the best big-picture stock in the FTSE 100?
Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended BAE Systems, Bunzl Plc, and Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
